Coty (NYSE:COTY) Shares Down 7.3% - Should You Sell?

Key Points

• Coty shares fell 7.3% to about $3.23 in Tuesday trading, with volume 30% below its average.
• Analyst sentiment is cautious: the consensus rating is “Reduce,” with a $3.21 price target; nine analysts rate the stock Hold, three Sell, and one Buy.
• Coty reported quarterly EPS of -$0.02, missing estimates by $0.01, while revenue of $1.27 billion topped forecasts and rose 1.3% year over year.

Shares of Coty (NYSE:COTY - Get Free Report) dropped 7.3% on Tuesday. The stock traded as low as $3.20 and last traded at $3.2250. 6,079,350 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 8,684,212 shares. The stock had previously closed at $3.48.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Morgan Stanley boosted their price objective on shares of Coty from $2.50 to $2.75 and gave the stock an "equal weight" rating in a report on Tuesday, August 25th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $2.60 target price on shares of Coty in a research report on Thursday, August 20th. TD Cowen started coverage on Coty in a research note on Friday. They issued a "hold" rating on the stock. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $3.00 price target on shares of Coty in a report on Friday, August 21st. Finally, Weiss Ratings lowered Coty from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday. One investment analyst has rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $3.21.

Coty Stock Down 5.9%

The company has a market capitalization of $2.88 billion, a price-to-earnings ratio of -4.68, a PEG ratio of 0.65 and a beta of 0.82. The stock's fifty day simple moving average is $2.87 and its two-hundred day simple moving average is $2.54. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.75 and a quick ratio of 0.42.

Coty (NYSE:COTY - Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.01). The business had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.19 billion. Coty had a positive return on equity of 5.68% and a negative net margin of 10.42%. Coty's revenue was up 1.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.05) EPS. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. On average, sell-side analysts predict that Coty will post 0.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Moss Adams Wealth Advisors LLC acquired a new stake in Coty in the 3rd quarter valued at approximately $29,000. AlphaGrep UK Ltd acquired a new position in Coty during the 2nd quarter worth $25,000. Elmwood Wealth Management Inc. acquired a new position in Coty during the 3rd quarter worth $34,000. Vise Technologies Inc. bought a new position in shares of Coty in the third quarter worth $36,000. Finally, Citizens Financial Group Inc. RI grew its stake in shares of Coty by 38.6% in the third quarter. Citizens Financial Group Inc. RI now owns 18,170 shares of the company's stock worth $47,000 after purchasing an additional 5,059 shares in the last quarter. 42.36% of the stock is currently owned by institutional investors.

Coty Company Profile

Coty Inc is a global beauty company that develops, manufactures and markets fragrances, cosmetics, skin care and body-care products. Its portfolio includes luxury, prestige and mass-market brands, with products sold through department stores, specialty retailers, e-commerce platforms and other distribution channels.

The company's brands have included CoverGirl, Rimmel London, Max Factor, Bourjois, Gucci Beauty, Calvin Klein, Marc Jacobs, Burberry, Hugo Boss and Chloé, among others. Coty also participates in professional beauty through hair-care and salon brands, including the Wella portfolio.

Founded in Paris in 1904 by François Coty, the company built its early reputation in fragrance before expanding into broader beauty categories and international markets.

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