Coty (NYSE:COTY) Stock Falls 4.5% - Here's Why

Key Points

• Coty shares fell 4.5% to about $4.14, with trading volume down 83% versus the average session.
• Analysts’ average rating is “Reduce”, with an average price target of $3.35; ratings include one Buy, ten Holds, and two Sells.
• Coty beat quarterly earnings and revenue estimates, reporting EPS of $0.16 and revenue of $1.56 billion, though revenue declined 1.4% year over year.

Shares of Coty (NYSE:COTY - Get Free Report) traded down 4.5% on Wednesday. The company traded as low as $4.13 and last traded at $4.1350. 1,470,481 shares traded hands during trading, a decline of 83% from the average session volume of 8,700,063 shares. The stock had previously closed at $4.33.

Analyst Ratings Changes

A number of equities analysts have commented on COTY shares. Jefferies Financial Group boosted their target price on shares of Coty from $2.40 to $2.95 and gave the stock a "buy" rating in a report on Monday, October 19th. Barclays raised their price target on shares of Coty from $2.00 to $3.00 and gave the company an "underweight" rating in a report on Monday. Zacks Research upgraded shares of Coty from a "strong sell" rating to a "hold" rating in a research note on Thursday, November 5th. Citigroup increased their target price on shares of Coty from $2.80 to $3.00 and gave the company a "neutral" rating in a research report on Wednesday, October 14th. Finally, Morgan Stanley increased their target price on shares of Coty from $2.50 to $2.75 and gave the company an "equal weight" rating in a research report on Tuesday, August 25th. One analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $3.35.

Coty Stock Performance

The company has a debt-to-equity ratio of 0.84, a current ratio of 0.75 and a quick ratio of 0.45. The firm has a market cap of $3.65 billion, a price-to-earnings ratio of -6.36, a P/E/G ratio of 0.65 and a beta of 0.83. The firm has a fifty day simple moving average of $3.00 and a two-hundred day simple moving average of $2.56.

Coty (NYSE:COTY - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.04. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.53 billion. Coty had a negative net margin of 9.74% and a positive return on equity of 7.11%. The company's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.12 earnings per share. On average, analysts expect that Coty will post 0.34 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of COTY. Assenagon Asset Management S.A. boosted its position in Coty by 11.1% in the second quarter. Assenagon Asset Management S.A. now owns 6,871,724 shares of the company's stock valued at $14,843,000 after buying an additional 684,052 shares during the last quarter. M&G PLC increased its stake in shares of Coty by 7.9% in the third quarter. M&G PLC now owns 3,675,063 shares of the company's stock worth $9,592,000 after acquiring an additional 268,653 shares during the period. Royce & Associates LP raised its holdings in shares of Coty by 495.9% during the third quarter. Royce & Associates LP now owns 2,979,390 shares of the company's stock worth $7,776,000 after purchasing an additional 2,479,390 shares during the last quarter. Pacer Advisors Inc. boosted its holdings in Coty by 2,300.9% in the first quarter. Pacer Advisors Inc. now owns 2,953,407 shares of the company's stock valued at $5,936,000 after purchasing an additional 2,830,397 shares during the last quarter. Finally, First Trust Advisors LP boosted its holdings in Coty by 827.5% in the first quarter. First Trust Advisors LP now owns 2,018,890 shares of the company's stock valued at $4,058,000 after purchasing an additional 1,801,209 shares during the last quarter. 42.36% of the stock is owned by institutional investors and hedge funds.

Coty Company Profile

Coty is a global beauty company that develops, manufactures, markets and distributes fragrances, cosmetics, skin care and body-care products. Its portfolio spans prestige and consumer beauty, with products sold in markets around the world. The company's brands include CoverGirl, Rimmel London, Max Factor and Sally Hansen. Coty also produces fragrances and beauty products under license for a range of fashion and lifestyle brands. Founded in Paris in 1904 by perfumer François Coty, the company has grown from a fragrance business into a broad-based beauty group.

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