Coty (NYSE:COTY) Stock Falls 5.4% - Time to Sell?

Key Points

• Coty shares fell 5.4% to approximately $3.05 in midday trading, with volume below the stock’s average session level.
• Analyst sentiment remains cautious: the consensus rating is “Reduce”, based on one Buy, ten Hold, and two Sell ratings, with an average price target of $3.21.
• Coty missed quarterly EPS expectations, reporting a $0.02 loss per share versus a projected $0.01 loss, although revenue rose 1.3% year over year to $1.27 billion. Institutional investors collectively own 42.36% of the company.

Coty (NYSE:COTY - Get Free Report)'s share price fell 5.4% during mid-day trading on Wednesday. The stock traded as low as $3.05 and last traded at $3.0450. Approximately 3,678,637 shares were traded during trading, a decline of 58% from the average session volume of 8,825,097 shares. The stock had previously closed at $3.22.

Wall Street Analysts Forecast Growth

COTY has been the topic of several research analyst reports. Weiss Ratings raised shares of Coty from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday. Morgan Stanley raised their target price on shares of Coty from $2.50 to $2.75 and gave the company an "equal weight" rating in a research note on Tuesday, August 25th. Citigroup raised their target price on shares of Coty from $2.80 to $3.00 and gave the company a "neutral" rating in a research note on Wednesday, October 14th. Royal Bank Of Canada downgraded shares of Coty from an "outperform" rating to a "sector perform" rating and set a $3.00 price target on the stock. in a report on Thursday, August 20th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $3.00 price target on shares of Coty in a research note on Friday, August 21st. One equities research analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $3.21.

Coty Stock Performance

The business's fifty day moving average price is $2.78 and its two-hundred day moving average price is $2.46. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.42 and a current ratio of 0.75. The stock has a market capitalization of $2.68 billion, a P/E ratio of -4.35, a P/E/G ratio of 0.62 and a beta of 0.90.

Coty (NYSE:COTY - Get Free Report) last announced its earnings results on Wednesday, August 19th. The company reported ($0.02) earnings per share (EPS) 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 analysts' expectations of $1.19 billion. Coty had a negative net margin of 10.42% and a positive return on equity of 5.68%. The firm's quarterly revenue was up 1.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.05) earnings per share. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. As a group, sell-side analysts forecast that Coty will post 0.31 earnings per share for the current year.

Institutional Investors Weigh In On Coty

Several institutional investors have recently modified their holdings of COTY. Pacer Advisors Inc. grew its holdings in Coty by 2,300.9% during the 1st 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. First Trust Advisors LP raised its position in Coty by 827.5% in the 1st quarter. First Trust Advisors LP now owns 2,018,890 shares of the company's stock worth $4,058,000 after purchasing an additional 1,801,209 shares during the period. Assenagon Asset Management S.A. lifted its stake in Coty by 37.3% in the first quarter. Assenagon Asset Management S.A. now owns 6,187,672 shares of the company's stock worth $12,437,000 after purchasing an additional 1,679,632 shares during the last quarter. Maverick Capital Ltd. bought a new stake in Coty in the first quarter worth about $2,536,000. Finally, Renaissance Technologies LLC boosted its position in shares of Coty by 177.6% during the first quarter. Renaissance Technologies LLC now owns 1,311,687 shares of the company's stock valued at $2,636,000 after buying an additional 839,257 shares during the period. 42.36% of the stock is 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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