Coty (NYSE:COTY) Trading Down 7% - Should You Sell?

Key Points

• Coty shares fell 7% to approximately $2.73 in mid-day trading, with volume significantly below the stock’s average daily level.
• Analyst sentiment remains cautious: 12 analysts rate the stock Hold and two rate it Sell, resulting in an average “Reduce” rating and a consensus price target of $3.39.
• Coty’s latest quarter showed revenue growth of 1.3% to $1.27 billion, exceeding estimates, but adjusted EPS of a $0.02 loss missed expectations; institutional investors own 42.36% of the company.

Coty (NYSE:COTY - Get Free Report)'s share price traded down 7% during mid-day trading on Tuesday . The company traded as low as $2.73 and last traded at $2.7250. 1,708,667 shares were traded during trading, a decline of 82% from the average daily volume of 9,501,474 shares. The stock had previously closed at $2.93.

Analyst Ratings Changes

COTY has been the subject of a number of analyst reports. Royal Bank Of Canada downgraded shares of Coty from an "outperform" rating to a "sector perform" rating and set a $3.00 price objective for the company. in a research report on Thursday, August 20th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $2.60 target price on shares of Coty in a research note on Thursday, August 20th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $3.00 price target on shares of Coty in a report on Friday, August 21st. Weiss Ratings restated a "sell (e+)" rating on shares of Coty in a research note on Friday, August 7th. Finally, Morgan Stanley raised their price objective on Coty from $2.50 to $2.75 and gave the company an "equal weight" rating in a research report on Tuesday, August 25th. Twelve investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $3.39.

Coty Stock Down 7.3%

The firm has a market cap of $2.39 billion, a P/E ratio of -3.88, a P/E/G ratio of 0.57 and a beta of 0.95. The firm's fifty day moving average is $2.65 and its 200 day moving average is $2.36. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.42 and a current ratio of 0.75.

Coty (NYSE:COTY - Get Free Report) last issued its quarterly earnings data 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). Coty had a positive return on equity of 5.68% and a negative net margin of 10.42%.The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter last year, the business earned ($0.05) earnings per share. The company's revenue was up 1.3% on a year-over-year basis. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. As a group, equities research analysts anticipate that Coty will post 0.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Coty

A number of institutional investors have recently modified their holdings of COTY. Corient Private Wealth LLC grew its position in shares of Coty by 16.6% during the 2nd quarter. Corient Private Wealth LLC now owns 16,062 shares of the company's stock worth $75,000 after purchasing an additional 2,286 shares in the last quarter. Public Employees Retirement System of Ohio boosted its stake in shares of Coty by 3.2% in the third quarter. Public Employees Retirement System of Ohio now owns 117,781 shares of the company's stock valued at $476,000 after buying an additional 3,616 shares during the period. Osaic Holdings Inc. boosted its stake in shares of Coty by 30.5% in the second quarter. Osaic Holdings Inc. now owns 15,795 shares of the company's stock valued at $73,000 after buying an additional 3,689 shares during the period. Aigen Investment Management LP grew its position in Coty by 6.1% during the fourth quarter. Aigen Investment Management LP now owns 76,048 shares of the company's stock worth $234,000 after buying an additional 4,357 shares in the last quarter. Finally, Wells Fargo & Company MN increased its stake in Coty by 23.5% during the 4th quarter. Wells Fargo & Company MN now owns 24,525 shares of the company's stock worth $76,000 after acquiring an additional 4,662 shares during the period. Institutional investors own 42.36% of the company's stock.

Coty Company Profile

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty's portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company's product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.

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