Coty (NYSE:COTY) Shares Down 5.2% After Analyst Downgrade

Coty (NYSE:COTY) shares traded down 5.2% during mid-day trading on Monday after Citigroup lowered their price target on the stock from $3.50 to $3.00. Citigroup currently has a neutral rating on the stock. Coty traded as low as $2.50 and last traded at $2.5220. 2,098,734 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 8,681,550 shares. The stock had previously closed at $2.66.

COTY has been the subject of several other research reports. Rothschild & Co Redburn set a $3.60 target price on Coty in a research note on Tuesday, November 25th. Morgan Stanley set a $3.50 price objective on shares of Coty in a research note on Monday. Royal Bank Of Canada decreased their target price on shares of Coty from $10.00 to $8.00 and set an “outperform” rating on the stock in a report on Monday. The Goldman Sachs Group reissued a “neutral” rating and issued a $2.50 price target on shares of Coty in a report on Monday. Finally, Evercore cut shares of Coty from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 23rd. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $4.51.

Trending Headlines about Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: RBC cut its price target from $10.00 to $8.00 but kept an Outperform rating — the new target still implies a large upside, which can attract speculative buying and recovery interest. Read More.
• Positive Sentiment: Company management highlighted an AI-fueled turnaround theme on the recent earnings call and outlined initiatives to address margin squeeze — this gives a constructive narrative for longer-term improvement if execution follows. Read More.
• Positive Sentiment: Coty reported slight Q2 revenue growth and new leadership laid out portfolio-simplification and channel-shift plans — incremental top-line progress plus active restructuring can be seen as a constructive step. Read More.
• Neutral Sentiment: Analysts and industry pieces are urging focus on international revenue patterns — these trends drive Wall Street modeling but are not an immediate catalyst by themselves. Read More.
• Neutral Sentiment: Major brokers (J.P. Morgan, Morgan Stanley, Citi) have maintained Hold/Neutral ratings, signaling limited near-term conviction from institutional analysts and keeping upside consensus muted. Read More.
• Negative Sentiment: Citigroup trimmed its price target from $3.50 to $3.00 and kept a Neutral rating — another downward revision that adds selling pressure and reduces near-term upside expectations. Read More.
• Negative Sentiment: Weak earnings and margin pressure prompted a new 12-month low and analyst caution; coverage notes management is shifting channels and simplifying the portfolio to arrest margin declines, but near-term profit pressure remains. Read More. and Read More.
• Negative Sentiment: Coty ended a licensing deal with Orveda after four years — loss of a license can reduce near-term brand/royalty income and adds to restructuring noise. Read More.

Institutional Investors Weigh In On Coty

Hedge funds and other institutional investors have recently modified their holdings of the stock. Credit Agricole S A bought a new position in Coty during the 3rd quarter worth approximately $63,824,000. Norges Bank purchased a new position in shares of Coty in the second quarter worth $52,449,000. Two Sigma Investments LP raised its holdings in Coty by 793.5% during the 3rd quarter. Two Sigma Investments LP now owns 4,401,554 shares of the company’s stock valued at $17,782,000 after buying an additional 3,908,955 shares during the last quarter. Squarepoint Ops LLC bought a new stake in Coty during the 2nd quarter valued at $15,829,000. Finally, Assenagon Asset Management S.A. boosted its position in Coty by 6,340.5% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,883,926 shares of the company’s stock valued at $11,651,000 after buying an additional 2,839,148 shares during the period. Institutional investors own 42.36% of the company’s stock.

Coty Stock Performance

The business’s fifty day simple moving average is $3.20 and its 200-day simple moving average is $3.82. The firm has a market cap of $2.23 billion, a P/E ratio of -4.11, a price-to-earnings-growth ratio of 0.20 and a beta of 0.95. The company has a current ratio of 0.79, a quick ratio of 0.52 and a debt-to-equity ratio of 0.81.

Coty (NYSE:COTY) last posted its earnings results on Thursday, February 5th. The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.04). Coty had a positive return on equity of 5.38% and a negative net margin of 9.13%.The firm had revenue of $1.68 billion for the quarter, compared to analysts’ expectations of $1.66 billion. During the same quarter in the prior year, the company posted $0.11 earnings per share. The business’s revenue for the quarter was up .5% on a year-over-year basis. As a group, sell-side analysts expect that Coty will post 0.39 earnings per share for the current year.

About Coty

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.