Coty (NYSE:COTY) Shares Down 3.6% Following Analyst Downgrade

Coty (NYSE:COTY) was down 3.6% on Friday after Royal Bank Of Canada downgraded the stock from an outperform rating to a sector perform rating. Royal Bank Of Canada now has a $3.00 price target on the stock. Coty traded as low as $2.63 and last traded at $2.65. 1,949,743 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 9,700,891 shares. The stock had previously closed at $2.75.

A number of other analysts have also commented on the company. TD Cowen boosted their price target on Coty from $2.30 to $2.90 and gave the company a “hold” rating in a report on Thursday, May 7th. Morgan Stanley set a $2.50 target price on Coty in a research report on Thursday, May 7th. Citigroup boosted their target price on Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Coty in a research report on Friday, August 7th. Fourteen research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $3.35.

Key Coty News

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fourth-quarter revenue rose approximately 1% to $1.27 billion, exceeding analysts’ expectations by about $70 million. Prestige revenue increased 1% to $771.8 million, supported by resilient fragrance demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Cash generation remained a relative strength: fiscal-year operating cash flow reached $537.8 million and free cash flow totaled $348.2 million. Coty also expects approximately $400 million in proceeds, plus inventory-related proceeds, from transitioning the Gucci Beauty license back to Kering. Coty Announces Fourth Quarter Fiscal Year 2026 Results
• Positive Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1. The company said its Coty.Curated strategy will emphasize innovation, brand investment and a more focused portfolio, potentially improving execution over time. Coty Appoints Soraya Benchikh Chief Financial Officer
• Neutral Sentiment: Management characterized fiscal 2027 as a transition year while it reshapes the brand portfolio and completes the Gucci license transition. It expects full-year EBITDA and free cash flow to be broadly close to fiscal 2026 levels, but has not provided a full-year earnings forecast. Coty Targets Portfolio Growth by 2028
• Negative Sentiment: Adjusted fourth-quarter EPS was a $0.02 loss, wider than the expected $0.01 loss, while reported net loss expanded to $144.3 million. Fiscal 2026 revenue declined 2% to $5.81 billion, highlighting continuing margin and growth pressure. Coty’s Q4 Loss Wider Than Expected
• Negative Sentiment: Coty forecasts first-quarter fiscal 2027 like-for-like revenue to fall by a low- to mid-single-digit percentage and guided EPS to $0.11–$0.13, below the $0.14 consensus. Weaker Consumer Beauty demand and the loss of the Gucci license are major near-term overhangs. Coty Looks to Finish Strategic Review
• Negative Sentiment: Royal Bank of Canada downgraded Coty from “outperform” to “sector perform,” setting a $3.00 price target. The rating change reinforces concerns that the portfolio overhaul may limit near-term upside. The Fly analyst rating update

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Corient Private Wealth LLC grew its stake in Coty by 16.6% in the 2nd quarter. Corient Private Wealth LLC now owns 16,062 shares of the company’s stock valued at $75,000 after buying an additional 2,286 shares during the last quarter. Public Employees Retirement System of Ohio lifted its position in Coty by 3.2% during the third quarter. Public Employees Retirement System of Ohio now owns 117,781 shares of the company’s stock worth $476,000 after acquiring an additional 3,616 shares during the last quarter. Osaic Holdings Inc. lifted its position in Coty by 30.5% during the second quarter. Osaic Holdings Inc. now owns 15,795 shares of the company’s stock worth $73,000 after acquiring an additional 3,689 shares during the last quarter. Aigen Investment Management LP boosted its holdings in shares of 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 acquiring an additional 4,357 shares during the period. Finally, Wells Fargo & Company MN grew its position in shares of Coty by 23.5% in the fourth quarter. Wells Fargo & Company MN now owns 24,525 shares of the company’s stock valued at $76,000 after purchasing an additional 4,662 shares during the last quarter. 42.36% of the stock is currently owned by institutional investors.

Coty Stock Down 3.6%

The company has a market cap of $2.33 billion, a price-to-earnings ratio of -3.79, a P/E/G ratio of 0.87 and a beta of 0.97. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.82 and a quick ratio of 0.49. The firm has a 50-day moving average price of $2.44 and a 200 day moving average price of $2.35.

Coty (NYSE:COTY) last released its quarterly earnings results 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 firm 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 5.51% and a negative net margin of 10.42%.The business’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.05) earnings per share. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. Sell-side analysts predict that Coty will post 0.34 EPS for the current year.

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.