Coty (NYSE:COTY) Stock Falls 5.4% – Here’s Why

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

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on COTY shares. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $3.00 price target on shares of Coty in a report on Friday, August 21st. Citigroup increased their price objective on shares of Coty from $2.80 to $3.00 and gave the company a “neutral” rating in a report on Wednesday, October 14th. Weiss Ratings raised shares of Coty from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 16th. Morgan Stanley boosted their price target on shares of Coty from $2.50 to $2.75 and gave the stock an “equal weight” rating in a research note on Tuesday, August 25th. Finally, Jefferies Financial Group increased their price target on Coty from $2.40 to $2.95 and gave the company a “buy” rating in a research note on Monday. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $3.21.

Coty Trading Down 0.8%

The company has a quick ratio of 0.42, a current ratio of 0.75 and a debt-to-equity ratio of 0.96. The firm has a market cap of $2.80 billion, a P/E ratio of -4.54, a P/E/G ratio of 0.59 and a beta of 0.90. The company’s 50 day simple moving average is $2.80 and its 200-day simple moving average is $2.47.

Coty (NYSE:COTY) last released its earnings results on Wednesday, August 19th. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates 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 business had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the previous year, the business earned ($0.05) EPS. The business’s revenue for the quarter 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, research analysts predict that Coty will post 0.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Nisa Investment Advisors LLC grew its stake in shares of Coty by 32.6% during the third quarter. Nisa Investment Advisors LLC now owns 23,067 shares of the company’s stock worth $60,000 after acquiring an additional 5,668 shares during the last quarter. Abel Hall LLC lifted its position in Coty by 11.5% during the 3rd quarter. Abel Hall LLC now owns 84,937 shares of the company’s stock worth $222,000 after acquiring an additional 8,785 shares during the period. Elmwood Wealth Management Inc. acquired a new position in shares of Coty in the third quarter valued at about $34,000. WINTON GROUP Ltd acquired a new stake in shares of Coty during the second quarter worth about $48,000. Finally, HB Wealth Management LLC purchased a new stake in Coty in the second quarter valued at approximately $57,000. Hedge funds and other institutional investors own 42.36% of the company’s stock.

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.