Coty (NYSE:COTY) Shares Gap Down Following Weak Earnings

Coty Inc. (NYSE:COTY)’s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $11.50, but opened at $11.08. Coty shares last traded at $11.11, with a volume of 1,838,172 shares changing hands.

The company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.01). Coty had a return on equity of 11.91% and a net margin of 5.39%. The company had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the prior year, the company posted $0.19 earnings per share. The business’s revenue was up 7.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

COTY has been the topic of several recent analyst reports. Canaccord Genuity Group assumed coverage on shares of Coty in a report on Monday, April 15th. They issued a “buy” rating and a $14.00 price objective on the stock. Canaccord Genuity Group initiated coverage on shares of Coty in a research note on Monday, April 15th. They issued a “buy” rating and a $14.00 price target on the stock. DA Davidson reduced their price target on shares of Coty from $17.50 to $16.50 and set a “buy” rating for the company in a research report on Tuesday. TD Cowen reduced their price objective on Coty from $16.00 to $13.00 and set a “buy” rating for the company in a research note on Wednesday, April 17th. Finally, Wells Fargo & Company lifted their target price on Coty from $11.00 to $12.00 and gave the company an “equal weight” rating in a research note on Friday, February 9th. Eight investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $13.14.

Insider Transactions at Coty

In related news, Director Robert S. Singer sold 90,000 shares of the stock in a transaction on Monday, March 4th. The stock was sold at an average price of $12.56, for a total value of $1,130,400.00. Following the completion of the sale, the director now directly owns 169,982 shares in the company, valued at approximately $2,134,973.92. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, Director Robert S. Singer sold 90,000 shares of the business’s stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $12.56, for a total value of $1,130,400.00. Following the transaction, the director now owns 169,982 shares in the company, valued at $2,134,973.92. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Robert S. Singer sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $12.70, for a total value of $381,000.00. Following the sale, the director now owns 120,000 shares of the company’s stock, valued at approximately $1,524,000. The disclosure for this sale can be found here. Company insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Coty

Hedge funds have recently bought and sold shares of the company. BluePath Capital Management LLC acquired a new stake in shares of Coty during the 3rd quarter valued at approximately $29,000. DekaBank Deutsche Girozentrale bought a new stake in shares of Coty during the 3rd quarter valued at about $31,000. Pathstone Family Office LLC acquired a new stake in Coty during the third quarter worth about $118,000. Fulton Bank N.A. bought a new position in Coty in the fourth quarter worth about $131,000. Finally, Stratos Wealth Partners LTD. acquired a new position in Coty in the third quarter valued at approximately $136,000. 42.36% of the stock is currently owned by institutional investors and hedge funds.

Coty Price Performance

The firm has a market capitalization of $10.01 billion, a price-to-earnings ratio of 31.60, a PEG ratio of 6.49 and a beta of 1.83. The business has a 50-day moving average price of $11.76 and a two-hundred day moving average price of $11.61. The company has a current ratio of 0.85, a quick ratio of 0.58 and a debt-to-equity ratio of 0.80.

About Coty

Coty Inc, together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates through Prestige and Consumer Beauty segments. The company provides fragrance, color cosmetics, and skin and body care products. It offers Prestige segment products primarily through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, philosophy, SKKN BY KIM, and Tiffany & Co brands.