Coty (COTY) Raised to Hold at Zacks Investment Research

Coty (NYSE:COTY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.

According to Zacks, “Coty has lagged the industry in the past year due to continued weakness in its Consumer Beauty unit, which along with supply-chain hurdles marred first-quarter fiscal 2019 results. During the quarter, revenues missed the consensus mark due to supply-chain hurdles in all divisions. In fact, the Consumer Beauty unit also saw underlying weakness, owing to soft mass beauty categories, competition and weakness in some developed markets. The unit is also expected to remain soft in the second quarter. Nonetheless, management expects reverting to LFL sales growth in Luxury and Professional Beauty units, which witnessed underlying growth in the first quarter on the back of robust innovations and solid demand. Moreover, the company is on track with saving efforts, which provided some cushion to operating income. Also, Coty is making solid efforts to solve the supply-chain woes, though full recovery is expected in the fiscal third quarter.”

COTY has been the subject of a number of other reports. Citigroup decreased their price objective on Coty from $18.00 to $15.00 and set a “buy” rating for the company in a research note on Thursday, August 23rd. Wells Fargo & Co reduced their target price on Coty from $14.00 to $11.00 and set a “hold” rating on the stock in a research report on Wednesday, August 22nd. Royal Bank of Canada reduced their target price on Coty from $23.00 to $18.00 and set an “outperform” rating on the stock in a research report on Thursday, November 8th. JPMorgan Chase & Co. set a $11.00 target price on Coty and gave the company a “sell” rating in a research report on Friday, September 7th. Finally, Barclays set a $15.00 target price on Coty and gave the company a “hold” rating in a research report on Wednesday, August 22nd. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and five have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $12.86.

Shares of NYSE COTY traded up $0.27 during mid-day trading on Monday, reaching $8.61. 96,580 shares of the company were exchanged, compared to its average volume of 13,064,298. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.99 and a quick ratio of 0.66. The stock has a market capitalization of $6.26 billion, a P/E ratio of 12.48, a price-to-earnings-growth ratio of 1.81 and a beta of 0.41. Coty has a 1 year low of $8.15 and a 1 year high of $21.68.

Coty (NYSE:COTY) last issued its quarterly earnings data on Wednesday, November 7th. The company reported $0.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.07 by $0.04. The firm had revenue of $2.03 billion during the quarter, compared to analysts’ expectations of $2.17 billion. Coty had a positive return on equity of 5.72% and a negative net margin of 1.75%. The firm’s quarterly revenue was down 9.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.10 EPS. As a group, equities research analysts anticipate that Coty will post 0.67 earnings per share for the current fiscal year.

In other news, major shareholder Cosmetics B.V. Jab acquired 5,400,000 shares of the business’s stock in a transaction dated Friday, November 16th. The shares were acquired at an average cost of $8.89 per share, with a total value of $48,006,000.00. Following the completion of the acquisition, the insider now owns 294,508,041 shares of the company’s stock, valued at $2,618,176,484.49. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Pierre Laubies acquired 2,308,447 shares of the business’s stock in a transaction dated Wednesday, November 14th. The stock was purchased at an average cost of $8.69 per share, for a total transaction of $20,060,404.43. Following the completion of the acquisition, the chief executive officer now directly owns 2,308,447 shares of the company’s stock, valued at approximately $20,060,404.43. The disclosure for this purchase can be found here. Insiders bought 11,023,447 shares of company stock worth $97,704,004 over the last three months. Corporate insiders own 1.20% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Nissay Asset Management Corp Japan ADV boosted its stake in shares of Coty by 10.7% in the second quarter. Nissay Asset Management Corp Japan ADV now owns 43,470 shares of the company’s stock worth $613,000 after buying an additional 4,200 shares during the last quarter. Russell Investments Group Ltd. boosted its position in Coty by 34.2% during the third quarter. Russell Investments Group Ltd. now owns 23,548 shares of the company’s stock worth $296,000 after purchasing an additional 6,000 shares in the last quarter. Cadence Capital Management LLC boosted its position in Coty by 18.0% during the second quarter. Cadence Capital Management LLC now owns 39,551 shares of the company’s stock worth $558,000 after purchasing an additional 6,021 shares in the last quarter. Arbor Wealth Management LLC boosted its position in Coty by 2.5% during the second quarter. Arbor Wealth Management LLC now owns 271,386 shares of the company’s stock worth $3,149,000 after purchasing an additional 6,747 shares in the last quarter. Finally, Riverhead Capital Management LLC boosted its position in Coty by 43.0% during the second quarter. Riverhead Capital Management LLC now owns 27,562 shares of the company’s stock worth $389,000 after purchasing an additional 8,291 shares in the last quarter. 66.21% of the stock is currently owned by institutional investors and hedge funds.

About Coty

Coty Inc, together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates in three segments: Luxury, Consumer Beauty, and Professional Beauty. The Luxury segment offers prestige fragrances, and skincare and cosmetics products through various retailers, including perfumeries, department stores, and duty-free shops under the Alexander McQueen, Balenciaga, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Lacoste, Lancaster, Marc Jacobs, Miu Miu, philosophy, Stella McCartney, and Tiffany & Co brands.

Read More: Rule of 72

Get a free copy of the Zacks research report on Coty (COTY)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Coty (NYSE:COTY)

Receive News & Ratings for Coty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coty and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit