Zacks Investment Research upgraded shares of Coty (NYSE:COTY) from a sell rating to a hold rating in a research report sent to investors on Monday morning.
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.”
A number of other research analysts have also recently issued reports on COTY. Citigroup decreased their target price on Coty from $18.00 to $15.00 and set a buy rating for the company in a research note on Thursday, August 23rd. Barclays set a $15.00 target price on Coty and gave the company a hold rating in a research note on Wednesday, August 22nd. Wells Fargo & Co decreased their target price on Coty from $14.00 to $11.00 and set a hold rating for the company in a research note on Wednesday, August 22nd. BMO Capital Markets cut Coty from an outperform rating to a hold rating and decreased their target price for the company from $18.00 to $12.00 in a research note on Tuesday, August 21st. Finally, Morgan Stanley reaffirmed an equal weight rating and set a $10.00 price objective (down from $14.50) on shares of Coty in a research report on Thursday, November 8th. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company’s stock. Coty has a consensus rating of Hold and a consensus target price of $12.86.
Coty (NYSE:COTY) last posted its earnings results on Wednesday, November 7th. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.04. Coty had a positive return on equity of 5.72% and a negative net margin of 1.75%. The firm had revenue of $2.03 billion during the quarter, compared to analysts’ expectations of $2.17 billion. During the same period in the previous year, the firm earned $0.10 earnings per share. The company’s revenue was down 9.2% on a year-over-year basis. As a group, equities research analysts anticipate that Coty will post 0.67 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 14th. Stockholders of record on Friday, November 30th will be given a dividend of $0.125 per share. The ex-dividend date is Thursday, November 29th. This represents a $0.50 annualized dividend and a dividend yield of 6.52%. Coty’s dividend payout ratio is currently 72.46%.
In other news, major shareholder Cosmetics B.V. Jab acquired 5,400,000 shares of Coty stock in a transaction dated Friday, November 16th. The stock was bought at an average cost of $8.89 per share, with a total value of $48,006,000.00. Following the completion of the transaction, the insider now directly owns 294,508,041 shares of the company’s stock, valued at $2,618,176,484.49. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Robert S. Singer acquired 45,000 shares of Coty stock in a transaction dated Thursday, November 15th. The shares were purchased at an average cost of $8.30 per share, with a total value of $373,500.00. Following the completion of the transaction, the director now directly owns 235,000 shares of the company’s stock, valued at $1,950,500. The disclosure for this purchase can be found here. Insiders have bought 11,023,447 shares of company stock valued at $97,704,004 over the last ninety days. 1.20% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of COTY. Morgan Stanley boosted its position in Coty by 160.5% during the third quarter. Morgan Stanley now owns 488,714 shares of the company’s stock valued at $6,139,000 after purchasing an additional 301,094 shares during the last quarter. Standard Life Aberdeen plc boosted its position in Coty by 12.2% during the third quarter. Standard Life Aberdeen plc now owns 125,731 shares of the company’s stock valued at $1,579,000 after purchasing an additional 13,688 shares during the last quarter. Nordea Investment Management AB boosted its position in Coty by 791.1% during the third quarter. Nordea Investment Management AB now owns 250,852 shares of the company’s stock valued at $3,150,000 after purchasing an additional 222,700 shares during the last quarter. Mackenzie Financial Corp boosted its position in Coty by 43.6% during the third quarter. Mackenzie Financial Corp now owns 12,742,524 shares of the company’s stock valued at $160,046,000 after purchasing an additional 3,868,062 shares during the last quarter. Finally, Putnam Investments LLC boosted its position in Coty by 0.6% during the third quarter. Putnam Investments LLC now owns 3,208,476 shares of the company’s stock valued at $40,299,000 after purchasing an additional 20,521 shares during the last quarter. 66.21% of the stock is owned by institutional investors.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
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.