Coty (NYSE:COTY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Coty has lagged the industry in a year due to weakness in the Consumer Beauty unit. This along with supply-chain hurdles marred second-quarter fiscal 2019 results, wherein both top and bottom lines fell year over year. Revenues were hit by supply-chain woes in all units, with Consumer Beauty and Professional Beauty being especially weak. The Consumer Beauty unit has long been pressurized by supply-chain disruptions and persistent softness in mass beauty categories in the United States and Europe. While management is making efforts to revive this unit and mitigate supply-chain woes, we are yet to see if these can be fully countered in the near term. Nonetheless, Coty’s Luxury unit continued with its strong show in the second quarter, driven by the inclusion of Burberry and growth in core portfolio. Moreover, the company is on track with saving efforts, which provided some cushion to operating income.”
Several other analysts have also recently commented on the company. BMO Capital Markets raised Coty from a “market perform” rating to an “outperform” rating and set a $12.00 target price for the company in a research report on Thursday, November 15th. Citigroup set a $11.00 price objective on Coty and gave the company a “buy” rating in a research report on Friday, November 9th. Royal Bank of Canada reduced their price objective on Coty from $23.00 to $18.00 and set an “outperform” rating for the company in a research report on Thursday, November 8th. Morgan Stanley reissued an “equal weight” rating and set a $10.00 price objective (down previously from $14.50) on shares of Coty in a research report on Thursday, November 8th. Finally, JPMorgan Chase & Co. raised Coty from an “underweight” rating to a “neutral” rating and set a $7.00 price target for the company in a research report on Friday, January 4th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have assigned a buy rating to the company. Coty presently has a consensus rating of “Hold” and a consensus target price of $12.68.
Coty (NYSE:COTY) last issued its quarterly earnings results on Friday, February 8th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.02. The company had revenue of $2.51 billion for the quarter, compared to analysts’ expectations of $2.47 billion. Coty had a positive return on equity of 5.38% and a negative net margin of 13.58%. The firm’s revenue for the quarter was down 4.8% on a year-over-year basis. During the same period last year, the firm earned $0.32 EPS. As a group, research analysts expect that Coty will post 0.65 earnings per share for the current year.
In other Coty news, CEO Pierre Laubies acquired 2,308,447 shares of the company’s stock in a transaction dated Wednesday, November 14th. The shares were acquired at an average cost of $8.69 per share, for a total transaction of $20,060,404.43. Following the completion of the purchase, the chief executive officer now owns 2,308,447 shares of the company’s stock, valued at approximately $20,060,404.43. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Cosmetics B.V. Jab acquired 5,400,000 shares of the company’s stock in a transaction dated Friday, November 16th. The stock was acquired at an average price of $8.89 per share, for a total transaction of $48,006,000.00. Following the completion of the purchase, the insider now directly owns 294,508,041 shares of the company’s stock, valued at approximately $2,618,176,484.49. The disclosure for this purchase can be found here. Insiders acquired 11,023,447 shares of company stock valued at $97,704,004 in the last ninety days. Insiders own 1.20% of the company’s stock.
Several institutional investors have recently bought and sold shares of the company. Delta Asset Management LLC TN increased its stake in shares of Coty by 12.5% in the fourth quarter. Delta Asset Management LLC TN now owns 10,825 shares of the company’s stock worth $71,000 after purchasing an additional 1,200 shares during the period. Daiwa Securities Group Inc. increased its stake in shares of Coty by 9.7% in the fourth quarter. Daiwa Securities Group Inc. now owns 19,235 shares of the company’s stock worth $126,000 after purchasing an additional 1,700 shares during the period. M&T Bank Corp increased its stake in shares of Coty by 14.8% in the fourth quarter. M&T Bank Corp now owns 18,044 shares of the company’s stock worth $119,000 after purchasing an additional 2,324 shares during the period. Russell Investments Group Ltd. increased its stake in shares of Coty by 34.2% in 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 during the period. Finally, Nissay Asset Management Corp Japan ADV increased its stake in shares of Coty by 13.5% in the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 50,712 shares of the company’s stock worth $333,000 after purchasing an additional 6,049 shares during the period. Institutional investors and hedge funds own 66.98% of the company’s stock.
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.
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