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

Coty Inc. (NYSE:COTY) shares gapped down prior to trading on Tuesday following a dissappointing 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 traded.

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

Analysts Set New Price Targets

Several research firms have recently weighed in on COTY. Barclays reduced their target price on Coty from $13.00 to $12.00 and set an “equal weight” rating for the company in a report on Friday, April 12th. Canaccord Genuity Group started coverage on shares of Coty in a research report on Monday, April 15th. They set a “buy” rating and a $14.00 target price on the stock. Wells Fargo & Company increased their price target on shares of Coty from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research note on Friday, February 9th. TD Cowen dropped their price objective on shares of Coty from $16.00 to $13.00 and set a “buy” rating on the stock in a research note on Wednesday, April 17th. Finally, DA Davidson lowered their price target on Coty from $17.50 to $16.50 and set a “buy” rating on the stock in a report on Tuesday. Eight research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $13.14.

Insider Activity

In other news, Director Robert S. Singer sold 90,000 shares of Coty stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $12.56, for a total transaction 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 transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other Coty news, Director Robert S. Singer sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, March 6th. The shares were sold at an average price of $12.70, for a total transaction of $381,000.00. Following the completion of the transaction, the director now directly owns 120,000 shares in the company, valued at approximately $1,524,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert S. Singer sold 90,000 shares of the company’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $12.56, for a total transaction 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 disclosure for this sale can be found here. Insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Coty

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of Coty by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 39,776,331 shares of the company’s stock worth $494,022,000 after acquiring an additional 494,639 shares during the last quarter. Clearbridge Investments LLC lifted its holdings in Coty by 0.9% in the 4th quarter. Clearbridge Investments LLC now owns 14,745,121 shares of the company’s stock valued at $183,134,000 after purchasing an additional 136,292 shares in the last quarter. FIL Ltd boosted its stake in shares of Coty by 10.6% during the 4th quarter. FIL Ltd now owns 14,345,501 shares of the company’s stock worth $178,171,000 after purchasing an additional 1,375,857 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Coty by 3.8% during the third quarter. Ameriprise Financial Inc. now owns 11,060,293 shares of the company’s stock worth $121,331,000 after buying an additional 406,769 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Coty by 9.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 8,130,447 shares of the company’s stock valued at $100,985,000 after buying an additional 709,238 shares during the last quarter. Hedge funds and other institutional investors own 42.36% of the company’s stock.

Coty Stock Down 1.9 %

The firm has a market cap of $9.74 billion, a PE ratio of 47.33, a P/E/G ratio of 6.49 and a beta of 1.83. The company has a quick ratio of 0.58, a current ratio of 0.85 and a debt-to-equity ratio of 0.80. The firm’s 50 day moving average is $11.68 and its 200-day moving average is $11.61.

Coty Company Profile

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.