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

Coty Inc. (NYSE:COTY)’s stock 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 traded.

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on COTY. Barclays lowered their price objective on shares of Coty from $13.00 to $12.00 and set an “equal weight” rating on the stock 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 issued a “buy” rating and a $14.00 price target on the stock. Royal Bank of Canada reissued an “outperform” rating and set a $14.00 price objective on shares of Coty in a report on Friday, February 9th. Wells Fargo & Company raised their target price on Coty from $11.00 to $12.00 and gave the company an “equal weight” rating in a report on Friday, February 9th. Finally, Canaccord Genuity Group began coverage on Coty in a report on Monday, April 15th. They set a “buy” rating and a $14.00 price target for the company. Eight equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, Coty has an average rating of “Hold” and an average price target of $13.14.

Insider Transactions at Coty

In related news, Director Robert S. Singer sold 30,000 shares of the stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $12.70, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, Director Robert S. Singer sold 30,000 shares of the company’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 transaction 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 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 firm’s stock in a transaction 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 transaction, the director now directly owns 169,982 shares of the company’s stock, valued at $2,134,973.92. The disclosure for this sale can be found here. Corporate insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Coty

Institutional investors have recently added to or reduced their stakes in the business. Entropy Technologies LP purchased a new position in Coty in the 1st quarter worth approximately $477,000. Edmond DE Rothschild Holding S.A. boosted its stake in Coty by 2.1% in the first quarter. Edmond DE Rothschild Holding S.A. now owns 2,677,280 shares of the company’s stock worth $31,625,000 after buying an additional 55,000 shares in the last quarter. Avantax Advisory Services Inc. raised its stake in shares of Coty by 3.1% during the first quarter. Avantax Advisory Services Inc. now owns 65,960 shares of the company’s stock worth $789,000 after acquiring an additional 2,012 shares in the last quarter. Swiss National Bank boosted its stake in shares of Coty by 0.3% in the 1st quarter. Swiss National Bank now owns 792,401 shares of the company’s stock valued at $9,477,000 after purchasing an additional 2,300 shares in the last quarter. Finally, SG Americas Securities LLC raised its position in Coty by 985.5% in the 1st quarter. SG Americas Securities LLC now owns 625,808 shares of the company’s stock worth $7,485,000 after purchasing an additional 568,156 shares during the period. 42.36% of the stock is currently owned by institutional investors.

Coty Price Performance

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

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.