Zacks Investment Research upgraded shares of Coty (NYSE:COTY) from a sell rating to a hold rating in a report released on Friday.
According to Zacks, “Coty has lagged the industry in the past three months 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.”
Several other brokerages have also recently issued reports on COTY. Wells Fargo & Co set a $11.00 price objective on Coty and gave the stock a hold rating in a report on Thursday, September 13th. Morgan Stanley cut Coty from an overweight rating to a hold rating and reduced their price objective for the stock from $14.50 to $10.00 in a report on Wednesday, November 7th. BMO Capital Markets raised Coty from a market perform rating to an outperform rating and set a $12.00 price objective for the company in a report on Thursday, November 15th. Jefferies Financial Group set a $10.00 price objective on Coty and gave the stock a hold rating in a report on Wednesday, November 7th. Finally, Citigroup set a $11.00 price objective on Coty and gave the stock a buy rating in a report on Friday, November 9th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and five have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $12.41.
COTY stock traded up $0.05 during midday trading on Friday, hitting $7.24. 11,029,341 shares of the stock were exchanged, compared to its average volume of 10,474,900. The stock has a market cap of $5.53 billion, a PE ratio of 10.49, a P/E/G ratio of 1.62 and a beta of 0.71. Coty has a fifty-two week low of $5.91 and a fifty-two week high of $21.68. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.66 and a current ratio of 0.99.
Coty (NYSE:COTY) last issued its quarterly earnings data on Wednesday, November 7th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate 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%. Coty’s revenue was down 9.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.10 earnings per share. As a group, equities research analysts predict that Coty will post 0.66 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, December 14th. Stockholders of record on Friday, November 30th were issued a $0.125 dividend. The ex-dividend date of this dividend was Thursday, November 29th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 6.91%. Coty’s dividend payout ratio (DPR) is 72.46%.
In other Coty news, major shareholder Cosmetics B.V. Jab acquired 1,470,000 shares of the stock in a transaction dated Monday, November 19th. The stock was acquired at an average price of $9.23 per share, with a total value of $13,568,100.00. Following the completion of the transaction, the insider now directly owns 299,578,041 shares in the company, valued at $2,765,105,318.43. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Pierre Laubies acquired 2,308,447 shares of the stock in a transaction dated Wednesday, November 14th. The stock was acquired at an average cost of $8.69 per share, with a total value of $20,060,404.43. Following the transaction, the chief executive officer now owns 2,308,447 shares of the company’s stock, valued at $20,060,404.43. The disclosure for this purchase can be found here. Over the last three months, insiders bought 11,023,447 shares of company stock valued at $97,704,004. Insiders own 1.20% of the company’s stock.
Several large investors have recently made changes to their positions in the company. State of Alaska Department of Revenue grew its position in shares of Coty by 33.7% in the fourth quarter. State of Alaska Department of Revenue now owns 205,777 shares of the company’s stock valued at $1,348,000 after purchasing an additional 51,884 shares during the period. Morgan Stanley grew its position in shares of Coty by 160.5% in 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 period. Standard Life Aberdeen plc grew its position in shares of Coty by 12.2% in 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 period. Nordea Investment Management AB grew its position in shares of Coty by 791.1% in 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 period. Finally, Mackenzie Financial Corp grew its position in shares of Coty by 43.6% in 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 period. 66.19% of the stock is owned by institutional investors and hedge funds.
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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