Coty (NYSE:COTY) Trading Down 5.2% After Analyst Downgrade

Coty (NYSE:COTY) was down 5.2% during mid-day trading on Monday after Citigroup lowered their price target on the stock from $3.50 to $3.00. Citigroup currently has a neutral rating on the stock. Coty traded as low as $2.50 and last traded at $2.5220. Approximately 2,098,734 shares were traded during trading, a decline of 76% from the average daily volume of 8,681,550 shares. The stock had previously closed at $2.66.

Other analysts also recently issued reports about the stock. Evercore downgraded shares of Coty from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Coty in a report on Wednesday, January 21st. Rothschild & Co Redburn set a $3.60 target price on shares of Coty in a report on Tuesday, November 25th. Canaccord Genuity Group set a $2.50 price target on Coty in a research report on Monday. Finally, Santander lowered Coty to a “neutral” rating in a research report on Tuesday, December 23rd. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $4.51.

Coty News Summary

Here are the key news stories impacting Coty this week:

• Positive Sentiment: RBC cut its price target from $10.00 to $8.00 but kept an Outperform rating — the new target still implies a large upside, which can attract speculative buying and recovery interest. Read More.
• Positive Sentiment: Company management highlighted an AI-fueled turnaround theme on the recent earnings call and outlined initiatives to address margin squeeze — this gives a constructive narrative for longer-term improvement if execution follows. Read More.
• Positive Sentiment: Coty reported slight Q2 revenue growth and new leadership laid out portfolio-simplification and channel-shift plans — incremental top-line progress plus active restructuring can be seen as a constructive step. Read More.
• Neutral Sentiment: Analysts and industry pieces are urging focus on international revenue patterns — these trends drive Wall Street modeling but are not an immediate catalyst by themselves. Read More.
• Neutral Sentiment: Major brokers (J.P. Morgan, Morgan Stanley, Citi) have maintained Hold/Neutral ratings, signaling limited near-term conviction from institutional analysts and keeping upside consensus muted. Read More.
• Negative Sentiment: Citigroup trimmed its price target from $3.50 to $3.00 and kept a Neutral rating — another downward revision that adds selling pressure and reduces near-term upside expectations. Read More.
• Negative Sentiment: Weak earnings and margin pressure prompted a new 12-month low and analyst caution; coverage notes management is shifting channels and simplifying the portfolio to arrest margin declines, but near-term profit pressure remains. Read More. and Read More.
• Negative Sentiment: Coty ended a licensing deal with Orveda after four years — loss of a license can reduce near-term brand/royalty income and adds to restructuring noise. Read More.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of COTY. Credit Agricole S A purchased a new stake in shares of Coty during the third quarter valued at $63,824,000. Norges Bank purchased a new stake in shares of Coty during the 2nd quarter valued at about $52,449,000. Two Sigma Investments LP boosted its holdings in shares of Coty by 793.5% during the 3rd quarter. Two Sigma Investments LP now owns 4,401,554 shares of the company’s stock valued at $17,782,000 after acquiring an additional 3,908,955 shares during the last quarter. Squarepoint Ops LLC purchased a new position in shares of Coty during the second quarter valued at approximately $15,829,000. Finally, Assenagon Asset Management S.A. lifted its position in Coty by 6,340.5% during the third quarter. Assenagon Asset Management S.A. now owns 2,883,926 shares of the company’s stock valued at $11,651,000 after purchasing an additional 2,839,148 shares during the period. 42.36% of the stock is owned by institutional investors.

Coty Stock Down 4.1%

The company has a market cap of $2.23 billion, a PE ratio of -4.11, a PEG ratio of 0.20 and a beta of 0.95. The company has a quick ratio of 0.52, a current ratio of 0.79 and a debt-to-equity ratio of 0.81. The company’s fifty day moving average is $3.20 and its 200-day moving average is $3.82.

Coty (NYSE:COTY) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.04). Coty had a negative net margin of 9.13% and a positive return on equity of 5.38%. The firm had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.66 billion. During the same period in the previous year, the company earned $0.11 earnings per share. Coty’s quarterly revenue was up .5% compared to the same quarter last year. On average, analysts predict that Coty will post 0.39 EPS for the current year.

Coty Company Profile

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty’s portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company’s product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.