Coty (NYSE:COTY) Shares Down 3.6% on Analyst Downgrade

Coty (NYSE:COTY)’s stock price fell 3.6% during trading on Friday after Royal Bank Of Canada downgraded the stock from an outperform rating to a sector perform rating. Royal Bank Of Canada now has a $3.00 price target on the stock. Coty traded as low as $2.63 and last traded at $2.65. 1,949,743 shares were traded during trading, a decline of 80% from the average daily volume of 9,700,891 shares. The stock had previously closed at $2.75.

COTY has been the subject of a number of other research reports. Citigroup boosted their price objective on shares of Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a report on Thursday, May 7th. TD Cowen lifted their price target on shares of Coty from $2.30 to $2.90 and gave the company a “hold” rating in a research report on Thursday, May 7th. Morgan Stanley set a $2.50 price target on Coty in a research note on Thursday, May 7th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Coty in a research report on Friday, August 7th. Fourteen investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $3.35.

Coty News Roundup

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fourth-quarter revenue rose approximately 1% to $1.27 billion, exceeding analysts’ expectations by about $70 million. Prestige revenue increased 1% to $771.8 million, supported by resilient fragrance demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Cash generation remained a relative strength: fiscal-year operating cash flow reached $537.8 million and free cash flow totaled $348.2 million. Coty also expects approximately $400 million in proceeds, plus inventory-related proceeds, from transitioning the Gucci Beauty license back to Kering. Coty Announces Fourth Quarter Fiscal Year 2026 Results
• Positive Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1. The company said its Coty.Curated strategy will emphasize innovation, brand investment and a more focused portfolio, potentially improving execution over time. Coty Appoints Soraya Benchikh Chief Financial Officer
• Neutral Sentiment: Management characterized fiscal 2027 as a transition year while it reshapes the brand portfolio and completes the Gucci license transition. It expects full-year EBITDA and free cash flow to be broadly close to fiscal 2026 levels, but has not provided a full-year earnings forecast. Coty Targets Portfolio Growth by 2028
• Negative Sentiment: Adjusted fourth-quarter EPS was a $0.02 loss, wider than the expected $0.01 loss, while reported net loss expanded to $144.3 million. Fiscal 2026 revenue declined 2% to $5.81 billion, highlighting continuing margin and growth pressure. Coty’s Q4 Loss Wider Than Expected
• Negative Sentiment: Coty forecasts first-quarter fiscal 2027 like-for-like revenue to fall by a low- to mid-single-digit percentage and guided EPS to $0.11–$0.13, below the $0.14 consensus. Weaker Consumer Beauty demand and the loss of the Gucci license are major near-term overhangs. Coty Looks to Finish Strategic Review
• Negative Sentiment: Royal Bank of Canada downgraded Coty from “outperform” to “sector perform,” setting a $3.00 price target. The rating change reinforces concerns that the portfolio overhaul may limit near-term upside. The Fly analyst rating update

Hedge Funds Weigh In On Coty

Hedge funds and other institutional investors have recently made changes to their positions in the company. Shay Capital LLC acquired a new stake in shares of Coty during the 2nd quarter worth approximately $46,000. FORA Capital LLC acquired a new position in Coty during the second quarter valued at approximately $47,000. Vident Advisory LLC acquired a new position in Coty during the second quarter valued at approximately $50,000. United Capital Financial Advisors LLC bought a new stake in Coty during the third quarter worth $43,000. Finally, Headlands Technologies LLC bought a new stake in Coty during the second quarter worth $53,000. 42.36% of the stock is currently owned by institutional investors and hedge funds.

Coty Stock Performance

The stock has a fifty day simple moving average of $2.44 and a two-hundred day simple moving average of $2.35. The stock has a market cap of $2.33 billion, a price-to-earnings ratio of -3.79, a P/E/G ratio of 0.87 and a beta of 0.97. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.49 and a current ratio of 0.82.

Coty (NYSE:COTY) last issued its quarterly earnings results on Wednesday, August 19th. The company reported ($0.02) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.01). Coty had a negative net margin of 10.42% and a positive return on equity of 5.51%. The business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the business posted ($0.05) EPS. The company’s revenue for the quarter was up 1.3% on a year-over-year basis. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. Analysts expect that Coty will post 0.34 EPS for the current fiscal 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.