Zacks Investment Research Downgrades Coty Inc. (COTY) to Sell
Coty Inc. (NYSE:COTY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “Coty’s shares have underperformed the Cosmetics & Toiletries industry in the last one year. We note that the consumer beauty segment have been witnessing sluggish results since past many quarters. Though the acquisitions of the P&G Beauty Business, Younique and the Hypermarcas Brands drove consumer beauty segment’s sales by more than 100% in the third-quarter fiscal 2017 results, organically, sales have declined 6%, primarily reflecting a negative price and mix impact. Declines in the retail nail, color cosmetics and hair color categories in the U.S. and mass fragrance in Western Europe and the U.S. are expected to continue to negatively impact business. While the company has a strong portfolio of brands and keeps innovating products to boost its sales, increasing competitive pressure, currency headwinds and changing consumer preferences have been the major deterrents for the company.”
COTY has been the topic of several other reports. BidaskClub downgraded shares of Coty from a “sell” rating to a “strong sell” rating in a research note on Wednesday, July 12th. Societe Generale began coverage on shares of Coty in a research report on Monday, June 12th. They issued a “buy” rating and a $21.00 price objective on the stock. Barclays PLC set a $19.00 price objective on shares of Coty and gave the company a “hold” rating in a research report on Saturday, May 13th. BMO Capital Markets reissued a “buy” rating and issued a $24.00 price objective on shares of Coty in a research report on Tuesday, April 4th. Finally, Jefferies Group LLC began coverage on shares of Coty in a research report on Friday, June 2nd. They issued a “hold” rating and a $17.00 price objective on the stock. Four analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $23.17.
Coty (COTY) traded up 1.28% during mid-day trading on Thursday, reaching $18.94. The company’s stock had a trading volume of 1,768,376 shares. The stock’s market cap is $14.16 billion. The firm’s 50 day moving average is $18.86 and its 200-day moving average is $18.70. Coty has a one year low of $16.95 and a one year high of $30.13.
Coty (NYSE:COTY) last issued its quarterly earnings data on Wednesday, May 10th. The company reported $0.15 EPS for the quarter, topping the consensus estimate of $0.11 by $0.04. Coty had a negative net margin of 2.29% and a positive return on equity of 9.12%. The firm had revenue of $2.03 million for the quarter, compared to analyst estimates of $1.94 billion. During the same period in the prior year, the business posted $0.09 EPS. The business’s revenue for the quarter was down 99.8% compared to the same quarter last year. Equities analysts expect that Coty will post $0.75 earnings per share for the current fiscal year.
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In related news, insider Greerson Greene Mcmullen purchased 20,200 shares of the business’s stock in a transaction dated Wednesday, June 14th. The stock was acquired at an average price of $19.32 per share, for a total transaction of $390,264.00. Following the acquisition, the insider now directly owns 99,507 shares of the company’s stock, valued at approximately $1,922,475.24. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Laurent Kleitman purchased 4,400 shares of the business’s stock in a transaction dated Friday, June 9th. The stock was bought at an average price of $18.63 per share, with a total value of $81,972.00. Following the acquisition, the insider now directly owns 35,400 shares in the company, valued at $659,502. The disclosure for this purchase can be found here. Insiders purchased a total of 188,620 shares of company stock worth $3,588,363 over the last ninety days. Insiders own 16.10% of the company’s stock.
Coty Inc is a beauty company. The Company operates through four segments: Fragrances, Color Cosmetics, Skin & Body Care and Brazil Acquisition. Its fragrance products include a range of men’s and women’s products. Its fragrance brands include Calvin Klein, Marc Jacobs, Davidoff, Chloe, Balenciaga, Beyonce, Bottega Veneta, Miu Miu and Roberto Cavalli.
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