Coty (NYSE:COTY) Shares Gap Down on Disappointing Earnings

Shares of Coty Inc. (NYSE:COTY) gapped down before the market opened 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.

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

Analyst Ratings Changes

A number of research firms recently commented on COTY. TheStreet raised shares of Coty from a “c+” rating to a “b-” rating in a research note on Thursday, February 8th. Canaccord Genuity Group initiated coverage on Coty in a report on Monday, April 15th. They set a “buy” rating and a $14.00 price objective on the stock. Royal Bank of Canada reissued an “outperform” rating and issued a $14.00 price target on shares of Coty in a research report on Friday, February 9th. Citigroup lowered their target price on shares of Coty from $13.00 to $12.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 16th. Finally, Wells Fargo & Company boosted their target price on shares of Coty from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research report on Friday, February 9th. Eight investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Coty currently has a consensus rating of “Hold” and an average target price of $13.14.

Insider Activity

In other Coty news, Director Robert S. Singer sold 30,000 shares of the stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $12.70, for a total transaction of $381,000.00. Following the completion of the transaction, the director now directly owns 120,000 shares in the company, valued at $1,524,000. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, Director Robert S. Singer sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 6th. The stock was sold at an average price of $12.70, for a total value of $381,000.00. Following the transaction, the director now directly owns 120,000 shares of the company’s stock, valued at approximately $1,524,000. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Robert S. Singer sold 90,000 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $12.56, for a total value of $1,130,400.00. Following the completion of the transaction, the director now directly owns 169,982 shares in the company, 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.

Institutional Trading of Coty

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in COTY. Vanguard Group Inc. increased its stake in shares of Coty by 12.1% in the 3rd quarter. Vanguard Group Inc. now owns 39,281,692 shares of the company’s stock valued at $430,920,000 after acquiring an additional 4,245,039 shares during the last quarter. SG Americas Securities LLC lifted its holdings in Coty by 33.9% during the fourth quarter. SG Americas Securities LLC now owns 57,652 shares of the company’s stock worth $716,000 after acquiring an additional 14,584 shares in the last quarter. Retirement Systems of Alabama increased its holdings in shares of Coty by 53.8% in the fourth quarter. Retirement Systems of Alabama now owns 687,744 shares of the company’s stock worth $8,542,000 after acquiring an additional 240,524 shares in the last quarter. Vaughan Nelson Investment Management L.P. increased its stake in Coty by 29.1% during the 3rd quarter. Vaughan Nelson Investment Management L.P. now owns 1,707,372 shares of the company’s stock worth $18,729,000 after purchasing an additional 385,290 shares in the last quarter. Finally, Integrated Advisors Network LLC lifted its stake in Coty by 76.9% in the third quarter. Integrated Advisors Network LLC now owns 323,296 shares of the company’s stock valued at $3,547,000 after buying an additional 140,555 shares in the last quarter. 42.36% of the stock is currently owned by institutional investors and hedge funds.

Coty Stock Performance

The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.58 and a current ratio of 0.85. The stock has a market cap of $9.94 billion, a P/E ratio of 31.72, a PEG ratio of 6.49 and a beta of 1.83. The stock has a fifty day simple moving average of $11.72 and a 200-day simple moving average of $11.62.

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.