Coty (NYSE:COTY) Reaches New 12-Month Low Following Weak Earnings

Coty (NYSE:COTY) reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $2.65 and last traded at $2.6880, with a volume of 1732123 shares. The stock had previously closed at $3.15.

The company reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.04). Coty had a positive return on equity of 5.37% and a negative net margin of 9.13%.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 prior year, the business earned $0.11 EPS. The company’s quarterly revenue was up .5% on a year-over-year basis.

Key Coty News

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Coty says it will continue a strategic review after reducing debt, which should improve financial flexibility and supports a restructuring/turnaround path. Coty continues strategic review following successful debt reduction
• Positive Sentiment: Coty announced a partnership with OpenAI to scale AI tools across its organization, which could drive efficiency gains and faster execution of the turnaround. Coty partners with OpenAI
• Positive Sentiment: Analyst support remains in parts of the street—Royal Bank of Canada reiterated an Outperform rating, showing some conviction among investors who focus on a multi‑quarter recovery. RBC reiterates Outperform
• Neutral Sentiment: Top‑line: Q2 revenue modestly beat estimates, indicating demand wasn’t the primary problem this quarter; the beat was small and paired with mix/price pressure. Coty Q2 Earnings Miss Estimates Amid Margin Pressure, Revenues Beat
• Neutral Sentiment: New interim CEO Markus Strobel unveiled the “Coty Curated” turnaround; strategy provides a framework but execution risk remains and will take time to influence results. Coty Unveils ‘Coty Curated’ Turnaround Strategy
• Negative Sentiment: Profitability: Q2 EPS of $0.14 missed consensus ($0.18), and the company swung to a loss after posting a negative net margin — a direct driver of the stock decline. Coty Q2 Earnings Lag Estimates
• Negative Sentiment: Guidance & outlook: Management withdrew full‑year guidance and warned of continued promotional and tariff pressures that will compress margins—heightening near‑term uncertainty. Coty shifts focus to core brands under new CEO, withdraws full-year outlook
• Negative Sentiment: Market reaction: the earnings miss, guidance withdrawal and margin warning prompted heavy selling and elevated volume; some outlets note the share price fell sharply after the release. Coty Swings to Second-Quarter Loss, Withdraws Fiscal-Year Guidance

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on COTY shares. Rothschild & Co Redburn set a $3.60 price target on shares of Coty in a research report on Tuesday, November 25th. Weiss Ratings reissued a “sell (d)” rating on shares of Coty in a report on Wednesday, January 21st. Santander lowered Coty to a “neutral” rating in a report on Tuesday, December 23rd. TD Cowen dropped their price target on Coty from $3.50 to $3.40 and set a “hold” rating on the stock in a research report on Wednesday, January 21st. Finally, Wall Street Zen raised Coty from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Two analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Coty has a consensus rating of “Reduce” and an average price target of $4.89.

Institutional Trading of Coty

Several large investors have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted its position in Coty by 8.2% during the 1st quarter. Royal Bank of Canada now owns 128,451 shares of the company’s stock worth $702,000 after acquiring an additional 9,700 shares during the period. United Services Automobile Association bought a new stake in shares of Coty during the first quarter valued at about $131,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Coty by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,298,221 shares of the company’s stock worth $7,101,000 after purchasing an additional 86,534 shares during the period. Focus Partners Wealth acquired a new stake in Coty in the first quarter worth about $73,000. Finally, KLP Kapitalforvaltning AS grew its position in Coty by 13.2% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 90,800 shares of the company’s stock valued at $422,000 after buying an additional 10,600 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 1.05, a quick ratio of 0.54 and a current ratio of 0.85. The company’s 50 day simple moving average is $3.20 and its 200 day simple moving average is $3.83. The stock has a market cap of $2.31 billion, a price-to-earnings ratio of -4.26, a PEG ratio of 0.19 and a beta of 0.95.

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.