Coty (COTY) Cut to “Sell” at Zacks Investment Research

Coty (NYSE:COTY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.

According to Zacks, “Coty, which has underperformed the industry over the past three months, has been facing consistent challenges in its consumer beauty segment. Organic sales at this segment has been hurt by persistent softness in the global mass beauty market. Also, the segment has been consistently witnessing underlying challenges in North America. Unfortunately, management is less hopeful regarding the segment's recovery in the near term. Additionally, the company’s performance is also exposed to the challenges of changing consumer preferences and currency volatility.  Nevertheless, Coty has been gaining from its focus on strategic buyouts. Incidentally, the buyouts of ghd, Younique and Burberry have been fueling Coty’s top-line for a while. Further, the company’s advancements in the e-commerce realm is also applaudable.”

COTY has been the topic of a number of other reports. Royal Bank of Canada raised shares of Coty from a “sector perform” rating to an “outperform” rating in a research note on Thursday, December 21st. BMO Capital Markets raised their price objective on shares of Coty from $22.00 to $24.00 and gave the company a “buy” rating in a research note on Friday, February 9th. Citigroup raised their price objective on shares of Coty from $21.00 to $23.00 and gave the company a “buy” rating in a research note on Friday, February 9th. Stifel Nicolaus reaffirmed a “buy” rating on shares of Coty in a research note on Friday, February 9th. Finally, Barclays set a $20.00 price target on shares of Coty and gave the company a “hold” rating in a research report on Saturday, February 10th. Four investment analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $19.71.

NYSE:COTY traded up $0.20 during trading hours on Monday, reaching $17.86. The company had a trading volume of 1,769,272 shares, compared to its average volume of 4,715,947. The company has a current ratio of 0.93, a quick ratio of 0.66 and a debt-to-equity ratio of 0.76. The stock has a market capitalization of $13,242.60, a price-to-earnings ratio of 28.22, a PEG ratio of 1.90 and a beta of 0.37. Coty has a twelve month low of $14.24 and a twelve month high of $21.68.

Coty (NYSE:COTY) last posted its quarterly earnings results on Thursday, February 8th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.08. The business had revenue of $2.64 billion during the quarter, compared to analysts’ expectations of $2.48 billion. Coty had a negative net margin of 4.15% and a positive return on equity of 4.45%. The business’s quarterly revenue was up 14.8% on a year-over-year basis. During the same period last year, the company posted $0.30 earnings per share. equities analysts predict that Coty will post 0.72 earnings per share for the current fiscal year.

In other news, major shareholder Cosmetics B.V. Jab purchased 4,100,000 shares of the company’s stock in a transaction that occurred on Wednesday, February 14th. The shares were bought at an average cost of $20.60 per share, with a total value of $84,460,000.00. Following the completion of the transaction, the insider now directly owns 287,558,041 shares of the company’s stock, valued at $5,923,695,644.60. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.00% of the stock is owned by company insiders.

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Coty Company Profile

Coty Inc, together with its subsidiaries, manufactures, markets, sells, and distributes beauty products worldwide. It operates in three segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care products, and mass fragrances primarily through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, and traditional food and drug retailers, as well as own branded e-commerce and direct to consumer Websites.

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