Coty (NYSE:COTY) Shares Gap Down Following Weak Earnings

Coty Inc. (NYSE:COTY)’s stock price 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 traded.

The company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates 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 analyst estimates of $1.37 billion. During the same period last year, the firm earned $0.19 earnings per share. The company’s quarterly revenue was up 7.5% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on COTY shares. TD Cowen reduced their target price on Coty from $16.00 to $13.00 and set a “buy” rating on the stock in a report on Wednesday, April 17th. Royal Bank of Canada reissued an “outperform” rating and set a $14.00 target price on shares of Coty in a report on Friday, February 9th. Wells Fargo & Company lifted their price target on shares of Coty from $11.00 to $12.00 and gave the company an “equal weight” rating in a report on Friday, February 9th. TheStreet raised shares of Coty from a “c+” rating to a “b-” rating in a report on Thursday, February 8th. Finally, Canaccord Genuity Group began coverage on Coty in a report on Monday, April 15th. They set a “buy” rating and a $14.00 target price for the company. Eight analysts have rated the stock with a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $13.14.

Insiders Place Their Bets

In other news, Director Robert S. Singer sold 30,000 shares of Coty stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $12.70, for a total value of $381,000.00. Following the transaction, the director now owns 120,000 shares of the company’s stock, valued at $1,524,000. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In related news, Director Robert S. Singer sold 90,000 shares of Coty stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $12.56, for a total transaction of $1,130,400.00. Following the completion of the sale, the director now directly owns 169,982 shares of the company’s stock, valued at approximately $2,134,973.92. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Robert S. Singer sold 30,000 shares of the company’s stock in a transaction dated Wednesday, March 6th. The shares were 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 owns 120,000 shares in the company, valued at $1,524,000. The disclosure for this sale can be found here. Insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Coty

A number of hedge funds have recently added to or reduced their stakes in the stock. Swiss National Bank raised its position in shares of Coty by 0.3% in the 1st quarter. Swiss National Bank now owns 792,401 shares of the company’s stock valued at $9,477,000 after buying an additional 2,300 shares in the last quarter. SG Americas Securities LLC increased its holdings in shares of Coty by 985.5% during the first quarter. SG Americas Securities LLC now owns 625,808 shares of the company’s stock worth $7,485,000 after buying an additional 568,156 shares in the last quarter. Quantbot Technologies LP boosted its holdings in shares of Coty by 11,593.2% during the 1st quarter. Quantbot Technologies LP now owns 39,523 shares of the company’s stock valued at $473,000 after acquiring an additional 39,185 shares in the last quarter. Texas Permanent School Fund Corp raised its holdings in Coty by 1.7% in the 1st quarter. Texas Permanent School Fund Corp now owns 329,046 shares of the company’s stock valued at $3,935,000 after buying an additional 5,531 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its holdings in Coty by 125.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 107,502 shares of the company’s stock worth $1,286,000 after acquiring an additional 59,804 shares during the last quarter. Institutional investors own 42.36% of the company’s stock.

Coty Price Performance

The company has a quick ratio of 0.58, a current ratio of 0.85 and a debt-to-equity ratio of 0.80. The stock has a market cap of $10.01 billion, a P/E ratio of 31.60, a P/E/G ratio of 6.49 and a beta of 1.83. The company’s 50 day moving average price is $11.76 and its 200-day moving average price is $11.61.

About Coty

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.