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

Coty Inc. (NYSE:COTY) shares 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). The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.37 billion. Coty had a return on equity of 11.91% and a net margin of 5.39%. The company’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.19 earnings per share.

Wall Street Analysts Forecast Growth

COTY has been the topic of several research analyst reports. TheStreet upgraded shares of Coty from a “c+” rating to a “b-” rating in a research note on Thursday, February 8th. Barclays dropped their price target on Coty from $13.00 to $12.00 and set an “equal weight” rating for the company in a research note on Friday, April 12th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $14.00 price objective on shares of Coty in a research note on Friday, February 9th. Canaccord Genuity Group started coverage on Coty in a research report on Monday, April 15th. They set a “buy” rating and a $14.00 target price for the company. Finally, DA Davidson lowered their price objective on shares of Coty from $17.50 to $16.50 and set a “buy” rating for the company in a research report on Tuesday. Eight equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, Coty has an average rating of “Hold” and a consensus price target of $13.14.

Insiders Place Their Bets

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

Institutional Trading of Coty

Several hedge funds and other institutional investors have recently made changes to their positions in the business. SG Americas Securities LLC increased its position in shares of Coty by 132.4% in the 3rd quarter. SG Americas Securities LLC now owns 43,068 shares of the company’s stock valued at $472,000 after acquiring an additional 24,536 shares during the period. Raymond James Financial Services Advisors Inc. boosted its position in Coty by 388.4% in the third quarter. Raymond James Financial Services Advisors Inc. now owns 102,175 shares of the company’s stock valued at $1,121,000 after buying an additional 81,253 shares during the last quarter. Stratos Wealth Partners LTD. acquired a new position in Coty in the 3rd quarter worth approximately $136,000. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of Coty by 9.2% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 74,353 shares of the company’s stock worth $816,000 after purchasing an additional 6,279 shares during the last quarter. Finally, BluePath Capital Management LLC purchased a new stake in shares of Coty in the third quarter worth about $29,000. Hedge funds and other institutional investors own 42.36% of the company’s stock.

Coty Stock Down 3.5 %

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 business’s 50 day moving average price is $11.72 and its 200 day moving average price is $11.62. The firm has a market cap of $9.94 billion, a price-to-earnings ratio of 31.72, a PEG ratio of 6.49 and a beta of 1.83.

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.