Coty (NYSE:COTY) Hits New 1-Year Low Following Weak Earnings

Shares of Coty (NYSE:COTY) reached a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $2.65 and last traded at $2.6880, with a volume of 1732123 shares trading hands. The stock had previously closed at $3.15.

The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.04). Coty had a negative net margin of 9.13% and a positive return on equity of 5.37%. The firm had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.66 billion. During the same quarter in the prior year, the business posted $0.11 EPS. The firm’s quarterly revenue was up .5% compared to the same quarter last year.

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

Analysts Set New Price Targets

Several brokerages have commented on COTY. TD Cowen dropped their price objective on Coty from $3.50 to $3.40 and set a “hold” rating on the stock in a report on Wednesday, January 21st. Jefferies Financial Group began coverage on shares of Coty in a report on Wednesday, January 14th. They issued a “buy” rating and a $3.50 price target for the company. Weiss Ratings restated a “sell (d)” rating on shares of Coty in a research report on Wednesday, January 21st. Barclays set a $3.00 target price on shares of Coty in a research report on Friday, January 16th. Finally, Wall Street Zen upgraded shares of Coty from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $4.89.

Institutional Trading of Coty

Several large investors have recently bought and sold shares of COTY. Royal Bank of Canada raised its holdings in Coty by 8.2% in the 1st quarter. Royal Bank of Canada now owns 128,451 shares of the company’s stock valued at $702,000 after acquiring an additional 9,700 shares during the last quarter. United Services Automobile Association acquired a new stake in shares of Coty in the first quarter valued at approximately $131,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of 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 valued at $7,101,000 after purchasing an additional 86,534 shares during the last quarter. Focus Partners Wealth purchased a new position in Coty during the first quarter worth approximately $73,000. Finally, KLP Kapitalforvaltning AS boosted its stake in Coty by 13.2% during the second quarter. KLP Kapitalforvaltning AS now owns 90,800 shares of the company’s stock worth $422,000 after buying an additional 10,600 shares during the last quarter. Hedge funds and other institutional investors own 42.36% of the company’s stock.

Coty Trading Down 16.2%

The company has a current ratio of 0.85, a quick ratio of 0.54 and a debt-to-equity ratio of 1.05. The company has a fifty day simple moving average of $3.20 and a 200-day simple moving average of $3.83. The company has a market capitalization of $2.31 billion, a PE ratio of -4.26, a PEG ratio of 0.22 and a beta of 0.95.

About Coty

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.