Coty (COTY) Upgraded to “Hold” at Zacks Investment Research

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Zacks Investment Research upgraded shares of Coty (NYSE:COTY) from a sell rating to a hold rating in a report published on Tuesday morning.

According to Zacks, “Coty has lagged the industry in the past six months due to persistent softness at its significant Consumer Beauty segment. The unit remained pressurized in the third quarter of fiscal 2018, wherein organic sales dropped 4.4%, hurt by wreak brands and tough pricing in Brazil. Also, continued weakness in the global mass beauty market, stiff competition and underlying hurdles in North America remained deterrents. Though management is working toward enhancing this segment, full recovery is likely to take time. Nonetheless, the company’s Luxury and Professional Beauty units delivered solid performances in the third quarter, wherein sales and earnings topped estimates. While earnings were backed by strong revenues and stringent cost control, sales were fueled by gains from Younique and Burberry buyouts. Also, innovations and e-commerce remain drivers. All said, management expects modest net revenue growth in the second half of fiscal 2018.”

COTY has been the topic of a number of other research reports. Morgan Stanley cut their price objective on shares of Coty from $18.00 to $17.00 and set an equal weight rating on the stock in a research report on Thursday, June 21st. ValuEngine downgraded shares of Coty from a hold rating to a sell rating in a research report on Wednesday, May 2nd. Citigroup set a $18.00 target price on shares of Coty and gave the stock a buy rating in a research report on Thursday, May 31st. Wells Fargo & Co set a $15.00 target price on shares of Coty and gave the stock a hold rating in a research report on Wednesday, May 9th. Finally, Deutsche Bank downgraded shares of Coty from a buy rating to a hold rating and set a $20.00 target price on the stock. in a research report on Friday, May 11th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and six have issued a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $17.96.

NYSE:COTY opened at $14.10 on Tuesday. Coty has a one year low of $12.92 and a one year high of $21.68. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.99 and a quick ratio of 0.67. The stock has a market capitalization of $10.48 billion, a PE ratio of 22.38, a price-to-earnings-growth ratio of 1.68 and a beta of 0.31.

Coty (NYSE:COTY) last posted its quarterly earnings results on Wednesday, May 9th. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.12 by $0.01. Coty had a negative net margin of 3.13% and a positive return on equity of 4.31%. The business had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same quarter in the previous year, the business posted $0.15 EPS. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. research analysts forecast that Coty will post 0.69 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Thursday, June 14th. Shareholders of record on Thursday, May 31st were given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 3.55%. The ex-dividend date of this dividend was Wednesday, May 30th. Coty’s dividend payout ratio is presently 79.37%.

In other Coty news, insider Daniel E. Ramos acquired 20,000 shares of the firm’s stock in a transaction on Friday, May 11th. The stock was acquired at an average cost of $14.32 per share, for a total transaction of $286,400.00. Following the purchase, the insider now owns 89,815 shares in the company, valued at approximately $1,286,150.80. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Robert S. Singer acquired 15,000 shares of the firm’s stock in a transaction on Friday, May 11th. The shares were acquired at an average price of $14.12 per share, with a total value of $211,800.00. Following the completion of the purchase, the director now owns 155,000 shares in the company, valued at approximately $2,188,600. The disclosure for this purchase can be found here. In the last three months, insiders have acquired 81,700 shares of company stock worth $1,167,878. 1.00% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in COTY. Point72 Asia Hong Kong Ltd acquired a new stake in Coty during the 1st quarter valued at approximately $105,000. Crawford Investment Counsel Inc. acquired a new stake in Coty during the 1st quarter valued at approximately $184,000. IBM Retirement Fund acquired a new stake in Coty during the 1st quarter valued at approximately $188,000. TLP Group LLC acquired a new stake in Coty during the 1st quarter valued at approximately $224,000. Finally, Point72 Asset Management L.P. acquired a new stake in Coty during the 1st quarter valued at approximately $254,000. Institutional investors and hedge funds own 65.65% of the company’s stock.

About Coty

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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