The Long-Term Prognosis for Coty Inc. (COTY) Stock

Stock analysts at BofA/Merrill lifted target price for Coty Inc. (NYSE:COTY) shares but reaffirmed their Neutral recommendation for the stock in their opinion released on October 23. The price target has been increased from $11 to $13. Citigroup analysts have downgraded their rating of COTY shares from Neutral to Sell in a separate flash note to investors on July 02.

Let’s take a glimpse at some insider activity at Coty Inc. (NYSE:COTY) and observe the pattern. The earliest insider trade happened on 09/05/2019. Hughes Fiona gathered a total of 210 thousand shares of the firm at average share price of $9.81. The total amount for the purchase was set at $2.06 million. On completing this exchange, the Chief Marketing Officer, CB account balance was 210 thousand shares. The stock grew 18.04 percent from that insider purchase. On 09/04/2019, Singer Robert S, Director, did a purchase of 35 thousand shares at a price of $9.31 per share. This increased 325.85 thousand shares to the insider’s fortune and the stock experienced a 24.38 percent rally in price since the news became public. This exchange saw 270.81 thousand shares get into the Director account. On 09/03/2019, Director HARF PETER recorded a purchase transaction valued at $9.98 million. The purchase at $9.49 a share has added 1.05 million shares into the insider’s portfolio position. Meanwhile, shares price witnessed 22.02 percent increase since the transaction reporting date. The company insider is left with 11.27 million shares remaining in the account. Laubies Pierre, who works as CEO at the company, performed a purchase of 262 thousand shares in a transaction worth $2.5 million. The acquisition recorded on 08/30/2019 was priced at $9.54 per share. The stock price soared 21.38 percent since the transaction. Laubies Pierre currently holds a stake of 3.22 million in COTY stock which is worth $37.27 million after the insider buying.

The stock is lingering around the initial support level of $11.39. After this, the following support is at the zone of $11.2. Up until the time the COTY stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 48.07 on the daily chart, and this may be a cause for concern. In case the price goes below $11.2 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.68 level may cause a pull-back move approaching $11.78 mark.

On December 02, 2019, Coty Inc. (NYSE:COTY) shares gained 0.35% or 0.04 points to close at $11.58 with a thin trading volume of 3.341 million shares. It opened the trading session at $11.52, the shares rose to $11.59 and dropped to $11.3, the range by which the price of stock traded the whole day. The company now has a market cap of $8.78 billion and currently has 758.55 million outstanding shares. Coty Inc. (COTY) stock has plunged -0.94 percent of market value in 21 trading days.

COTY stock’s trailing 3-year beta is 0.68, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$4.95 share in the trailing 52 weeks. The stock’s value surged 76.52 percent year to date (YTD) compared to a rise of 35.92 percent in 52 week’s period. The firm’s shares are still trading -18.08 percent below its 1-year high of $14.14 and 95.94 percent up from 52-week low of $5.91. The average consensus ranking on the company is 3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

The industry COTY deals with has an average P/E of 71.5. Its P/B ratio is standing at 2X compared to the 8.7 industry average. It is additionally sporting a 1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 3.3. Coty Inc. has a 62.2% gross profit margin, with its operating margin around -38.8%. Alongside this, the company’s net profit margin currently stands at -43.5%.

Past records have indicated that shares in Coty Inc. declined on 13 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.