Coty (NYSE:COTY) Hits New 12-Month Low Following Analyst Downgrade

Coty (NYSE:COTY) hit a new 52-week low on Wednesday after Evercore ISI downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $2.94 and last traded at $3.0050, with a volume of 13133539 shares changing hands. The stock had previously closed at $3.14.

A number of other research analysts also recently commented on the company. Berenberg Bank restated a “hold” rating and set a $5.05 price objective (down from $6.50) on shares of Coty in a research note on Wednesday, September 10th. Santander downgraded shares of Coty to a “neutral” rating in a report on Tuesday. Wall Street Zen raised shares of Coty from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Weiss Ratings reiterated a “sell (d)” rating on shares of Coty in a research report on Wednesday, October 8th. Finally, Citigroup reduced their target price on shares of Coty from $4.25 to $3.50 and set a “neutral” rating for the company in a research note on Wednesday, December 17th. Two analysts have rated the stock with a Buy rating, twenty have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $5.30.

Key Stores Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Coty completed the sale of its remaining Wella stake, unlocking substantial upfront cash that management says will let it refocus on core fragrance and beauty brands and improve liquidity. Coty Completes Wella Divestment to Refocus on Fragrances
• Positive Sentiment: S&P revised Coty’s credit outlook to stable after the transaction, a sign the divestment reduced near-term balance-sheet pressure and improved rating agency confidence. Coty sells Wella stake, S&P revises outlook to stable
• Neutral Sentiment: The board appointed Markus Strobel (longtime Procter & Gamble executive) as Executive Chairman and interim CEO effective Jan. 1 — his CPG track record could help execution, but it also signals a period of management transition. Coty Appoints Markus Strobel Executive Chairman and Interim CEO
• Neutral Sentiment: Market commentary and social chatter highlight mixed views: some see the sale as necessary repositioning while others say Coty still lacks clear growth catalysts post-divestment. Insider buying activity has been noted, but institutional portfolio shifts remain mixed. Coty Inc. Stock (COTY) Opinions on CEO Transition and Wella Divestment
• Negative Sentiment: CEO Sue Nabi is exiting and will be succeeded by Strobel, a change that analysts warn could create disruption during a critical strategic reset. Sue Nabi to Exit Coty and Be Succeeded by Markus Strobel
• Negative Sentiment: Evercore ISI flagged the CEO succession as potentially “worrisome” and disruptive, amplifying sell-side caution around execution risk and near-term volatility. Coty’s CEO succession creates worrisome disruptions — Evercore ISI
• Negative Sentiment: The stock has touched a 52‑week low amid these developments, reflecting investor concern that proceeds and leadership changes may not be enough to quickly turn around sales and margins. Coty stock hits 52-week low at 3.06 USD

Hedge Funds Weigh In On Coty

Several large investors have recently bought and sold shares of the stock. UMB Bank n.a. lifted its stake in shares of Coty by 137.1% in the 2nd quarter. UMB Bank n.a. now owns 6,851 shares of the company’s stock worth $32,000 after acquiring an additional 3,962 shares during the period. United Capital Financial Advisors LLC bought a new stake in Coty during the third quarter worth approximately $43,000. Shay Capital LLC bought a new stake in Coty during the second quarter worth approximately $46,000. Amplius Wealth Advisors LLC acquired a new stake in Coty in the third quarter worth approximately $47,000. Finally, FORA Capital LLC bought a new position in Coty during the 2nd quarter valued at $47,000. Institutional investors and hedge funds own 42.36% of the company’s stock.

Coty Trading Down 4.3%

The stock has a market capitalization of $2.63 billion, a P/E ratio of -6.53, a price-to-earnings-growth ratio of 0.23 and a beta of 0.95. The business has a 50 day simple moving average of $3.58 and a 200-day simple moving average of $4.23. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.54 and a current ratio of 0.85.

Coty (NYSE:COTY) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.03). Coty had a negative net margin of 6.60% and a positive return on equity of 4.74%. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter last year, the company earned $0.15 EPS. The company’s quarterly revenue was down 5.6% compared to the same quarter last year. Coty has set its Q2 2026 guidance at 0.180-0.210 EPS. On average, analysts predict that Coty will post 0.39 EPS for the current year.

Coty Company Profile

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.