Zacks Investment Research Lowers Coty (COTY) to Sell
Zacks Investment Research lowered shares of Coty (NYSE:COTY) from a hold rating to a sell rating in a research note released on Monday.
According to Zacks, “Coty has lagged the industry in the past three 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.”
Other research analysts have also issued reports about the stock. DA Davidson lowered their target price on shares of Coty from $19.50 to $15.50 and set a neutral rating on the stock in a research note on Friday, May 11th. BMO Capital Markets raised their target price on shares of Coty from $22.00 to $24.00 and gave the company a buy rating in a research note on Friday, February 9th. Berenberg Bank upgraded shares of Coty from a sell rating to a hold rating in a research report on Thursday, May 10th. JPMorgan Chase raised their price target on shares of Coty from $15.00 to $17.00 and gave the stock an underweight rating in a research report on Monday, February 12th. Finally, Citigroup raised their price target on shares of Coty from $21.00 to $23.00 and gave the stock a buy rating in a research report on Friday, February 9th. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $18.68.
Coty (NYSE:COTY) last posted its earnings results on Wednesday, May 9th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $2.17 billion. During the same period last year, the business posted $0.15 EPS. Coty’s revenue was up 9.4% compared to the same quarter last year. research analysts forecast that Coty will post 0.69 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, June 14th. Shareholders of record on Thursday, May 31st will be given a $0.125 dividend. The ex-dividend date is Wednesday, May 30th. This represents a $0.50 annualized dividend and a yield of 3.53%. Coty’s dividend payout ratio is 79.37%.
In other Coty news, Director Robert S. Singer bought 15,000 shares of the firm’s stock in a transaction dated Friday, May 11th. The shares were acquired at an average cost of $14.12 per share, for a total transaction of $211,800.00. Following the transaction, the director now owns 155,000 shares in the company, valued at $2,188,600. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.00% of the stock is currently owned by insiders.
Several institutional investors have recently modified their holdings of the company. Legal & General Group Plc boosted its position in shares of Coty by 11.4% during the 1st quarter. Legal & General Group Plc now owns 4,063,561 shares of the company’s stock valued at $74,322,000 after acquiring an additional 414,781 shares in the last quarter. Quad Capital Management Advisors LLC bought a new position in Coty during the 1st quarter valued at about $2,745,000. Millennium Management LLC lifted its holdings in Coty by 48.2% during the 1st quarter. Millennium Management LLC now owns 147,729 shares of the company’s stock valued at $2,703,000 after purchasing an additional 48,080 shares during the last quarter. TLP Group LLC bought a new position in Coty during the 1st quarter valued at about $224,000. Finally, Verition Fund Management LLC bought a new position in Coty during the 1st quarter valued at about $536,000. Institutional investors and hedge funds own 68.24% of the company’s stock.
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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