Coty (NYSE:COTY) Cut to “Sector Perform” at Royal Bank Of Canada

Coty (NYSE:COTY) was downgraded by research analysts at Royal Bank Of Canada from an “outperform” rating to a “sector perform” rating in a research report issued on Thursday, Marketbeat.com reports. They presently have a $3.00 price objective on the stock. Royal Bank Of Canada’s target price points to a potential downside of 1.41% from the company’s current price.

Several other equities research analysts also recently weighed in on the company. TD Cowen increased their price target on Coty from $2.30 to $2.90 and gave the stock a “hold” rating in a report on Thursday, May 7th. Morgan Stanley set a $2.50 price objective on shares of Coty in a research note on Thursday, May 7th. Weiss Ratings restated a “sell (e+)” rating on shares of Coty in a research report on Friday, August 7th. Finally, Citigroup raised their target price on shares of Coty from $2.50 to $2.80 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Fourteen equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $3.35.

Coty Price Performance

Shares of NYSE:COTY opened at $3.04 on Thursday. Coty has a one year low of $1.82 and a one year high of $4.93. The stock has a market capitalization of $2.68 billion, a price-to-earnings ratio of -4.91, a PEG ratio of 0.79 and a beta of 0.97. The company has a 50-day simple moving average of $2.43 and a 200-day simple moving average of $2.36. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.49 and a current ratio of 0.82.

Coty (NYSE:COTY) last released its quarterly earnings results on Wednesday, August 19th. The company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01). The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.19 billion. Coty had a positive return on equity of 4.59% and a negative net margin of 9.20%.The business’s quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.05) EPS. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. On average, analysts predict that Coty will post 0.22 EPS for the current year.

Institutional Trading of Coty

Institutional investors have recently bought and sold shares of the company. Nolet Wealth Management LLC acquired a new stake in Coty in the second quarter valued at $108,000. Tactive Advisors LLC boosted its position in shares of Coty by 23.7% in the 2nd quarter. Tactive Advisors LLC now owns 145,008 shares of the company’s stock worth $313,000 after buying an additional 27,799 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Coty by 11.1% in the 2nd quarter. Assenagon Asset Management S.A. now owns 6,871,724 shares of the company’s stock worth $14,843,000 after buying an additional 684,052 shares in the last quarter. Byrne Asset Management LLC acquired a new stake in Coty in the 2nd quarter valued at about $153,000. Finally, Pacer Advisors Inc. grew its stake in Coty by 2,300.9% in the 1st quarter. Pacer Advisors Inc. now owns 2,953,407 shares of the company’s stock valued at $5,936,000 after acquiring an additional 2,830,397 shares during the last quarter. 42.36% of the stock is currently owned by hedge funds and other institutional investors.

Coty News Summary

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fourth-quarter revenue rose approximately 1% year over year to $1.27 billion, exceeding the $1.19 billion analyst consensus. Both Prestige and Consumer Beauty revenue increased 1%, supported by resilient fragrance and cosmetics demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Coty reported $116 million of fourth-quarter operating cash flow and $72.6 million of free cash flow. For fiscal 2026, operating cash flow reached $537.8 million and free cash flow totaled $348.2 million, highlighting the benefit of cost controls. Coty Announces Fourth Quarter Fiscal Year 2026 Results
• Positive Sentiment: The planned transition of the Gucci Beauty license back to Kering is expected to provide Coty with approximately $400 million in proceeds, plus additional inventory proceeds, potentially supporting deleveraging and portfolio restructuring. Coty Q4 Revenue Rises as Net Loss Reaches $144.3 Million
• Neutral Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1, succeeding Laurent Mercier. The change accompanies a broader operating overhaul intended to bring decisions closer to local markets and simplify research, development and supply-chain operations. Coty Appoints Soraya Benchikh Chief Financial Officer
• Negative Sentiment: Adjusted EPS was a $0.02 loss, missing the $0.01-loss consensus, while reported net loss widened to $144.3 million, or $0.16 per diluted share. Fiscal-year revenue fell 2% to $5.81 billion and net loss totaled $618 million. Coty Stock Slips After Wider-Than-Expected Q4 Loss
• Negative Sentiment: Management called fiscal 2027 a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage. EPS guidance of $0.11–$0.13 is below the $0.14 consensus, reinforcing concerns about weaker demand and the brand-portfolio reset. Coty Looks to Finish Strategic Review
• Negative Sentiment: A shareholder litigation firm is investigating whether Coty executives and directors misrepresented slowing growth, margin pressure and weakness in Consumer Beauty and Prestige fragrances, adding a legal overhang. Kuehn Law investigation of Coty

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.