Coty (NYSE:COTY) Shares Gap Down – Time to Sell?

Coty (NYSE:COTY) shares gapped down prior to trading on Tuesday . The stock had previously closed at $3.14, but opened at $3.04. Coty shares last traded at $3.0050, with a volume of 821,721 shares changing hands.

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, generating roughly $750M upfront and narrowing the company’s focus on higher-margin fragrance and beauty brands — a refinancing/cash-strengthening event that reduces complexity and can fund buybacks or debt paydown. Coty Completes Wella Divestment to Refocus on Fragrances
• Positive Sentiment: Insiders have recently been net buyers of COTY stock (several executive purchases reported), which can signal management’s confidence in the turnaround and is often viewed favorably by investors. Coty Inc. Stock (COTY) Opinions on CEO Transition and Wella Divestment
• Positive Sentiment: The board tapped Markus Strobel, a long-time Procter & Gamble executive, as Executive Chairman and interim CEO — investors may view his CPG operating experience as a potential catalyst to stabilize operations and sharpen brand execution. Coty Appoints Markus Strobel Executive Chairman and Interim CEO
• Neutral Sentiment: Analysts remain mixed: recent Hold/Neutral stances from major firms temper upside expectations even as some bulls raise price targets (median targets still near $4), keeping sentiment balanced rather than decisively bullish. Coty: Leadership Transition and Structural Brand Challenges Keep Risk‑Reward Balanced at Hold
• Neutral Sentiment: Institutional positioning is mixed — some funds added shares while others pared large positions in recent quarters, which increases volatility and means follow-through buying/selling could swing the stock. Coty Inc. Stock (COTY) Opinions on CEO Transition and Wella Divestment
• Negative Sentiment: Coty’s recent results showed declining revenue and an EPS miss, highlighting ongoing top-line weakness and competitive pressure in beauty categories — tangible near-term headwinds for valuation and growth expectations. Coty Inc. Stock (COTY) Opinions on CEO Transition and Wella Divestment
• Negative Sentiment: Large institutional sellers (several multi-million share reductions by firms like Ameriprise and others) suggest some investors lack confidence in near-term execution, adding selling pressure. Coty Inc. Stock (COTY) Opinions on CEO Transition and Wella Divestment

Analysts Set New Price Targets

A number of analysts recently issued reports on COTY shares. Santander lowered shares of Coty to a “neutral” rating in a research note on Tuesday. Wall Street Zen raised shares of Coty from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Zacks Research upgraded shares of Coty from a “strong sell” rating to a “hold” rating in a research note on Monday, November 24th. Evercore ISI reiterated an “in-line” rating and issued a $7.00 price target on shares of Coty in a research note on Monday. Finally, Rothschild & Co Redburn started coverage on Coty in a research note on Tuesday, November 25th. They set a “neutral” rating and a $3.60 price objective on the stock. Two research analysts have rated the stock with a Buy rating, twenty have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $5.30.

Coty Stock Down 5.3%

The company has a debt-to-equity ratio of 1.05, a current ratio of 0.85 and a quick ratio of 0.54. The stock’s fifty day simple moving average is $3.60 and its 200-day simple moving average is $4.24. The stock has a market cap of $2.60 billion, a P/E ratio of -6.49, a PEG ratio of 0.24 and a beta of 0.95.

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

Institutional Investors Weigh In On Coty

A number of hedge funds have recently added to or reduced their stakes in COTY. Tudor Investment Corp ET AL grew its position in shares of Coty by 1,912.3% during the third quarter. Tudor Investment Corp ET AL now owns 1,600,131 shares of the company’s stock worth $6,465,000 after acquiring an additional 1,520,615 shares during the last quarter. Swiss Life Asset Management Ltd boosted its stake in Coty by 58.9% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 17,250 shares of the company’s stock valued at $70,000 after purchasing an additional 6,392 shares during the period. CANADA LIFE ASSURANCE Co grew its position in Coty by 11.2% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 278,083 shares of the company’s stock worth $1,113,000 after purchasing an additional 27,909 shares during the last quarter. Dark Forest Capital Management LP acquired a new stake in shares of Coty in the third quarter valued at approximately $939,000. Finally, United Capital Financial Advisors LLC acquired a new stake in shares of Coty in the third quarter valued at approximately $43,000. 42.36% of the stock is currently owned by institutional investors.

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.