Coty (NYSE:COTY) Stock Price Up 13.7% on Strong Earnings

Shares of Coty (NYSE:COTY) shot up 13.7% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $4.02 and last traded at $3.9450. 1,410,089 shares were traded during trading, a decline of 84% from the average session volume of 8,671,612 shares. The stock had previously closed at $3.47.

The company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.04. The firm had revenue of $1.56 billion for the quarter, compared to analysts’ expectations of $1.53 billion. Coty had a positive return on equity of 5.68% and a negative net margin of 10.42%. The company’s revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.12 earnings per share.

Key Coty News

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fiscal Q1 adjusted earnings were $0.16 per share, ahead of the $0.12 consensus and up from $0.12 a year earlier. Revenue of $1.56 billion also topped expectations of $1.53 billion. Coty said adjusted EBITDA and free cash flow were ahead of expectations as well. Coty Announces First Quarter Fiscal Year 2027 Results
• Positive Sentiment: Coty secured a 40-year extension of its Marc Jacobs Beauty license, preserving a key prestige fragrance brand in its portfolio and giving the partnership long-term continuity. Coty Extends Marc Jacobs License
• Negative Sentiment: Revenue fell 1.4% year over year, and Coty forecast a soft second-quarter profit as higher costs weigh on its turnaround efforts. The cautious near-term outlook tempers the quarterly earnings beat. Coty forecasts soft second-quarter profit

Analysts Set New Price Targets

Several analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $3.00 price target on shares of Coty in a research note on Friday, August 21st. Royal Bank Of Canada cut Coty from an “outperform” rating to a “sector perform” rating and set a $3.00 price objective for the company. in a research report on Thursday, August 20th. Weiss Ratings downgraded Coty from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 30th. Morgan Stanley lifted their price target on shares of Coty from $2.50 to $2.75 and gave the company an “equal weight” rating in a research report on Tuesday, August 25th. Finally, TD Cowen began coverage on shares of Coty in a report on Friday, October 30th. They issued a “hold” rating on the stock. One research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $3.21.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in COTY. Moss Adams Wealth Advisors LLC bought a new stake in Coty during the third quarter valued at $29,000. Gryphon Financial Partners LLC bought a new stake in shares of Coty during the third quarter worth about $29,000. AlphaGrep UK Ltd purchased a new stake in shares of Coty in the second quarter worth approximately $25,000. Elmwood Wealth Management Inc. purchased a new position in Coty during the 3rd quarter worth $34,000. Finally, Vise Technologies Inc. purchased a new stake in Coty in the 3rd quarter valued at about $36,000. Institutional investors own 42.36% of the company’s stock.

Coty Stock Up 17.2%

The stock has a fifty day moving average of $2.89 and a 200 day moving average of $2.54. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.75 and a quick ratio of 0.42. The firm has a market capitalization of $3.58 billion, a P/E ratio of -5.76, a price-to-earnings-growth ratio of 0.64 and a beta of 0.83.

About Coty

Coty Inc is a global beauty company that develops, manufactures and markets fragrances, cosmetics, skin care and body-care products. Its portfolio includes luxury, prestige and mass-market brands, with products sold through department stores, specialty retailers, e-commerce platforms and other distribution channels.

The company’s brands have included CoverGirl, Rimmel London, Max Factor, Bourjois, Gucci Beauty, Calvin Klein, Marc Jacobs, Burberry, Hugo Boss and Chloé, among others. Coty also participates in professional beauty through hair-care and salon brands, including the Wella portfolio.

Founded in Paris in 1904 by François Coty, the company built its early reputation in fragrance before expanding into broader beauty categories and international markets.