Coty Inc. [NYSE: COTY] closed the trading session at $7.19 on 11/30/20. The day’s price range saw the stock hit a low of $6.81, while the highest price level was $7.48. The company report on November 12, 2020 that Coty Announces $2.5bn Wella Sale to Complete by November 30, 2020.
Coty Inc. (NYSE: COTY) announced that the strategic sale of its Professional and Retail Hair business – including the Wella, Clairol, OPI and ghd brands (together, “Wella”) – to KKR is anticipated to complete by November 30, 2020. The Company and KKR have entered into amended and restated transaction agreements which remain substantially the same as the original agreements, with the primary adjustment being the removal of certain completion conditions and the sale and transfer of certain entities to Wella post-completion.
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The sale will see KKR own 60% of the standalone Wella entity, while Coty retains the remaining 40%. Upon closing, Coty will receive $2.5bn of proceeds, net of tax and expenses. The net proceeds coupled with Coty’s retained 40% stake in Wella, initially valued at $1.3bn, will considerably strengthen Coty’s capital structure. Coty expects to utilize approximately $2bn of the net proceeds to pay down its Term Loans A and B on a pro rata basis, with the remainder used for general corporate purposes.
The stocks have a year to date performance of -36.09 percent and weekly performance of 18.84 percent. The stock has been moved at 71.60 percent over the last six months. The stock has performed 141.28 percent around the most recent 30 days and changed 100.84 percent over the most recent 3-months.
If compared to the average trading volume of 16.55M shares, COTY reached to a volume of 19628593 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Coty Inc. [COTY]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for COTY shares is $5.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on COTY stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for Coty Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 19, 2020. The new note on the price target was released on October 07, 2020, representing the official price target for Coty Inc. stock. Previously, the target price had yet another raise from $3.10 to $3.25, while Citigroup kept a Neutral rating on COTY stock.
The Average True Range (ATR) for Coty Inc. is set at 0.50, with the Price to Sales ratio for COTY stock in the period of the last 12 months amounting to 1.31. The Price to Book ratio for the last quarter was 1.72, with the Price to Cash per share for the same quarter was set at 0.66.
COTY stock trade performance evaluation
Coty Inc. [COTY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 18.84. With this latest performance, COTY shares gained by 141.28% in over the last four-week period, additionally plugging by 71.60% over the last 6 months – not to mention a drop of -37.69% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for COTY stock in for the last two-week period is set at 74.05, with the RSI for the last a single of trading hit 73.45, and the three-weeks RSI is set at 72.33 for Coty Inc. [COTY]. The present Moving Average for the last 50 days of trading for this stock 3.92, while it was recorded at 7.15 for the last single week of trading, and 4.81 for the last 200 days.
Coty Inc. [COTY]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Coty Inc. [COTY] shares currently have an operating margin of -8.20 and a Gross Margin at +53.15. Coty Inc.’s Net Margin is presently recorded at -23.19.
Return on Total Capital for COTY is now -3.07, given the latest momentum, and Return on Invested Capital for the company is -9.12. Return on Equity for this stock declined to -28.82, with Return on Assets sitting at -6.36. When it comes to the capital structure of this company, Coty Inc. [COTY] has a Total Debt to Total Equity ratio set at 306.82. Additionally, COTY Total Debt to Total Capital is recorded at 75.42, with Total Debt to Total Assets ending up at 55.11. Long-Term Debt to Equity for the company is recorded at 297.05, with the Long-Term Debt to Total Capital now at 73.02.
Reflecting on the efficiency of the workforce at the company, Coty Inc. [COTY] managed to generate an average of -$59,907 per employee. Receivables Turnover for the company is 5.89 with a Total Asset Turnover recorded at a value of 0.27.Coty Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.90.
Earnings per share (EPS) analysis for Coty Inc. [COTY] stock
With the latest financial reports released by the company, Coty Inc. posted 0.27/share EPS, while the average EPS was predicted by analysts to be reported at 0.24/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 12.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for COTY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Coty Inc. go to -5.90%.
Coty Inc. [COTY]: Insider Ownership positions
There are presently around $1,278 million, or 24.20% of COTY stock, in the hands of institutional investors. The top three institutional holders of COTY stocks are: BLACKROCK INC. with ownership of 33,345,904, which is approximately 39.404% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 26,898,927 shares of the stock with an approximate value of $193.4 million in COTY stocks shares; and JPMORGAN CHASE & CO, currently with $102.59 million in COTY stock with ownership of nearly -4.618% of the company’s market capitalization.
Positions in Coty Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 134 institutional holders increased their position in Coty Inc. [NYSE:COTY] by around 32,127,281 shares. Additionally, 167 investors decreased positions by around 71,159,890 shares, while 39 investors held positions by with 74,434,478 shares. The mentioned changes placed institutional holdings at 177,721,649 shares, according to the latest SEC report filing. COTY stock had 48 new institutional investments in for a total of 7,960,250 shares, while 76 institutional investors sold positions of 11,755,058 shares during the same period.