Coty Inc. [COTY] Stock trading around $9.64 per share: What’s Next?


Coty Inc. [NYSE: COTY] loss -6.41% or -0.66 points to close at $9.64 with a heavy trading volume of 8147294 shares. The company report on November 22, 2021 that Coty Inc. Prices $500 Million of Senior Secured Notes.

Coty Inc. (NYSE: COTY) (“Coty”) announced the pricing of $500 million of 4.750% senior secured notes due 2029 (the “Notes”) issued by Coty and its wholly-owned subsidiaries, HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC (the “Co-Issuers” and collectively with Coty, the “Issuers”). Coty will receive gross proceeds of $500 million in connection with the offering of the Notes. The offering is expected to close on November 30, 2021, subject to customary closing conditions.

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The Notes will be senior secured obligations of the Issuers and will be guaranteed on a senior secured basis by each of Coty’s subsidiaries (other than the Co-Issuers) that guarantee, and will be secured by first priority liens on the same collateral that secures, Coty’s obligations under the existing senior secured credit facilities and under the existing senior secured notes. The Notes and the guarantees will be equal in right of payment with all of the Issuers’ and the guarantors’ respective existing and future senior indebtedness and will be effectively pari passu with all of the Issuers’ and the guarantors’ respective existing and future indebtedness that is secured by a first priority lien on the collateral, including the existing senior secured credit facilities and the existing senior secured notes, to the extent of the value of such collateral.

It opened the trading session at $9.58, the shares rose to $9.845 and dropped to $9.48, the range by which the price of stock traded the whole day. The daily chart for COTY points out that the company has recorded 8.19% gains over the past six months. However, it is still -55.48% lower than its most recent low trading price.

If we look at the average trading volume of 10.87M shares, COTY reached to a volume of 8147294 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $12.60 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.

Wells Fargo have made an estimate for Coty Inc. shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on November 17, 2021. The new note on the price target was released on November 09, 2021, representing the official price target for Coty Inc. stock. Previously, the target price had yet another raise to $11, while Deutsche Bank analysts kept a Buy rating on COTY stock.

The Average True Range (ATR) for Coty Inc. is set at 0.43, with the Price to Sales ratio for COTY stock in the period of the last 12 months amounting to 1.68. The Price to Book ratio for the last quarter was 2.31, with the Price to Cash per share for the same quarter was set at 0.44. Price to Free Cash Flow for COTY in the course of the last twelve months was 19.91 with Quick ratio for the last quarter at 0.50.

Trading performance analysis for COTY stock

Coty Inc. [COTY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.49. With this latest performance, COTY shares gained by 16.99% in over the last four-week period, additionally plugging by 8.19% over the last 6 months – not to mention a rise of 32.78% 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 48.55, with the RSI for the last a single of trading hit 39.43, and the three-weeks RSI is set at 52.21 for Coty Inc. [COTY]. The present Moving Average for the last 50 days of trading for this stock 8.83, while it was recorded at 10.16 for the last single week of trading, and 8.77 for the last 200 days.

Coty Inc. [COTY]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Coty Inc. [COTY] shares currently have an operating margin of +3.30 and a Gross Margin at +54.35. Coty Inc.’s Net Margin is presently recorded at -1.38.

Return on Total Capital for COTY is now 1.36, given the latest momentum, and Return on Invested Capital for the company is -0.60. Return on Equity for this stock declined to -2.18, with Return on Assets sitting at -0.42. When it comes to the capital structure of this company, Coty Inc. [COTY] has a Total Debt to Total Equity ratio set at 237.93. Additionally, COTY Total Debt to Total Capital is recorded at 70.41, with Total Debt to Total Assets ending up at 49.71. Long-Term Debt to Equity for the company is recorded at 234.44, with the Long-Term Debt to Total Capital now at 69.37.

Reflecting on the efficiency of the workforce at the company, Coty Inc. [COTY] managed to generate an average of -$5,599 per employee. Receivables Turnover for the company is 11.75 with a Total Asset Turnover recorded at a value of 0.30.Coty Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.70.

Coty Inc. [COTY]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Coty Inc. posted -0.02/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 66.70%. 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%.

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An analysis of insider ownership at Coty Inc. [COTY]

There are presently around $2,556 million, or 33.70% of COTY stock, in the hands of institutional investors. The top three institutional holders of COTY stocks are: BLACKROCK INC. with ownership of 36,284,914, which is approximately 11.509% of the company’s market cap and around 1.40% of the total institutional ownership; VANGUARD GROUP INC, holding 30,591,637 shares of the stock with an approximate value of $294.9 million in COTY stocks shares; and MELVIN CAPITAL MANAGEMENT LP, currently with $144.6 million in COTY stock with ownership of nearly 50% 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 168 institutional holders increased their position in Coty Inc. [NYSE:COTY] by around 74,138,704 shares. Additionally, 96 investors decreased positions by around 21,291,264 shares, while 56 investors held positions by with 169,699,517 shares. The mentioned changes placed institutional holdings at 265,129,485 shares, according to the latest SEC report filing. COTY stock had 52 new institutional investments in for a total of 22,962,637 shares, while 35 institutional investors sold positions of 5,487,702 shares during the same period.