Coty Inc. [NYSE: COTY] closed the trading session at $7.78 on 12/19/22. The day’s price range saw the stock hit a low of $7.77, while the highest price level was $8.20. The company report on December 12, 2022 that Coty Expands Its Future Shareholder Returns, Alongside Expected Capital Structure Improvement.
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Coty Starting to Hedge Stock Price for Expected Buyback in CY25 of Around $200M, Adding to Previously Announced $200M Hedged Buyback in CY24Coty to Continue its Disciplined Deleveraging Trajectory Towards 2x by CY25.
Coty Inc. (NYSE: COTY) today announced it is entering into agreements with several banks to start hedging a planned share buyback program of approximately $200 million in calendar 2025. This program adds to the Company’s previously announced $200 million hedged buyback in CY24. Coty anticipates continued strong free cash flow generation and steady deleveraging progress in the coming years, continuing to target leverage towards 4x exiting CY22, towards 3x exiting CY23, and towards 2x CY25.
The stocks have a year to date performance of -25.90 percent and weekly performance of -1.77 percent. The stock has been moved at 5.56 percent over the last six months. The stock has performed 0.65 percent around the most recent 30 days and changed -0.13 percent over the most recent 3-months.
If compared to the average trading volume of 6.44M shares, COTY reached to a volume of 7368182 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 $10.27 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 2.40. 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.
Piper Sandler have made an estimate for Coty Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on September 22, 2022. While these analysts kept the previous recommendation, BofA Securities raised their target price to Buy. The new note on the price target was released on September 14, 2022, representing the official price target for Coty Inc. stock. Previously, the target price had yet another raise to $8, while Piper Sandler analysts kept a Neutral rating on COTY stock.
The Average True Range (ATR) for Coty Inc. is set at 0.29, with the Price to Sales ratio for COTY stock in the period of the last 12 months amounting to 1.24. The Price to Book ratio for the last quarter was 2.15, with the Price to Cash per share for the same quarter was set at 0.25. Price to Free Cash Flow for COTY in the course of the last twelve months was 16.49 with Quick ratio for the last quarter at 0.40.
COTY stock trade performance evaluation
Coty Inc. [COTY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.77. With this latest performance, COTY shares gained by 0.65% in over the last four-week period, additionally plugging by 5.56% over the last 6 months – not to mention a drop of -20.04% 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 51.72, with the RSI for the last a single of trading hit 47.13, and the three-weeks RSI is set at 53.10 for Coty Inc. [COTY]. The present Moving Average for the last 50 days of trading for this stock 7.24, while it was recorded at 8.01 for the last single week of trading, and 7.54 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 +5.26 and a Gross Margin at +59.58. Coty Inc.’s Net Margin is presently recorded at +4.78.
Return on Equity for this stock inclined to 8.44, with Return on Assets sitting at 1.97.
Coty Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.70.
Earnings per share (EPS) analysis for Coty Inc. [COTY] stock
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 21.80%.
Coty Inc. [COTY]: Insider Ownership positions
There are presently around $2,688 million, or 37.80% of COTY stock, in the hands of institutional investors. The top three institutional holders of COTY stocks are: BLACKROCK INC. with ownership of 52,307,085, which is approximately 1.16% of the company’s market cap and around 2.80% of the total institutional ownership; VANGUARD GROUP INC, holding 38,323,086 shares of the stock with an approximate value of $298.15 million in COTY stocks shares; and MELVIN CAPITAL MANAGEMENT LP, currently with $228.75 million in COTY stock with ownership of nearly -29.994% 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 152 institutional holders increased their position in Coty Inc. [NYSE:COTY] by around 38,736,618 shares. Additionally, 132 investors decreased positions by around 52,721,249 shares, while 53 investors held positions by with 254,041,746 shares. The mentioned changes placed institutional holdings at 345,499,613 shares, according to the latest SEC report filing. COTY stock had 34 new institutional investments in for a total of 3,826,682 shares, while 40 institutional investors sold positions of 9,199,454 shares during the same period.