Coty (NYSE:COTY) Shares Gap Down on Analyst Downgrade

Coty (NYSE:COTY)’s stock price gapped down before the market opened on Tuesday after Evercore ISI downgraded the stock from a strong-buy rating to a hold rating. 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 traded.

COTY has been the topic of several other reports. Zacks Research upgraded shares of Coty from a “strong sell” rating to a “hold” rating in a report on Monday, November 24th. Rothschild Redb raised shares of Coty to a “hold” rating in a research report on Tuesday, November 25th. TD Cowen dropped their price objective on shares of Coty from $4.00 to $3.75 and set a “hold” rating on the stock in a research note on Friday, December 12th. Rothschild & Co Redburn started coverage on shares of Coty in a research note on Tuesday, November 25th. They issued a “neutral” rating and a $3.60 price objective for the company. Finally, Wall Street Zen upgraded Coty from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Two investment analysts have rated the stock with a Buy rating, twenty have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Coty currently has an average rating of “Reduce” and an average target price of $5.30.

More Coty News

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Coty completed a sale of its Wella stake and received a large upfront payment; S&P revised its outlook to stable — this strengthens liquidity and reduces near-term refinancing risk. Coty sells Wella stake, S&P revises outlook to stable
• Neutral Sentiment: Coty named Markus Strobel (a Procter & Gamble veteran) as executive chairman and interim CEO effective January; the hire brings CPG operating experience but leaves long-term leadership plans open. Coty taps Procter & Gamble vet as executive chair, interim CEO
• Neutral Sentiment: Sue Nabi is exiting as CEO and will be succeeded by Strobel; the planned transition is part of a broader strategic review and raises questions about near-term execution continuity. Sue Nabi to Exit Coty and Be Succeeded by Markus Strobel
• Negative Sentiment: Evercore ISI downgraded Coty from “strong-buy” to “hold” and flagged that the CEO succession could create disruptive execution risk — analyst skepticism is a downward catalyst for the stock. Zacks – Evercore ISI downgrade
• Negative Sentiment: Commentary from Evercore and market commentators highlights “worrisome disruptions” tied to the leadership change, amplifying investor concern about strategy and growth execution. Coty’s CEO succession creates worrisome disruptions — Evercore ISI
• Negative Sentiment: Coty shares hit a 52-week low amid the headlines, signaling low investor confidence until management clarity and evidence of stabilized sales/growth return. Coty stock hits 52-week low at 3.06 USD

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in COTY. Nuveen LLC acquired a new stake in shares of Coty in the first quarter worth $4,044,000. Edmond DE Rothschild Holding S.A. grew its position in Coty by 10.9% during the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 3,994,553 shares of the company’s stock worth $18,574,000 after purchasing an additional 392,720 shares during the period. Nexpoint Asset Management L.P. purchased a new position in shares of Coty during the 1st quarter valued at about $2,168,000. Norges Bank acquired a new position in shares of Coty in the 2nd quarter valued at about $52,449,000. Finally, Counterpoint Mutual Funds LLC purchased a new stake in shares of Coty in the second quarter worth about $725,000. 42.36% of the stock is currently owned by hedge funds and other institutional investors.

Coty Stock Performance

The firm has a fifty day moving average of $3.55 and a 200 day moving average of $4.22. 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 has a market capitalization of $2.69 billion, a price-to-earnings ratio of -6.67, a price-to-earnings-growth ratio of 0.21 and a beta of 0.95.

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

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.