Buying Coty Inc. (COTY) Stock Is A Smart Move Today?

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Coty Inc. (NYSE:COTY) finished Thursday with a subtraction of -$0.1 to close at $7.94, a downside of -1.24 percent. An average of 8,530,200 shares of common stock have been traded in the last five days. There was a gain of $0.22 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 7,381,945 shares traded, while the 50-day average volume stands at 6,220,754.

COTY stock has increased by 8.47% in the last month. The company shares reached their 1-month lowest point of $7.20 on 09/06/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $5.90 and a high of $11.12 in 52 weeks. It has reached a new high 1 time so far this year and lost -24.38% or -$2.56 in price. In spite of this, the price is down -28.60% from the 52-week high.


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Insider Transactions

284 days have passed since Coty Inc. (COTY) last reported insider trading activity. Singer Robert S, who is Director, most recently acquired $25,000 shares at $10.00 per share on Dec 13. In this transaction, the insider spent $250,000. Director, Singer Robert S, disposed of 10,000 shares at a price of $10.28 on Nov 24. The insider now owns more than $102,844 worth of shares. Prior to that, Director Singer Robert S went on to Sale 5,000 shares at $10.91 each on Nov 12. An amount of $54,561 was transacted.

Valuation Metrics

Coty Inc. (COTY) has a trailing price-to-earnings (P/E) ratio of 110.28. The stock’s beta is 1.93. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.26, the price-to-book (PB) ratio at 2.11, and the price-to-cash flow ratio at 12.11.

Financial Health

The quick ratio of Coty Inc. for the three months ended June 29 was 0.40, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.44 and a total debt to equity ratio of 1.45 for the quarter ending June 29. Its gross profit as reported stood at $3.37 billion compared to revenue of $5.3 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Coty Inc.’s return on assets was 0.50%.

Earnings Surprise

For the three-month period that ended June 29, Coty Inc. had $4.41 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$284.8 million in the quarter, while revenues were grew 191.96%. The analyst consensus anticipated Coty Inc.’s latest quarter earnings to come in at -$0.01 per share, but it turned out to be -$0.01, a 0.00% surprise. For the quarter, EBITDA amounted to $49.5 million. Shareholders own equity worth $839.11 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Coty Inc. (COTY) price momentum. RSI 9-day as of the close on 22 September was 56.47%, suggesting the stock is Neutral, with historical volatility in this time frame at 44.88%.

As of today, COTY’s price is $7.86 +2.85% or $0.22 from its 5-day moving average. COTY is currently trading +7.44% higher than its 20-day SMA and -2.10% lower than its 100-day SMA. However, the stock’s current price level is +7.01% above the SMA50 and -18.98% below the SMA200.

The stochastic %K and %D were 65.82% and 62.55%, respectively, and the average true range (ATR) was 0.34. With the 14-day stochastic at 64.78% and the average true range at 0.34, the RSI (14) stands at 54.94%. The stock has reached 0.09 on the 9-day MACD Oscillator while the 14-day reading was at 0.20.

Analyst Ratings

Piper Sandler reiterated its a Neutral rating on Coty Inc. (NYSE: COTY), but raised their price target to $9, indicating a potential price increase of 11.78% for the stock.

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