Let’s Take a Fresh Look at Coty Inc. (COTY)

On Wednesday, shares of Coty Inc. (NYSE:COTY) marked $11.37 per share versus a previous $10.70 closing price. With having a 6.26% gain, an insight into the fundamental values of Coty Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. COTY showed a rise of 1.07% within its YTD performance, with highs and lows between $6.89 – $14.14 during the period of 52 weeks, compared to the simple moving average of 0.48% in the period of the last 200 days.

BofA/Merrill equity researchers changed the status of Coty Inc. (NYSE: COTY) shares to a “Neutral” rating in the report published on October 23rd, 2019. Other analysts, including Citigroup, also published their reports on COTY shares. Citigroup repeated the rating from the previous report, marking COTY under “Sell” rating, in the report published on July 2nd, 2019. Additionally, COTY shares got another “Outperform” rating from Exane BNP Paribas, setting a target price of $17 on the company’s shares, according to the report published in June 4th, 2019. On May 9th, 2019, BofA/Merrill Initiated an Neutral rating and increased its price target to $12. On the other hand, Stifel Downgrade the “Hold” rating for COTY shares, as published in the report on April 18th, 2019. Citigroup seems to be going bullish on the price of COTY shares, based on the price prediction for COTY. Another “Neutral” rating came from JP Morgan.

Coty Inc. (COTY) Analysis

The present dividend yield for COTY owners is set at 0.04, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Coty Inc., the company needs to provide a healthy cash flow, currently at the value of 131.81. In addition, the growth of sales from quarter to quarter is recording -4.40%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Coty Inc. (COTY) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -61.60% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.60 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while COTY is currently recording an average of 5.11M in volumes. The volatility of the stock on monthly basis is set at 3.09%, while the weekly volatility levels are marked at 3.85%with 8.08% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $12.69, indicating growth from the present price of $11.37, which can represent yet another valuable research and analysis points that can help you decide whether to invest in COTY or pass.

What to Look for When Analyzing Coty Inc. Shares?

Coty Inc. (COTY) is based in the USA and it represents one of the well-known company operating with Consumer Goods sector. If you wish to compare COTY shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for Coty Inc., while the value 15.16 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -4.95 is supported by the yearly ESP growth of 3.10%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.70%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 40.10% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in COTY Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in COTY in the recent period. That is how The Vanguard Group, Inc. now has an increase position in COTY by 6.31% in the first quarter, owning 40.61 million shares of COTY stocks, with the value of $456.88 million after the purchase of an additional 2,409,987 shares during the last quarter. In the meanwhile, Templeton Investment Counsel LLC also increased their stake in COTY shares changed — in the first quarter, which means that the company now owns 17.82 million shares of company, all valued at $200.46 million after the acquisition of additional 17,818,680 shares during the last quarter.

BlackRock Fund Advisors acquired a new position in Coty Inc. during the first quarter, with the value of $161.93 million, and JPMorgan Investment Management, I increased their stake in the company’s shares by 11.84% in the first quarter, now owning 1,160,890 shares valued at $123.39 million after the acquisition of the additional 10.97 million shares during the last quarter. In the end, Dimensional Fund Advisors LP increased their position by 11.74% during the first quarter, now owning 9.65 million COTY shares, now holding the value of $108.58 million in COTY with the purchase of the additional 676,878 shares during the period of the last quarter. At the present, 40.10% of COTY shares are in the ownership of institutional investors.