Is Coty Inc. (COTY) positioned for future growth?

Coty Inc. (NYSE: COTY) stock fell -2.69% on Monday to $11.59 against a previous-day closing price of $11.91. With 4.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.14 million shares. During the session, the Household & Personal Products company that operates in wider Consumer Defensive sector, reached to the highest price of $11.87 whereas the lowest price it dropped to was $11.13. The 52-week range on COTY shows that it touched its highest point at $13.46 and its lowest point at $6.19 during that stretch. It currently has a 1-year price target of $13.17. Beta for the stock currently stands at 1.90.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of COTY was down-trending over the past week, with a drop of -0.34%, but this was up by 3.95% over a month. Three-month performance dropped to -6.83% while six-month performance rose 6.62%. The stock gained 50.13% in the past year, while it has gained 35.40% so far this year. A look at the trailing 12-month EPS for COTY yields 0.56 with Next year EPS estimates of 0.56. For the next quarter, that number is 0.16. This implies an EPS growth rate of 739.20% for this year and 20.52% for next year. EPS is expected to grow by 18.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.40%.

Float and Shares Shorts:

At present, 851.70 million COTY shares are outstanding with a float of 324.38 million shares on hand for trading. On Aug 30, 2023, short shares totaled 22.7 million, which was 2.66% higher than short shares on Jul 30, 2023. In addition to Mr. G. Peter Harf as the firm’s Founder & Independent Chairman, Ms. Sue Y. Nabi serves as its CEO & Director.

Institutional Ownership:

Other institutions hold 67.19% of COTY, in contrast to 21.41% held by mutual funds. Shares owned by individuals account for 19.83%. As the largest shareholder in COTY with 4.05% of the stake, The Vanguard Group, Inc. holds 34,521,575 shares worth 34,521,575. A second-largest stockholder of COTY, BlackRock Fund Advisors, holds 28,426,447 shares, controlling over 3.33% of the firm’s shares. BNP Paribas Arbitrage SNC is the third largest shareholder in COTY, holding 26,788,911 shares or 3.14% stake. With a 1.39% stake in COTY, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 11,837,891 shares are owned by the mutual fund manager. The Hardman Johnston Global Equity, which owns about 1.25% of COTY stock, is the second-largest Mutual Fund holder. It holds 10,625,617 shares valued at 122.83 million. Vanguard Total Stock Market ETF holds 1.24% of the stake in COTY, owning 10,612,116 shares worth 122.68 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COTY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With COTY analysts setting a high price target of $15.00 and a low target of $11.00, the average target price over the next 12 months is $13.17. Based on these targets, COTY could surge 29.42% to reach the target high and fall by -5.09% to reach the target low. Reaching the average price target will result in a growth of 13.63% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded COTY stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 10,000,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 12,443,540 while 1,244,341 shares were sold.

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