Shares of Coty Inc. (NYSE:COTY) recorded -0.35% loss during trading session on April 5th, 2019. The script traded as low as $11.23 and last traded at $11.26. 7.07 million shares changed exchanged hands during trading, an increase of 52.66% from the 30-day average session volume of 14.94M shares. The firm had previously closed at $11.30. The company has $753.93M outstanding shares, price-to-earnings-growth ratio of 0.94 and a beta of 0.92. The company has a RSI of 64.77, ATR of 0.17 and a volatility of 1.34% this week. COTY has a 52 week low price of $5.91 and a 52 week high price of $18.75.
Investors have identified the tech company Coty Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 8.49B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Coty Inc. (COTY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For COTY, the company has in raw cash 445 million on their books with 3.87 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 40 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
COTY were able to record 21.6 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 82.8 million. In cash movements, the company had a total of 237.7 million as operating cash flow.
Potential earnings growth for Coty Inc. (COTY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Coty Inc. recorded a total of 2.51 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05% coming in sequential stages and their sales for the third quarter increasing by 0.19%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 956.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.55 billion. This allows shareholders to hold on to 753.93M with the revenue now reading -1280 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.18 cents a share).
Is the stock of COTY attractive?
Having a look at the company’s valuation, the company is expected to record 0.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on COTY sounds very interesting.
In related news, 10% Owner JAB Cosmetics B.V. bought 1,330,000 shares of the company’s stock in a transaction that recorded on November 20th, 2019. The purchase was performed at an average price of 8.82, for a total value of 11,729,137. As the purchase deal closes, the 10% Owner JAB Cosmetics B.V. now bought 1,470,000 shares of the company’s stock, valued at 13,566,777. Also, 10% Owner JAB Cosmetics B.V. bought 1,800,000 shares of the company’s stock in a deal that was recorded on November 16th, 2019. The shares were bought at an average cost of 9.16 per share, with a total market value of 298,108,041. Following this completion of disposal, the Director now holds 45,000 shares of the company’s stock, valued at 373,289. In the last 6 months, insiders have changed their ownership in shares of company stock by 40.60%.
1 out of 15 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Coty Inc. stock. 0 analysts has assigned a Sell rating on the COTY stock. The 12-month mean consensus price target for the company’s shares has been set at $11.01.