The Case for and Against Coty Inc. (COTY)

Coty Inc. (COTY) is an interesting player in the Consumer Goods space, with a focus on Personal Products. The stock has been active on the tape, currently trading at $19.19, down from yesterday’s close by -1.08%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Coty Inc. (COTY) currently trades with a market capitalization of $14.32 Billion. That value represents a market adjusting for revenues that have been growing by 14.84 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$64.4 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.13 on a per share basis this quarter. Perhaps, that suggests something about why 0.67% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how COTY has been acting. Looking at the stock’s movement on the chart, Coty Inc. recorded a 52-week high of $21.68. It is now trading 2.49% off that level. The stock is trading $19.95 its 50-day moving average by 0.76%. The stock carved out a 52-week low down at $14.24.

In recent action, Coty Inc. (COTY) has made a move of -3.37% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.8, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 11.75% with $441.23 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of COTY.

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