Coty Inc. (COTY) CEO Buys Another 648,228 Shares

03:28 05/15/2019

Apparently, share of Coty Inc. COTY  don’t know the meaning of down recently.

Even after a considerable run higher, the stock is breaking out, and drawing significant interest. Insiders appear bullish, too.  In fact, over the last few weeks:

  • CEO Pierre Laubies bought another 648,228 shares at $11.64 a share for $7.5 million. 

  • The CFO bought 152,000 shares of COTY stock on 05/10/2019.

  • The Chief Global Supply Officer bought 451,263 shares of COTY stock on 05/14/2019.

  • Another Director bought 4,675,301 shares of COTY stock on 05/13/2019.

  • And another Director bought 45,000 shares of COTY stock on 05/10/2019.

That tells us they’re very confident in further upside.

Granted, the company did post a revenue shortly fall and is seeing supply chain issues.

In fact, the company has been struggling with supply chain issues related to streamlining of its distribution centers in Europe and the United States, since its acquisition of about 40 beauty brands from Procter & Gamble in 2016.  However, Coty said it has largely resolved these constraints and expects it to have a minimal impact in the fourth quarter.

In addition, sales in the consumer beauty segment fell 17.8% $840.3 million, as the company's brands face market share losses and continued weakness. 'The weak top-line result demonstrates that there is still much to be done to turnaround the business,' Chief Executive Officer Pierre Laubies noted.  At the same time, net loss attributable to Coty narrowed to $12.1 million, or 2 cents per share, in the third quarter ended March 31, from $77 million, or 10 cents per share, a year earlier on lower restructuring costs.

Despite signs of fundamental weakness, the insider buying is encouraging.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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