Have Analysts Changed Their Mind About Coty Inc. (COTY), Vroom Inc. (VRM)

Coty Inc. (NYSE: COTY) shares are -68.09% down in the year-to-date (YTD) period and have moved 0.28% or $0.01 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +18.87% lower. Comparatively, the stock is -72.41% down YTD and -24.42% over the trailing 3-month period. If we look at the shorter duration, its week performance is -8.42% and -2.45% over the month.

Analyst Recommendations

On April 27, 2020, DA Davidson recommended the COTY stock is a Neutral, while earlier, Exane BNP Paribas had Downgrade the stock as a Neutral on May 13, 2020. 15 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the COTY stock is a “Hold. 1 of the 15 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.59 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.47. The forecasts give the Coty Inc. stock a price target range of $9.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.10. The two limits represent an upside potential of 60.11% or -15.81%.

Earnings Forecast

Analysts estimate the earnings to decrease -325.00% in the current quarter to -$0.01, down from the $0.07 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.18, down -18.20% from -$0.25 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.04 and $0.27. Wall Street estimates earnings per share to be at an average of $0.35 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 19 over the last 12 months, while SEC filings reveal that there have been 9 insider sales over the same period. Insiders have purchases 5,204,354 shares while those sold by company executives and officers stand at 1,367,765. The last 3 months have seen insiders trade a total of 685 and 0 in purchases and sales respectively.

Laubies Pierre, a Chief Executive Officer at the company, sold 3,260,329 shares worth $37.47 million at $11.49 per share on Feb 27. The 10% Owner had earlier bought another 3,260,329 COTY shares valued at $37.47 million on Feb 27. The shares were bought at $11.49 per share. Pieraccioni Giovanni (President, EMEA) bought 7,600 shares at $11.62 per share on Feb 13 for a total of $88312.0 while Pieraccioni Giovanni, (President, EMEA) bought 7,603 shares on Feb 12 for $89867.0 with each share fetching $11.82.

Vroom Inc. (NASDAQ:VRM), on the other hand, is trading around $73.87 with a market cap of $8.97B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $69.88 and spell out a less modest performance – a -5.71% return. Some analysts are even forecasting -$2.45 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Vroom Inc. (VRM) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

VRM’s operating expenses over the recent quarter were at $49.48 million. This represented a 80.45% of the company’s total revenues which amounted $253.09 million.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $963.21 million from $563.39 million over the previous quarter. The company’s free cash flow for the quarter was -$3.12 million.

Insider activity

Insiders have transacted a total of 13 times at Vroom Inc. over the last 6 months, with insider purchases undertaken 13 times and accounting for 51,882,182 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 13.0 shares.

Major holders

Insiders own 6.50% of the company shares, while shares held by institutions stand at 39.00% with a share float percentage of 80.41M. The top two institutional holders are Price (T.Rowe) Associates Inc with over 16.03 million shares worth more than $835.75 million. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 13.43% of shares outstanding.

The other major institutional holder is Durable Capital Partners LP, with the investment firm holding over 5.43 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $282.91 million and represent 4.55% of shares outstanding.