Coty Inc. (COTY) Bundle
Who Invests in Coty Inc. (COTY) and Why?
Who Invests in Coty Inc. (COTY) and Why?
Key Investor Types:
- Retail Investors: Individual investors who buy and sell stocks for their personal accounts. As of September 30, 2024, retail ownership accounted for approximately 45% of the total outstanding shares of Coty Inc.
- Institutional Investors: Entities like mutual funds, pension funds, and insurance companies. As of the latest quarter, institutional ownership represented around 50% of the shares, indicating strong confidence from these entities.
- Hedge Funds: Actively managed funds that employ various strategies to earn active return. Hedge funds held about 5% of the total shares, reflecting a more speculative interest in the company.
Investment Motivations:
- Growth Prospects: Investors are attracted to Coty Inc. due to its strong growth trajectory, with net revenues reaching $1.67 billion for the three months ended September 30, 2024, compared to $1.64 billion in the same period of 2023.
- Market Position: The company ranks among the top players in the beauty industry, particularly in prestige fragrances, which saw a 5% increase in sales year-over-year.
- Profitability: The adjusted net income attributable to Coty Inc. was $128.1 million for the quarter ending September 30, 2024, up from $74.1 million in the previous year, indicating improved profitability.
Investment Strategies:
- Long-Term Holding: Many institutional investors adopt a long-term investment horizon, with a focus on the company's growth potential and market position.
- Short-Term Trading: Retail investors often engage in short-term trading, capitalizing on price fluctuations. The average daily trading volume for Coty Inc. shares is approximately 5 million.
- Value Investing: Some investors view Coty Inc. as undervalued given its strong brand portfolio and recent financial performance, making it a target for value investing strategies.
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 45% | Growth Prospects | Short-Term Trading |
| Institutional Investors | 50% | Market Position | Long-Term Holding |
| Hedge Funds | 5% | Profitability | Value Investing |
The investor profile of Coty Inc. reflects a diverse range of interests and strategies, attracting a mix of retail and institutional investors focused on both growth and value opportunities. The company's recent financial performance, including a reported operating income of $237.8 million for the quarter ending September 30, 2024, further reinforces its appeal to various investor types.
Institutional Ownership and Major Shareholders of Coty Inc. (COTY)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in Coty Inc. include:
| Institution | Shares Held | Percentage Ownership |
|---|---|---|
| JAB Beauty B.V. | Approximately 479.5 million | 55% |
| The Vanguard Group, Inc. | Approximately 55.5 million | 6.4% |
| BlackRock, Inc. | Approximately 52.0 million | 6.0% |
| State Street Corporation | Approximately 43.0 million | 5.0% |
| Wellington Management Group LLP | Approximately 32.0 million | 3.7% |
Recent changes in ownership indicate that institutional investors have shown a mixed trend:
- JAB Beauty B.V. has maintained its stake, holding approximately 55% of shares.
- The Vanguard Group increased its holdings from 5.8% to 6.4%.
- BlackRock, Inc. decreased its stake slightly from 6.5% to 6.0%.
- State Street Corporation's holdings remained relatively stable at 5.0%.
- Wellington Management increased its stake from 3.5% to 3.7%.
Institutional investors play a significant role in the stock price and strategic direction of Coty Inc. Their substantial ownership often leads to increased scrutiny of management practices, pushing for enhanced performance and corporate governance. The presence of large institutional holders can also stabilize the stock price, as their investment strategies generally focus on long-term growth.
As of September 30, 2024, Coty Inc. reported a total of 869.9 million shares outstanding, with institutional investors collectively holding approximately 60% of the total shares. This level of institutional ownership reflects confidence in the company's strategic initiatives and financial performance, particularly following the recent increase in net income attributed to Coty Inc. of $82.9 million for the three months ended September 30, 2024, compared to $1.6 million in the same period the previous year.
Key Investors and Their Influence on Coty Inc. (COTY)
Key Investors and Their Impact on COTY
As of September 30, 2024, JAB Beauty B.V. is the largest shareholder of COTY, holding approximately 55% of the Class A Common Stock. This includes all voting interests of Mr. Peter Harf, the Company's Chairman, and HFS Holdings S.à r.l., which is also beneficially owned by Mr. Harf.
Notable Investors
Other significant investors include KKR Rainbow Aggregator L.P., which previously held shares of the Convertible Series B Preferred Stock. As of December 31, 2021, KKR had fully redeemed or exchanged its Series B Preferred Stock.
Investor Influence
The influence of JAB Beauty B.V. is substantial. As the majority stockholder, their decisions can significantly affect COTY's strategic direction, including potential mergers and acquisitions, operational restructuring, and capital allocation. The management team, including CEO Sue Nabi, has received equity from JAB, aligning their interests with those of the investors.
Recent Moves
In recent months, JAB Beauty B.V. transferred 10.0 million shares to CEO Sue Nabi on October 29, 2021, and 5.0 million shares on September 18, 2023. Additionally, the company has an ongoing share repurchase program, with $796.8 million remaining under the authorization as of September 30, 2024.
| Investor | Ownership (%) | Recent Activity |
|---|---|---|
| JAB Beauty B.V. | 55% | Transferred 15 million shares to CEO Sue Nabi |
| KKR Rainbow Aggregator L.P. | Previously held Convertible Series B Preferred Stock | Fully redeemed/exchanged shares by December 31, 2021 |
The ongoing strategic initiatives and active share repurchase programs indicate a commitment to enhancing shareholder value, influenced heavily by the major investors' decisions and actions.
Market Impact and Investor Sentiment of Coty Inc. (COTY)
Market Impact and Investor Sentiment
Investor Sentiment: As of September 30, 2024, the current sentiment of major shareholders remains predominantly positive. JAB Beauty B.V., the largest stockholder, holds approximately 55% of the Class A Common Stock. This significant ownership suggests a strong alignment with the company's long-term strategy and prospects.
Recent Market Reactions: The stock market has shown a positive response to recent changes in ownership and large investor moves. The company reported a net income attributable to common stockholders of $79.6 million for the three months ended September 30, 2024, compared to a loss of $1.7 million in the same period of 2023. This turnaround has likely bolstered investor confidence and market perception.
Analyst Perspectives: Analysts have expressed optimism regarding the influence of key investors on the company's future. The adjusted net income attributable to the company increased by 73% to $128.1 million in the latest quarter. Furthermore, the adjusted operating income margin remains strong at 18.2%. Analysts emphasize that the backing from JAB Beauty and other institutional investors is expected to support continued growth and strategic initiatives.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $1,671.5 million | $1,641.4 million | 2% |
| Net Income Attributable to Coty Inc. | $82.9 million | $1.6 million | >100% |
| Adjusted Net Income | $128.1 million | $74.1 million | 73% |
| Operating Income | $237.8 million | $197.5 million | 20% |
| Adjusted Operating Income Margin | 18.2% | 18.4% | -0.2% |
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Resources:
- Coty Inc. (COTY) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Coty Inc. (COTY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coty Inc. (COTY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.