Share purchase details
Coty Inc. (NASDAQ: COTY) reported that Chief Financial Officer Laurent Mercier acquired 5,000 shares of Class A common stock on February 10, 2026. The reported purchase price was $2.6499 per share, bringing the transaction value to $13,249.
Following the transaction, Mercier directly holds 500,031 shares of Coty Inc. The acquisition occurred while Coty shares were trading near the low end of their recent range; the current price of $2.61 sits close to a 52-week low of $2.44 and the shares have declined nearly 53% over the past year according to market data referenced in company reporting. The proximity to the yearly low is noted as a possible indication that management sees value at these levels.
Company financial context
Coty has not recorded profitability over the last twelve months. At the same time, analysis referenced by the company points to an undervaluation based on a Fair Value assessment and to analyst expectations that Coty will return to profitability within the current year. Gross profit margins remain relatively high at 63.7%, a metric highlighted in the analysis.
The company released second-quarter fiscal 2026 results that presented a mixed picture. Reported earnings per share were $0.14, below the forecasted $0.18, representing a negative surprise of 22.22%. Revenue for the period was $1.68 billion, exceeding expectations of $1.66 billion.
Despite the top-line beat, adjusted EBITDA for the period was $330 million, which fell short of both Canaccord Genuity's estimate of $337.5 million and the Street's expectation of $335.9 million. Year-over-year sales grew by 0.5%.
Market and ratings response
In response to the quarterly results, Canaccord Genuity lowered its price target for Coty from $3.50 to $2.50 while keeping a Hold rating on the shares, citing the mixed nature of the results. Moody's Ratings affirmed Coty’s Ba1 Corporate Family Rating but revised the outlook from stable to negative, attributing the change to weaker-than-expected operating performance.
What the transaction and results signal
The insider purchase by the CFO is a small, targeted buy relative to his total holdings and occurred against a backdrop of continued operational challenges for the company. The combination of a near-term negative ratings outlook, an earnings miss, and an adjusted EBITDA shortfall have prompted analysts to reduce near-term expectations even as some valuation assessments suggest the shares may be undervalued.
Note: This report restricts itself to the facts disclosed in company filings and related analyst commentary and does not include additional external commentary.