Coty (COTY, $12.09) will invest $600 million for 51% stake in Kylie Jenner's cosmetics line
Coty has decided to spend $600 million for a majority stake in Kylie Jenner’s cosmetics brand.
The beauty company plans it to invest the amount for acquiring a 51% stake in Kylie Cosmetics.
Under the deal, Jenner and her team will lead the social media and product communications segments, while Coty will work on global promotion of her brand. Kylie Jenner has 150 million followers on Instagram, and 30 million on Twitter.
Kylie Cosmetics raked in $177 million in revenue over the past year, according to Coty.
In June, Coty announced a $600 million turnaround plan that includes layoffs and streamlining its businesses. The company also revealed a $3 billion write down in value of brands it acquired in 2015 from Procter & Gamble, which included CoverGirl and Clairol.
Coty’s investment in Kylie Cosmetics is expected to close in the third quarter of 2020. Coty called the transaction a "key milestone" for the company.
COTY's Stochastic Oscillator entering oversold zone
The Stochastic Oscillator for COTY moved into oversold territory on February 04, 2025. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for COTY crossed bullishly above the 50-day moving average on January 28, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where COTY advanced for three days, in of 272 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for COTY moved out of overbought territory on January 28, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on February 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on COTY as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for COTY turned negative on February 04, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
COTY moved below its 50-day moving average on February 03, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COTY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
COTY broke above its upper Bollinger Band on January 21, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for COTY entered a downward trend on January 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. COTY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.406) is normal, around the industry mean (17.160). P/E Ratio (33.971) is within average values for comparable stocks, (204.360). Projected Growth (PEG Ratio) (1.933) is also within normal values, averaging (3.832). Dividend Yield (0.000) settles around the average of (0.107) among similar stocks. P/S Ratio (1.753) is also within normal values, averaging (115.095).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COTY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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General Information
a maker of beauty products, fragrances, color cosmetics and skin care products
Industry HouseholdPersonalCare