The cosmetics company reaffirmed its profit and sales outlook for 2022 and the fourth quarter
Cosmetics concern Coty Inc (NYSE:COTY) is getting a lift today, last seen up 0.8% at $6.63, after the company reaffirmed both its current-quarter and full-year profit and sales guidance. The discussion was aired as a webcast presentation at Deutsche Bank's Global Consumer Conference today.
Despite recent failure at its 40-day moving average, COTY has managed to keep some distance between its current levels and its May 25 annual low of $5.90. This is just a small silver lining though, as the security still suffers a 37.3% year-to-date deficit.
Analysts are split on the stock. Of the nine in coverage, five say "buy" or better, while four say "hold." Meanwhile the 12-month consensus price target of $11.10 is a 68.7% premium to last night's close.
Options traders, on the other hand, are incredibly bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 24.96, which stands higher than 89% of readings from the past 12 months. In other words, options traders are picking up calls at a much quicker-than-usual clip.
Now could be a good time to weigh in on COTY's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 60% stands higher than just 28% of readings from the past year. This means options traders are pricing in relatively low volatility expectations at the moment.