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Coty Declared an Annual Dividend of $0.28 Per Share

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Price movement

Coty (COTY) has a market cap of $9.0 billion. It rose by 0.15% to close at $26.91 per share on August 1, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.79%, 3.5%, and 5.0%, respectively, on the same day. COTY is trading 0.02% above its 20-day moving average, 1.7% above its 50-day moving average, and 0.68% below its 200-day moving average.

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Related ETF and peers

The AdvisorShares TrimTabs Float Shrink ETF (TTFS) invests 0.93% of its holdings in Coty. The ETF aims to outperform broad US equities. The actively managed, equal-weighted fund selects stocks based on trends in outstanding shares, company leverage, and free cash flow. The YTD price movement of TTFS was 6.1% on August 1.

The market caps of Coty’s competitors are as follows:

  • The Procter & Gamble Company (PG) — $232.3 billion
  • Walgreens Boots Alliance (WBA) — $86.0 billion
  • The Estée Lauder Companies (EL) — $34.2 billion

Coty declared a dividend

Coty has declared an annual dividend of $0.28, a rise of 10%, on its Class A and Class B common stock. The dividend will be paid on August 19, 2016, to shareholders of record at the close of business on August 11, 2016.

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Performance of Coty in fiscal 3Q16

Coty reported fiscal 3Q16 net revenue of $950.7 million, 1.8% higher than its $933.8 million in revenue in fiscal 3Q15. Revenue from its fragrances and skin and body Care segments fell by 3.7% and 11.6%, respectively, in fiscal 3Q16. However, revenue from its color cosmetics segment rose by 11.2% in fiscal 3Q16 compared to fiscal 3Q15.

Coty also reported revenue of $14.3 million from its Brazilian beauty business acquisition in fiscal 3Q16. The company’s cost of sales as a percentage of net revenue rose by 2.9%, and its operating income fell by 79.9% in fiscal 3Q16 compared to 3Q15. Coty also reported restructuring costs and acquisition-related costs of $6.6 million and $37.0 million, respectively, in fiscal 3Q16, compared to $3.9 million and $0.3, respectively, in fiscal 3Q15.

Net income and EPS

Coty’s net income and EPS (earnings per share) fell to -$26.8 million and -$0.08, respectively, in fiscal 3Q16, compared to $75.5 million and $0.21, respectively, in fiscal 3Q15.

Coty’s cash and cash equivalents and inventories rose by 7.4% and 3.8%, respectively, in fiscal 3Q16 compared to fiscal 4Q15. Its current ratio fell to 1.1x, and its debt-to-equity ratio rose to 14.3x in fiscal 3Q16, compared to a current ratio and a debt-to-equity ratio of 1.2x and 5.0x, respectively, in fiscal 4Q15.

Next, we’ll discuss Silgan Holdings.

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