Gordon von Bretten, Chief Transformational Officer at
Coty Inc (COTY), recently added 38,776 shares. The buy increased his holdings by 26 percent, and came to a total price of just over $302,000.
This marks the first insider buy of 2022. Going into the last year, insiders have been both buyers and sellers of shares, with sellers having a big advantage thanks to a large institutional sale.
Overall, insiders at the company own over 57 percent of shares.
Shares of the cosmetics company are down about 14 percent in the past year, far underperforming the overall stock market. That’s even as the company’s revenues increased nearly 12 percent in the past year.
However, the company’s strong presence in the cosmetics market makes it a strong buy here.
Action to take: Shares are somewhat fairly valued here, but are capable of a further move higher in the coming months, particularly on a market rebound. Today’s investors can likely see market-beating gains in the next few months. However, shares don’t pay a dividend at this time.
For traders, the August $9 calls, last going for about $0.92, offer mid-to-high double-digit upside potential from here. That can leverage a move higher in shares in the coming months, and traders should look to take profits on a jump higher in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.