Coty Inc (NYSE: COTY) is having an incredibly strong start to the trading session this morning, and for good reason. Investors are seeing a sign of confidence in the fact that the CEO of the company just purchased a large amount of shares. Today, we’ll talk about:
- The insider buying;
- what we’re seeing from COTY stock as a result; and
- what we’ll be watching for ahead.
COTY CEO Buys Shares
As mentioned above, Coty is having a great day in the market today as investors are made aware that the CEO of the company has purchased shares.
According to recent reports, Pierre Laubies purchased 648,228 shares of the stock on May 10, 2019. The average price of the shares purchased came to $11.64 per share. This brings the total value of the transaction to $7.5 million.
This is great news for COTY investors. After all, when insiders purchase shares, it shows that they have confidence in the future of the company that they are part of. In this case, the insider buy was no small move. At $7.5 million the CEO of the company is showing that he expects that the stock is going to rise in a big way.
It’s also worth mentioning that Pierre-andre Terisse, CFO at the company snapped up shars as well. On May 10, 2019, Terisse purchased 152,000 shares at an average price of $11.73 per share.
On May 14, 2019, Luc Volatier, Chief Global Supply Officer, purchased 451,263 shares of COTY at an average price of $11.51 per share. With directors Peter Harf and Oliver Gudget also recently purchasing 4,675,301 and 45,000 shares in the month of May, repsectively.
With so much insider activity here, investors are expecting to see strong growth ahead, and reacting to these expectations in the market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Coty, the news proved to be overwhelmingly positive.
After all, insider purchases align the interest of insiders with those of investors while showing confidence in the future growth of the company. So, with all of these recent isider buys, it’s not surprising to see that excited investors are pushing the stock up in the market this morning.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:00), COTY is trading at $12.60 per share after a gain of $0.48 or 3.96% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on COTY. When we see a flurry of insider buys, news tends to follow. So, we’re interested in seeing what happens ahead. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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