The purchase follows a slide in Coty shares after last week’s quarterly results.
Coty shares gained 3.3% in after-market trading on Tuesday, following a company disclosure that CEO Sue Nabi bought shares worth $1 million.
According to the filing, reported by The Fly, Nabi acquired 260,000 shares on Aug. 22, a day after the stock plummeted to a fresh low following its quarterly report.
On Stocktwits, the retail sentiment has held in the ‘extremely bullish’ zone since the results, even as user chatter reflected frustration with Nabi’s leadership and speculation over Coty’s rumored buyout plan.
A user said the company has been in a “downward spiral” since Nabi took over in September 2020, and it needs to “stop stock compensation to management and start aggressive buybacks.”
“No reason to be under $7 with such high revenues,” they said.
Coty shares dropped 21.6% on Aug. 21, after the company reported a surprise quarterly adjusted loss and wider-than-expected revenue decline. It also forecast that same-store sales will decline in the first and second quarters of fiscal year 2026.
The cosmetics and fragrance company has been facing pressures for several quarters, exacerbated by higher tariffs more recently. Sales and adjusted EPS declined 3.7% and 40.5%, respectively, in its last fiscal year, which ended in June.
CFO Laurent Mercier noted on the post-earnings call that retailers are destocking, while consumers are leaning towards cheaper options amid economic uncertainties.
As of last close, Coty’s stock has declined 47% year-to-date.
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