Why Coty Stock Was Moving Higher Today
Shares of cosmetics maker Coty (NYSE: COTY) were looking attractive today after the company said it was intending to sell its professional beauty business, which includes brands such as Wella, Clairol, OPI, and ghd, as well as its Brazilian operations. Investors interpreted the move as the latest step in the company's turnaround and sent the stock up 14.1% as of 11:28 a.m. EDT.
Such a move would help the company pay down debt taken on when it acquired dozens of brands, including Cover Girl, from Procter & Gamble in 2016, a deal that has largely weighed on the company's performance since and even led to a writedown of nearly $1 billion in value earlier this year. As of Coty's most recent earnings report, the company had $7.7 billion in debt.
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Source Fool.com
