Shares of makeup and fragrance maker Coty (COTY) - Get Report gained more than 5% on Wednesday after the company disclosed that its CEO, chief financial officer and other senior executives had purchased large chunks of the company's stock, a sign that senior management feels the share price at current levels is worth owning.
According to Securities and Exchange Commission filings, Coty CEO Pierre Laubies purchased 648,228 shares of stock on May 10 at an average price of $11.64 a share - a roughly $7.5 million stake. On the same day, Coty Chief Financial Officer Pierre-andre Terisse purchased 152,000 shares at an average price of $11.73 a share to the tune of approximately $1.8 million.
Other insiders have also bought shares in recent days, including Chief Global Supply Officer Luc Volatier, who bought 451,263 shares at an average price of $11.51 a share, and directors Peter Harf and Oliver Gudget also recently purchasing 4,675,301 and 45,000 worth of shares, respectively.
The insider stock-buying spree convinced investors to jump on board on Wednesday, pushing Coty shares up 5.28% to $12.77.
The Cover Girl and Rimmel brand maker last week posted weaker-than-expected fiscal third-quarter earnings but confirmed its full-year outlook and said recent supply-chain disruptions had been addressed.
Looking into the final months of the fiscal year, Coty said it remains "on track" for a moderate decline in adjusted operating income, compared to the whole of 2018, and continues to expect positive cash flow and free cash-flow generation.