Sue Nabi, Coty CEO, Buys $1.0m Worth of Stock Despite Company's Recent Financial Struggles

Coty Inc. CEO Sue Nabi recently bought $1.0m worth of stock at $3.92, increasing her holding by 0.8%. This is the largest insider purchase in the last year, and insiders have not sold any shares. Nabi's conviction in the company's future is positive, but Coty's lack of profit over the last twelve months is a cautionary note. Despite this, insider ownership is high at 5.9%.

Coty Inc. (NYSE: COTY) has been the subject of intense scrutiny following recent financial setbacks and an ongoing investigation. CEO Sue Nabi recently demonstrated her confidence in the company's future by purchasing $1 million worth of stock at $3.92 per share, increasing her holding by 0.8%. This is the largest insider purchase in the last year, with insiders having not sold any shares during this period. Despite the recent acquisition, Coty's lack of profit over the last twelve months serves as a cautionary note.

The stock purchase comes amidst a class action lawsuit investigation by Bleichmar Fonti & Auld LLP (BFA) for potential securities fraud. The firm is urging investors to contact them for more information [1]. The investigation follows Coty's August 20, 2025, press release reporting an unexpected loss for its full fiscal year 2025 and fourth quarter. The company attributed the loss to "delay[s] in [identifying] weaknesses in our U.S. execution, retailer inventory buildup and headwinds from lapping fiscal year ’24 innovation, all of which were significant pressure points in fiscal year ‘25" [1].

Additionally, Coty shares gained 3.3% in after-market trading on Tuesday, following Nabi's stock purchase. This increase was likely driven by the positive sentiment expressed by retail investors on Stocktwits, who held a bullish stance despite frustration with Nabi’s leadership and speculation over a potential buyout plan [2].

The stock's recent volatility has been exacerbated by higher tariffs and economic uncertainties, leading to a 47% year-to-date decline. CFO Laurent Mercier noted that retailers are destocking while consumers are opting for cheaper alternatives [2]. Despite these challenges, insider ownership remains high at 5.9%.

Coty's latest developments underscore the importance of staying informed about a company's financial health and management's actions. Investors are advised to monitor the ongoing investigation and evaluate the company's strategic direction under Nabi's leadership.

References:
[1] https://www.morningstar.com/news/business-wire/20250827161305/coty-breaking-news-bfa-law-is-investigating-coty-inc-for-securities-fraud-after-stock-drops-21-on-us-execution-investors-are-urged-to-contact-the-firm
[2] https://stocktwits.com/news-articles/markets/equity/coty-ceo-stake-buy-sends-stock-up-over-3-after-hours-retail-s-extremely-bullish/chsxAi4Rdk1