Shares of Coty (COTY) stock jumped nearly 20% in the pre-market Tuesday morning after JAB Holding Company, a privately held German investment firm headquartered in Luxembourg, made an offer to buy 150 million shares of the company’s stock at $11.65 per share.
JAB is holding a tender offer to buy the shares. The $11.65 tender price is a 21% premium to yesterday’s closing price of $9.66.
JAB Holding’s portfolio includes investments in areas of fast food, consumer goods, and fashion brands, among other things. Should Coty, the cosmetic maker known for the Covergirl line of makeup, decide to accept the full cash offer, JAB Holding Corp will own a majority stake in the company.
JAB Holding said that they believe in the company’s long-term ability to prosper, with Coty’s recent management changes being important first-step in addressing the company’s recent performance.
COTY stock is currently up more than 64% from Thursday’s closing price of $7.06 after Coty released quarterly earnings, topping estimates in both earnings per share and revenue.
COTY stock is currently trading at $11.02 as of 3:05 PM on Tuesday, Feb 12, a gain of $1.35, or 13.96% from the previous closing price of $9.66. Coty stock has traded between $10.89 and $11.36 so far today. Volume today is more active than usual. So far 41,337,896 shares have traded compared to average volume of 11,574,722 shares.
Stock Score Report, InvestorsObserver’s proprietary scoring system gives COTY stock a score of 60 out of a possible 100. That score is based on three component scores. A fundamental score of 44, a long-term technical score of 62 and a short-term technical score of 75.
Our proprietary system combines short and long-term technical factors, Wall Street’s opinion, and other fundamental factors into an overall score that measures a stock’s suitability for investment.
Meanwhile, the major indices are rallying. The Dow Jones Industrial Average is higher by 1.46% to 25,417.84. The NASDAQ is higher by 1.4% to 7,410.51. The S&P 500 has gained 1.36% to 2,746.63.