Coty Boosts Share Repurchase Program By $600M To Accommodate Planned Hedged Share Buyback Transaction Of Additional 25M Shares
Portfolio Pulse from Benzinga Newsdesk
Coty Inc. (NYSE:COTY) has expanded its share repurchase program by $600 million, bringing the total authorization to about $1 billion. The company plans to hedge its exposure through total return swaps with banks for a future buyback of approximately 25 million shares in fiscal 2026.
November 13, 2023 | 11:03 pm
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Coty Inc. has increased its share repurchase authorization by $600 million, aiming for a total of $1 billion in buybacks. The company is also planning a hedged buyback of 25 million shares in fiscal 2026.
The increase in the share repurchase program typically signals a company's confidence in its financial stability and future prospects, which can be positive for investor sentiment. The hedging strategy indicates a proactive approach to managing potential price fluctuations. This news is likely to be viewed positively by investors in the short term, potentially leading to an uptick in the stock price.
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