10 Best High Volume Penny Stocks to Buy

4. Coty Inc. (NYSE:COTY)

Price: $3.10

Market Capitalization: $2.71 B

Volume: 3,137,684

Average Volume: 6,162,612

Number of Hedge Fund Holders: 30

Coty Inc. (NYSE:COTY) is one of the Best High Volume Penny Stocks to Buy. On December 23, S&P Global Ratings reaffirmed a BB+ issuer credit rating on Coty Inc. (NYSE:COTY). This comes as the company, on December 19, announced selling the remaining 25.8% stake in Wella to KKR-managed capital accounts and investment affiliates.

According to the company’s press release, the company will receive an upfront cash payment of $750 million, along with 45% from any proceeds from further sale or an IPO of the business. Management believes that Wella’s strong recent and expected performance, along with its market valuation, will result in substantial cash proceeds for the company.

S&P Global Ratings noted that the sale is expected to bring the company’s leverage to the high-3x area by the end of 2025. The firm believes that the company will use the cash received from the sale of its stake to address debt maturities. Moreover, the firm also likes the additional 45% share that Coty Inc. (NYSE:COTY) is expected to receive in the event of further sale or IPO. S&P Global believes that this will allow the company to further address its debt in the future.

The sale of the Wella stake was part of the company’s strategic initiative started in 2020 to simplify its business. S&P Global noted that the company is also planning to explore opportunities for the sale of its Brazilian operations. However, the firm believes that selling these assets would not be easy, considering the highly competitive mass beauty international market.

Coty Inc. (NYSE:COTY), together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.