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AGNC offers transparent exposure to agency MBS with virtually zero credit risk, while RITM's hybrid model remains a "black box" with credit portfolio risks. My previous recommendation favoring DX over RITM generated a 15% alpha in just four months, confirming the wisdom of betting on "pure-play" agency mREITs. AGNC delivers an excellent dividend yield of 13% with monthly payouts, which creates better compound interest potential compared to RITM's 10% quarterly payouts.

Rithm Capital offers a more attractive risk/reward profile than AGNC Investment despite a lower headline yield (10.2% vs. 13.4%). RITM trades at a valuation discount: 4.33x FY1 P/E and 22% below book, versus AGNC's 6.83x P/E and 20% premium to book. RITM's diversified revenue, lower leverage ratio, and lower dividend payout ratio (43% vs. AGNC's 96%) enhance resilience in uncertain rate environments.

NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm” or the “Company”) announced today that it has priced its previously announced offering of $500 million aggregate principal amount of 8.500% senior unsecured notes due 2031 (the “notes”). The Company intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of certain indebtedness. The notes will not have any registration rights.

The offering is expected to close on May 14, 2026, subject to customary closing conditions.

The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and, outside the United States, in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT RITHM CAPITAL

Rithm Capital Corp. is a global alternative asset manager with significant experience managing credit and real estate assets. Rithm’s integrated platform spans asset-based finance, residential and commercial real estate lending, mortgage servicing rights, and structured credit. Through platforms including Elecor Properties, Newrez, Genesis Capital, Sculptor Capital Management, and Crestline Investors, Rithm employs a unique owner-operator model to drive value for shareholders and investors.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the Company’s ability to complete the offering, the intended use of proceeds of the offering and the expected closing date of the offering. Forward-looking statements are not historical in nature and can be identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “continue,” “intend,” “should,” “would,” “could,” “goal,” “objective,” “will,” “may,” “seek,” or similar expressions or their negative forms. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Rithm does not assume any duty or obligation to update or supplement any forward-looking statements. Because forward-looking statements are, by their nature, uncertain and subject to numerous assumptions, risks and uncertainties, actual results or future events, circumstances or developments could differ materially from those anticipated. Factors that could cause such differences include those set forth in the section entitled “Risk Factors” in Rithm’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, available at www.sec.gov. The list of factors is not exhaustive and additional risks may affect future results.

More News From Rithm Capital Corp.

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NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM7 (NRMLT 2026-NQM7), a $483.8 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (51.9%). In addition, all loans will be serviced by NewRez LLC.

NRMLT 2026-NQM7 is collateralized by a pool of 890 residential mortgages seasoned approximately one months. Borrowers in NRMLT 2026-NQM7 possess a non-zero WA original credit score of 757 and exhibit a weighted average (WA) original loan-to-value (LTV) of 71.5% and a WA combined LTV (CLTV) of 71.6%.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publications

RMBS KCAT NRMLT 2026-NQM7 Tear Sheet Methodologies

RMBS: U.S. RMBS Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015201

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Rithm Capital Corp. preferred D shares offer an attractive risk-reward profile near current prices, with a 7.08% stripped yield. RITM-D provides a compelling 9.1% annualized yield-to-call if redeemed soon after call protection ends on 11/15/2026. If not called, RITM.PR.D resets to a strong floating yield (10.56% at current rates), likely trading above par barring a recession.

Rithm Capital Corp. (RITM) preferred share RITM-B is in our buy range, offering a compelling risk-reward profile for income-focused investors. RITM-B trades below call value with a stripped yield of 9.78%, and an annualized yield-to-call of 18%, making it attractive relative to sector peers. RITM-B is suitable for low-risk and buy-and-hold investors seeking higher yield, though it carries slightly more risk than Annaly Capital Management's preferreds.

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming May 22, 2026 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) common stock between May 7, 2025 and February 4, 2026, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON COTY INC. (COTY), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

On February 5, 2026, Coty released its second quarter fiscal 2026 financial results, revealing results below market expectations, including that net revenue decreased 6% on a like-for-like basis, reported gross margins decreased 200 basis points, and adjusted operating income declined 19%. The Company also withdrew its 2026 guidance for EBITDA and lowered its near-term outlook, stating “Coty anticipates Q3 gross margins to decline 200 to 300 basis points” and “approximately breakeven EPS.”

In the Company’s earnings call, recently appointed interim CEO, Markus Strobel, noted “we have not been delivering at the level we should” and the Company would need to invest in “disciplined execution, operational effectiveness and sufficient multiyear marketing support.” The Company’s CFO, Laurent Mercier also noted “the main headwind is from Consumer Beauty.”

On this news, Coty’s stock price fell $0.49, or 15.56%, to close at $2.66 per share on February 6, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Coty’s Consumer Beauty segment was underperforming; (2) margins were compressed by increased marketing investments; (3) there was slowing growth in the Prestige fragrance marker; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Coty securities between May 7, 2025 and February 4, 2026, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is May 22, 2026.

Contact Us To Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:

Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

More News From The Law Offices of Frank R. Cruz

San Francisco, California--(Newsfile Corp. - May 20, 2026) - National shareholder rights law firm Hagens Berman alerts Coty Inc. (NYSE: COTY) investors that a new securities class action lawsuit has been filed in the U.S. District Court for the Southern District of New York.

The newly filed litigation significantly expands the timeframe for recovery. The action is brought on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025 and February 4, 2026, inclusive (the "Expanded Class Period").

The firm urges investors in Coty who suffered significant losses to submit your losses now. The firm also encourages witnesses who may be able to assist in the investigation to contact its attorneys.

View our latest video summary of the allegations: 

Cannot view this video? Visit:
https://www.youtube.com/watch?v=jQoWASUHcgI

Lead Plaintiff Deadline: May 22, 2026
Expand Class Period: May 7, 2025 - Feb. 4, 2026
Visit: www.hbsslaw.com/investor-fraud/coty
Contact the Firm Now: [email protected]
844-916-0895

Coty Inc. (COTY) Securities Class Action: The Expanded Class Period and Core Allegations

While the initial complaint filed against Coty focused on statements made in November 2025, the newly expanded litigation alleges that Coty's campaign of misrepresentation began earlier, on May 7, 2025.

According to the lawsuit, on May 6, 2025, during post-market hours, Coty and its senior executives disseminated overwhelmingly positive material representations concerning the company's growth potential and operational health heading into fiscal year 2026. Management repeatedly assured the market that it possessed a strong innovation pipeline, predictable retail trends, and the operational discipline necessary to steadily improve fragrance and beauty sales.

In reality, the complaint alleges that throughout the Expanded Class Period, severe, structural headwinds were concealed from the investing public. Specifically, it is alleged that Coty failed to disclose that:

The Consumer Beauty market was severely underperforming and lagging behind competitors;Profit margins were being aggressively compressed by escalating, unsustainable marketing investments; andPrestige fragrance growth was experiencing a sharp, undisclosed deceleration.The Truth Emerges

Investors began to learn the true state of Coty's business through a series of sudden operational updates. On December 12, 2025, Coty abruptly announced the departure of its CEO, Sue Y. Nabi, without an adequate operational explanation, causing an immediate drop in share value.

The full extent of the operational collapse was laid bare after the market closed on February 4 and 5, 2026, when Coty announced its Q2 2026 financial results. The company revealed that operating income in its Consumer Beauty segment had plummeted by over 70% year-over-year, while Prestige operating income dropped over 18%. Compounding the shock, Coty completely withdrew its full-year fiscal 2026 EBITDA and free cash flow guidance, while acknowledging a severe lack of "operational discipline."

On this devastating news, the price of Coty common stock collapsed, falling roughly 22% from a closing price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, erasing hundreds of millions of dollars in shareholder value.

What This Means for Investors

The filing of the expanded complaint does not alter the upcoming May 22, 2026 deadline to seek appointment as Lead Plaintiff.

If you invested in Coty during the Expanded Class Period and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Coty case and the firm's investigation, read more »

"We're investigating the extended period of alleged misrepresentations which is alleged to have harmed investors who bought into Coty's growth narrative as early as spring of last year. " said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the pending claims.

Whistleblowers: Persons with non-public information regarding Coty should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

# # #

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298302

Source: Hagens Berman Sobol Shapiro LLP

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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Coty To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Coty between November 5, 2025 and February 4, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

, /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coty Inc. ("Coty" or the "Company") (NYSE: COTY) and reminds investors of the May 22, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

James (Josh) Wilson, Faruqi & Faruqi Senior Partner (PRNewsfoto/Faruqi & Faruqi, LLP) As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty's securities at artificially inflated prices.

After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company's near-term outlook downward.  Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of "operational discipline" in both Prestige and Consumer Beauty segments.

Investors and analysts reacted immediately to Coty's revelation. The price of Coty's common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding Coty's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Coty class action, go to www.faruqilaw.com/COTY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

SOURCE Faruqi & Faruqi, LLP

, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Coty Inc. ("Coty" or the "Company") (NYSE: COTY) and certain of its former officers. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 26-cv-04034, is on behalf of all investors who purchased or otherwise acquired Coty common stock between May 7, 2025, to February 4, 2026, inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws (the "Class").

If you are an investor who purchased or otherwise acquired Coty securities during the Class Period, you have until May 22, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Coty, together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: Prestige and Consumer Beauty. The Company provides fragrance, color cosmetics, and skin and body care products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops.

Defendants provided investors with material information concerning Coty's growth potential for the fiscal year 2026. Defendants' statements included, among other things, confidence in the Company's ability to drive growth and profitability in the fiscal year 2026 by improving fragrance sales, building a strong innovation pipeline and making operational improvements.

Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Coty's slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty's securities at artificially inflated prices.

After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter of fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company's near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of "operational discipline" in both Prestige and Consumer Beauty segments.

Investors and analysts reacted immediately to Coty's revelation. The price of Coty's common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

-

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Coty To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Coty between November 5, 2025 and February 4, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coty Inc. (“Coty” or the “Company”) (NYSE: COTY) and reminds investors of the May 22, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

The complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements

Share Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Coty’s securities at artificially inflated prices.

After the market closed on February 4 and 5, 2026, Coty announced its financial results for the second quarter fiscal year 2026, unveiling disappointing earnings results with worsening performance in the Consumer Beauty segment. The Company also noted the recent transition of its Chief Executive Officer in conjunction with the below-expectation results. Coty further withdrew its fiscal year 2026 guidance for EBITDA and revised the Company’s near-term outlook downward. Coty attributed its results and lowered guidance to a combination of macroeconomic factors including rising costs and uncertain consumer demand and lack of “operational discipline” in both Prestige and Consumer Beauty segments.

Investors and analysts reacted immediately to Coty’s revelation. The price of Coty’s common stock declined from a closing market price of $3.43 per share on February 4, 2026, to $2.66 per share on February 6, 2026, a decline of about 22%.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Coty’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Coty class action, go to www.faruqilaw.com/COTY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

More News From Faruqi & Faruqi, LLP

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NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Coty Inc. (NYSE: COTY) between November 5, 2025 and February 4, 2026, inclusive (the “Class Period”), of the important May 22, 2026 lead plaintiff deadline.

SO WHAT: If you purchased Coty common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Coty class action, go to https://rosenlegal.com/submit-form/?case_id=47083 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 22, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Coty class action, go to https://rosenlegal.com/submit-form/?case_id=47083 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

Contact Information:

        Laurence Rosen, Esq.
        Phillip Kim, Esq.
        The Rosen Law Firm, P.A.
        275 Madison Avenue, 40th Floor
        New York, NY 10016
        Tel: (212) 686-1060
        Toll Free: (866) 767-3653
        Fax: (212) 202-3827
        [email protected]
        www.rosenlegal.com

New York, New York--(Newsfile Corp. - May 22, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Coty Inc. (NYSE: COTY) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Coty securities between November 5, 2025 and February 4, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/COTY.

Coty Case Details

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:

Defendants issued overwhelmingly positive statements regarding Coty's growth and profitability prospects for fiscal year 2026; Coty's growth in the beauty market was slowing, including underperformance in its Consumer Beauty segment; The Company's margins were being pressured by increased marketing expenditures; Growth in Coty's Prestige fragrance segment was decelerating; and As a result, Defendants' statements about Coty's business, operations, and prospects were materially false and misleading at all relevant times.What's Next for Coty Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/COTY, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Coty you have until May 22, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Coty Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Coty Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

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Rosen Law Firm, a global investor rights law firm, reminds investors about a class action lawsuit on behalf of purchasers of common stock of Coty Inc. (NYSE: COTY) between November 5, 2025 and February 4, 2026. Coty describes itself as a company that “together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide.”

For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653.

The Allegations: Rosen Law Firm is Investigating the Allegations that Coty Inc. (NYSE: COTY) Misled Investors Regarding its Business Operations.

According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Coty’s slowing growth in the beauty market, notably, the Consumer Beauty market was underperforming, margins were compressed by increased marketing investments and there was slowing growth in its Prestige fragrance segment. When the true details entered the market, the lawsuit claims that investors suffered damages.

What Now: You may be eligible to participate in the class action against Coty Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by May 22, 2026. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders.

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It has been about a month since the last earnings report for Coty (COTY - Free Report) . Shares have lost about 28.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Coty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Coty Loss Widens in Q3, Consumer Beauty Revenues Decline 4%Coty posted weaker-than-expected third-quarter fiscal 2026 results. The company reported an adjusted loss of three cents per share against the Zacks Consensus Estimate of breakeven earnings. Results also compared unfavorably with adjusted earnings of a penny in the year-ago quarter.

Net revenues were $1,281.6 million, down 1% year over year, and slightly below the Zacks Consensus Estimate of $1,285 million. The metric included a 6% gain from foreign exchange. On a like-for-like (LFL) basis, revenues declined 7%, reflecting disruptions tied to the Middle East conflict.

Gross margin was 61.8%, down 230 basis points (bps) year over year, as supply-chain cost under-absorption from lower sales, higher excess and obsolescence in Consumer Beauty, and tariff-related freight costs weighed on results. Adjusted gross margin was 61.8%, down 250 bps.

Adjusted operating income plunged 51% to $72.4 million on soft sales and gross profit, with the adjusted operating margin contracting 580 basis points to 5.6%. Adjusted EBITDA declined 38% to $127 million, with adjusted EBITDA margin down 580 basis points to 9.9%.

Coty’s Segment-Wise PerformancePrestige revenues were $830.9 million, essentially flat on a reported basis year over year, but declined 5% on a LFL basis, reflecting slower category growth. The quarter included an anticipated 2% headwind from Middle East-related conflict. The company’s Prestige strategy has been anchored by major brands like Burberry, Hugo Boss, Calvin Klein, Marc Jacobs, Chloe and Kylie Cosmetics. Year to date through the fiscal year, major launches continue to perform well, including BOSS Bottled Beyond and Cosmic by Kylie Jenner Intense. The adjusted operating margin in the segment decreased 420 basis points to 14.9%.

Consumer Beauty revenues came in at $450.7 million, down 4% year over year on a reported basis and down 10% on a LFL basis, including a 1%-headwind from the conflict in the Middle East. The segment recorded an adjusted operating loss of $51.3 million, wider than a loss of $10.9 million in the year-ago quarter. However, the company is seeing encouraging signs in Consumer Beauty, with brands like CoverGirl and Sally Hansen gradually closing the gap with the broader category in terms of retail sales, while continuing to outperform the category when measured by unit sales.

COTY’s Regional HighlightsAmericas: By geography, the Americas posted revenues of $510.4 million, down 4% year over year on a reported basis and down 6% on a LFL basis, primarily reflecting lower sales in the US and Canada. This was somewhat offset by increased sales in the Americas Travel Retail channel.

EMEA: Revenues were $597.6 million, down 2% reported and 11% on a LFL basis, due to weaker performance in the Middle East, France, and Central and Eastern Europe.

Asia Pacific: The segment was the standout, with revenues rising 9% to $173.6 million on a reported basis and 5% on a LFL basis, supported by higher sales in China, Korea, Japan and the Asia Travel Retail channel.

COTY’s Strategic & Financial UpdatesThe company’s curated strategic framework, which was unveiled last quarter, focuses on setting clearer priorities, directing investments more selectively, enhancing execution capabilities and strengthening support for its core businesses to drive focused growth. COTY is integrating this framework into its fiscal 2027 plans across both divisions, with a focus on streamlining and efficiency. This includes lowering the number of smaller launches, reducing marketing asset production costs, partly through broader use of AI across owned brands, while increasing spending on consumer engagement. It is working to simplify its operating model, aimed at driving stronger sell-out performance and expanding market share in time.

The company ended the quarter with financial net debt of $2.96 billion and a leverage ratio (net debt to adjusted EBITDA) of 3.4. Free cash flow was $275.6 million at the end of the nine months ending March 31, 2026. Cash and cash equivalents were $257.1 million at quarter end.

Coty’s OutlookConsumer demand for beauty stays resilient, with strength in fragrances and cosmetics. While the Middle East conflict weighs on sales trends, consumer demand in developed markets has been broadly consistent with recent periods. Nevertheless, Coty’s curated strategic framework, focusing on core brands and markets, reducing portfolio complexity and realizing savings opportunities to aid investments in consumer engagement and protect profitability, appears encouraging.

For the fourth quarter of fiscal 2026, Coty expects LFL revenues to decrease by a mid-single-digit percentage, indicating a moderate sequential improvement from the third-quarter sales trends. This reflects a benefit from an easy year-over-year comparison base, mainly offset by headwinds in the Middle East business, which is likely to impact Q4 sales by an expected 2-3%. On a reported basis, management predicts foreign exchange to have a neutral effect in the impending quarter.

Adjusted gross margins are likely to decline by roughly 100-200 bps year over year on operating deleverage from weaker shipments, tariff impacts, and elevated, though sequentially lower, excess and obsolescence, somewhat offset by productivity and procurement efforts. For Q4, Coty envisions adjusted EBITDA of $85-$95 million and adjusted EPS, excluding the equity swap, of breakeven to a loss of two cents per share.

For fiscal 2026, Coty anticipates adjusted EBITDA of approximately $838-$848 million, with adjusted EPS, excluding the equity swap, of 33-35 cents. Management forecasts free cash flow in the fourth quarter to be neutral to moderately positive, representing the seasonality of the business and working capital management.

For the Prestige division, the company continues to drive growth through a series of brand-building initiatives and product innovations across its fragrance portfolio. It is expanding the global reach of the Fall 2025 BOSS Bottled Beyond launch, with the BOSS Bottled franchise benefiting from share fiscal year-to-date across key markets, alongside U.S. distribution expansion and share gains for Hugo Boss in the US. A new Burberry Her campaign featuring Olivia Dean is reinforcing the strength of the franchise.

Looking ahead, the company is set to launch Calvin Klein Euphoria Elixirs in Spring 2026, a global female fragrance launch, with encouraging initial indicators in Europe and Travel Retail Americas. It is also elevating its Chloé Atelier des Fleurs line with the introduction of Les Essences Méditerranéennes, which is gaining strong traction in China. In addition, Marc Jacobs Beauty is set to debut in June 2026. Key launches are expected for fiscal 2027 across its core brands, including the introduction of a new Swarovski fragrance expected in the next year.

Consumer Beauty division is seeing progress with CoverGirl and Sally Hansen closing the gap with their respective categories in terms of retail sales. Both brands continue to outperform on a volume basis on robust performance from recent Spring product innovations. It continues to expand and strengthen its global presence for adidas, driven by the adidas Vibes scenting collection.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 51.84% due to these changes.

VGM ScoresAt this time, Coty has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Coty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Coty Inc. (COTY) Presents at 16th Annual East Coast IDEAS Conference Transcript

Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Sirius XM (SIRI - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Sirius XM has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold) right now. This means that SIRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SIRI currently has a forward P/E ratio of 8.63, while NFLX has a forward P/E of 25.88. We also note that SIRI has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NFLX currently has a PEG ratio of 1.18.

Another notable valuation metric for SIRI is its P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 12.46.

These metrics, and several others, help SIRI earn a Value grade of A, while NFLX has been given a Value grade of D.

SIRI stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIRI is the superior value option right now.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Sirius XM (SIRI - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Sirius XM currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if SIRI is a promising momentum pick, let's examine some Momentum Style elements to see if this satellite radio company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For SIRI, shares are up 4.43% over the past week while the Zacks Broadcast Radio and Television industry is down 2.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.24% compares favorably with the industry's 1.98% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Sirius XM have increased 19.2% over the past quarter, and have gained 38.15% in the last year. In comparison, the S&P 500 has only moved 4.15% and 30.86%, respectively.

Investors should also take note of SIRI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now SIRI is averaging 6,057,771 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SIRI.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SIRI's consensus estimate, increasing from $3.09 to $3.10 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that SIRI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Sirius XM on your short list.

Key Takeaways SIRI beat Q1 estimates with EPS of 72 cents and revenues rising 1.1% YoY.Ad revenues climbed 3.3%, driving growth alongside modest gains in subscriber revenues.Adjusted EBITDA rose 6% as cost cuts boosted margins and free cash flow more than tripled. Sirius XM Holdings (SIRI - Free Report) stock edged up 1% after its April 30, 2026, earnings announcement, modestly outpacing the 1% drop seen across the Zacks Broadcast Radio and Television industry.

The company reported first-quarter 2026 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 70 cents by 2.86%. It reported earnings of 59 cents per share in the year-ago quarter.

The company reported total revenues of $2.09 billion, up 1.1% from $2.07 billion in the year-ago quarter and beat the Zacks Consensus Estimate by 0.89%.

Subscriber revenues (77% of total revenues) increased 0.62% from the year-ago quarter’s reported figure to $1.61 billion. The figure surpassed the Zacks Consensus Estimate by 0.39%.

Advertisement revenues (19.5% of total revenues) increased 3.3% year over year to $407 million, surpassing the Zacks Consensus Estimate by 2.71%.

Equipment revenues (2.0% of total revenues) were flat year over year at $41 million, missing the Zacks Consensus Estimate by 3.59%.

Other revenues (1.5% of total revenues) were flat year over year at $31 million, surpassing the Zacks Consensus Estimate by 4.58%.

Sirius XM Standalone Segment’s DetailsSirius XM’s Standalone segment revenues (76.0% of total revenues) were $1.59 billion, up 1% year over year, driven by higher subscriber revenues from pricing actions.

 Subscriber revenues increased 0.9% year over year to $1.48 billion, reflecting the impact of recent pricing actions, partially offset by a slightly lower average subscriber base.

Total subscriber base declined 0.3% year over year to 32.78 million.

Advertising revenues were $35 million, down 10% year over year, primarily due to softness in news channels.

Self-pay subscribers decreased 0.3% year over year to 31.23 million. Self-pay net subscriber loss in the reported quarter was 111K compared with a loss of 303K in the year-ago period. Average revenue per user amounted to $14.99, up from $14.86 year over year. Self-pay monthly churn improved to 1.5% from 1.6% in the year-ago period.

Net subscriber loss in the reported quarter was 148K compared with a net loss of 362K in the year-ago period.

Pandora & Off-Platform DetailsThe Pandora and Off-Platform segment continued to shoulder most of the company’s advertising mix. Segment revenues increased 3% year over year to $501 million, with advertising revenues rising 5% to $372 million, partially offset by a 2% decline in subscriber revenues to $129 million amid a smaller subscriber base.

    Self-pay subscribers of Pandora ended the quarter at 5.6 million. Ad-supported listener hours were 2.22 billion in the first quarter, down 6% year over year. Advertising revenue per thousand listener hours decreased 4% year over year to $84.11.

SIRI's Q1 Operating DetailsIn the first quarter, total operating expenses decreased 3% year over year to $1.64 billion, primarily backed by impairment, restructuring and other costs of $6 million compared with $48 million in the prior-year period.

Profitability improved on a combination of modest top-line growth and cost control. Adjusted EBITDA increased 6% year over year to $666 million, and adjusted EBITDA margin expanded 140 basis points to 32.0%, reflecting lower customer service, product and technology, and general and administrative expenses.

Management also reiterated its 2026 focus on efficiency, noting $45 million of progress toward a targeted $100 million in incremental gross cost savings for the year. The cost program included $27 million in operating expense run-rate savings and $18 million in capital expenditure savings.

Balance Sheet & Cash Flow of SIRIAs of March 31, 2026, cash and cash equivalents were $75 million compared with $94 million as of Dec. 31, 2025, according to the company's consolidated balance sheet.

Long-term debt as of March 31, 2026, was $9.69 billion compared with $8.65 billion as of Dec. 31, 2025.

During the quarter, Sirius XM completed a $1.25 billion refinancing, retired all 2026 notes and redeemed $250 million of 2027 notes, while returning $113 million to its shareholders through $91 million in dividends and $22 million in share repurchases.

For the first quarter, cash flow from operations was $271 million compared with $242 million in the year-ago quarter.

Free cash flow totaled $171 million, more than tripling from $56 million in the prior-year period, driven by higher adjusted EBITDA and lower capital expenditures.

SIRI Reaffirms 2026 GuidanceSIRI reaffirmed its full-year 2026 outlook, projecting revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.

The company also reiterated its longer-term target of $1.5 billion in free cash flow in 2027, reflecting a continued focus on operational efficiency and cash flow conversion.

SIRI’s Zacks Rank & Other Stocks to ConsiderSIRI currently carries a Zacks Rank #2 (Buy).

Alto Ingredients (ALTO - Free Report) , Central Garden & Pet (CENT - Free Report) and Fox (FOX - Free Report) are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector. While Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy), Central Garden & Pet and Fox carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alto Ingredients shares have surged 88.6% year to date. ALTO is set to report its first-quarter 2026 results on May 6.

Central Garden & Pet shares have gained 14.3% year to date. CENT is set to report its second-quarter fiscal 2026 results on May 6.

Fox shares have declined 12.3% year to date. FOX is set to report its third-quarter fiscal 2026 results on May 11.

Warren Buffett got serious about Sirius XM (SIRI 0.25%) in his final few quarters as CEO of Berkshire Hathaway. Buffett's iconic conglomerate had been adding to its stake in Sirius XM over the past two years, amassing a stake of better than 37% in the satellite radio monopoly before the generational investor stepped down from the helm.

We may never know if it was Buffett or one of his many skilled executives who led the charge to build out Berkshire's position. We do know that Sirius XM stock underperformed the market during Buffett's time at Berkshire. However, it's been a different story this year. Sirius XM is beating the market with a 33% gain so far in 2026.

Offering a healthy yield and in the early stages of turning things around, is Sirius XM a dividend stock that you should buy, too? Let's hit the road and crank up the music. This could be Berkshire's biggest gainer in 2026.

Image source: Getty Images.

The volume knob is finally starting to move Sirius XM may not look like much from the vantage point of the rearview mirror. It has posted modest revenue declines for three consecutive years. Its subscriber count peaked at nearly 35 million more than six years ago. The media stock may seem to be fading out like many of the musical tracks on its airwaves, but this song still has a few more verses to belt out.

For starters, Sirius XM has now posted back-to-back quarters of increasing revenue. It was just a 0.2% year-over-year uptick in the fourth quarter of last year and a 1.1% step up in last week's report, but there's a corner that is slowly but definitely being turned.

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Coming around the bend It's not just the fundamentals turning the corner. After five straight years of stock declines, Sirius XM is crushing the market in 2026. The stock's yield -- a hearty 4.1% even after the shares rising 35% off their November lows -- is attracting income investors. Routinely clocking in with 10-figure annual free cash flow ($1.35 billion projected by Sirius XM for this year), it's good for the money.

Sirius XM reiterated its 2026 guidance in last week's first-quarter report. This is great to see, but the risks remain. Sirius XM is directly in the path of two headwinds: rising gas prices and the impact they may have on diminishing consumer spending.

More pain at the pump in the coming months can limit the time folks spend driving. This would lower the perceived value of a premium radio service consumed primarily in automobiles. The other dagger is that with less disposable income after paying up for gas, a satellite radio subscription could be next on the chopping block for cost-cutting consumers.

There's also a bullish scenario: The war in Iran subsides, inflationary pressures recede, and car sales surge, along with Sirius XM's recent acceleration in revenue growth. Even if that scenario doesn't play out, the stock is still cheap for a business that appears to be coming around. You can buy Sirius XM for 8.6 times this year's earnings and 7.9 times next year's target.

© Dimitrios Kambouris / Getty Images Entertainment via Getty Images

Warren Buffett built Berkshire Hathaway by paying reasonable prices for durable cash flows, and three of his current bets still trade below $30 a share. With Greg Abel sitting on a record cash pile, the sub-$30 aisle is where value hunters are scanning for the kind of brand-heavy, cash-generative franchises Omaha tends to favor when sentiment sours.

Here are five stocks under $30 that fit the Buffett template: three Berkshire already owns, plus two Abel could plausibly add to the book.

Kraft Heinz (NASDAQ: KHC) Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) owns Heinz, Philadelphia, Lunchables, and Primal Kitchen. Shares recently traded at $23.96, paying a 6.76% dividend yield at a forward multiple near 12. Q1 adjusted EPS hit $0.58 against a $0.5027 consensus, the fourth consecutive beat, while free cash flow jumped 58.9% to $766M. CEO Steve Cahillane’s $600M reinvestment plan anchors the turnaround case. The risk: organic net sales are guided down 1.5% to 3.5% on SNAP and private-label pressure. With analyst targets clustered near $23.87, the value here lives in the dividend.

Sirius XM (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI) operates satellite radio and Pandora and just locked in an exclusive U.S. audio ad partnership covering YouTube’s roughly 255 million monthly listeners. Shares sit near $27.10, up 37.2% year to date, on a trailing P/E of 11 and forward P/E of 9. The dividend yields 4.04% at $0.27 quarterly. Q1 churn hit a record-low 1.5% and podcast revenue grew 37%, with full-year free cash flow guided to $1.35B. The bear note: self-pay subscribers are still shrinking. Wall Street targets average $28.08, leaving the cash return as the main draw.

Liberty Latin America (NASDAQ: LILA) Liberty Latin America (NASDAQ:LILA) runs broadband and mobile networks across the Caribbean and Latin America under Flow, Liberty, and Más Móvil. Shares recently sat at $7.63, up 63.38% over the past year. Q1 operating income rose 13%, the company added 50,200 postpaid subscribers, and CEO Balan Nair announced plans to distribute $500M in 9% preferred stock. Berkshire still holds the position. The risk is real: net leverage sits at 4.5x and Hurricane Melissa weighed on Caribbean revenue. Analyst targets at $11.90 imply meaningful upside if recovery holds.

Nu Holdings (NYSE: NU) Nu Holdings (NYSE:NU), Latin America’s largest digital bank, sits outside Berkshire’s current portfolio yet matches the profitable, scale-driven financial profile Abel has flagged interest in. It’s also formerly a Berkshire Hathaway holding. Shares trade near $13.80 at a trailing P/E of 23. Full-year revenue grew 42.06% to $15.77B, net income climbed 45.61% to $2.87B, and Q4 return on equity hit 33%. Nubank also secured conditional OCC approval for a U.S. national bank. Risks include Brazilian macro exposure and $4.20B in expected credit losses. Consensus target sits at $19.87, well above the current quote.

Pfizer (NYSE: PFE) Pfizer (NYSE:PFE) is another non-Berkshire name that fits the Buffett-style screen Abel may inherit. Shares recently traded at $25.68, up 21.96% over the past year, pairing a 6.6% yield with a forward P/E of 9. The non-COVID portfolio grew 9% operationally in Q4, with Vyndaqel, Eliquis, and Abrysvo all posting double-digit gains. Q4 adjusted EPS came in at $0.66 versus a $0.57 consensus. Risks include a $1.5B loss-of-exclusivity headwind plus Most-Favored-Nation pricing uncertainty. Consensus target stands at $29.11.

A low share price by itself is never a thesis. Each of these names carries a specific risk that could undo the cheap headline multiple, from food-volume erosion to Brazilian macro to drug-pricing reform. Treat this list as a starting point for your own diligence, not a substitute for it.

Sirius XM Holdings Inc. (SIRI) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

With major indices flirting with historically stretched valuations and inflation still nibbling at household budgets, dividend-paying stocks under $40 are getting a fresh look from retail investors who want income without overpaying for it. A sub-$40 entry point can be the difference between a position that earns its keep and one that locks up capital. While the broader market grapples with historically stretched valuations and creeping inflation, satellite radio giant Sirius XM Holdings presents a masterclass in defensive, highly predictable cash generation.

With that in mind, here is one stock trading under $40 that pairs a legally protected monopoly with a yield north of 4% and a clear path to higher free cash flow.

Sirius XM Holdings (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI | SIRI Price Prediction) is the sole satellite radio provider in the United States, pairing subscription audio with the Pandora streaming and podcast business. The FCC-licensed satellite broadcast license is the kind of regulatory moat that public-market investors rarely get to buy at a single-digit forward multiple.

Shares closed at $29.87 on May 28, 2026, comfortably inside a retail price band yet up 52.75% year to date and 39.82% over the past year. For a retail investor, that means the YouTube partnership rerating is underway, yet the stock still trades below the $34 Guggenheim target and well under Rosenblatt’s $45 price target.

The fundamentals back up the setup. Sirius XM trades at a trailing PE of 13 and a forward PE of 10, with a PEG ratio of 0.657 and a dividend yield of 3.64% on the trailing basis (the run-rate yield sits above 4% against the recent filing price). The $0.27 quarterly dividend annualizes to $1.08 per share, a payout that consumed only 27% of free cash flow last cycle. Analyst consensus skews to a $28 average target, but the more aggressive bull cases reach $45.

The bull case is straightforward. Q1 2026 delivered EPS of $0.72, net income up 20% YoY to $245 million, operating income up 24.38%, and free cash flow that tripled to $171 million. Self-pay churn fell to 1.5%, the lowest first-quarter reading on record. Management reaffirmed 2026 guidance of roughly $8.50 billion in revenue, $2.60 billion in adjusted EBITDA, and $1.35 billion in free cash flow, with a 2027 free cash flow target of $1.5 billion. CEO Jennifer Witz said the company “significantly enhanced our advertising capabilities through our landmark partnership with YouTube”, a deal that gives SiriusXM Media exclusive U.S. ad representation for YouTube’s audio inventory reaching 255 million monthly listeners starting fall 2026. Podcast revenue grew 37% YoY in the quarter, and Berkshire Hathaway’s stake adds a credibility stamp few sub-$40 dividend names can match.

The key risk that cuts against the thesis: the subscriber base is still shrinking. Q1 2026 saw total net subscriber losses of 148,000, Pandora monthly active users fell 5% YoY to 40.1 million, and ad-supported listener hours declined 6% YoY. Net leverage at 3.6x is elevated, and reported early-stage merger talks with iHeartMedia introduce execution risk that could complicate the deleveraging path. Yet the trend lines on churn, ARPU, and free cash flow point the right way.

For patient investors hunting a regulator-protected cash compounder under $40, Sirius XM fits the brief.

The Bottom Line A low share price alone is never a reason to buy or avoid a stock, and Sirius XM still carries a debt load, ad-market sensitivity, and a slow-bleeding subscriber count that demand scrutiny. Use this as a starting point for your own research, weigh the YouTube catalyst and the dividend coverage against the leverage and M&A overhang, and decide whether the moat justifies the position size in your portfolio.

, /PRNewswire/ -- Sirius XM Holdings Inc. (NASD: SIRI) will replace Masimo Corp. (NASD: MASI) in the S&P MidCap 400 effective prior to the opening of trading on Thursday, June 11. S&P 500 & 100 constituent Danaher Corp. (NYSE: DHR) is acquiring Masimo in a deal expected to be completed soon pending final conditions.

Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective
Date 

Index
Name 

Action 

Company Name 

Ticker 

GICS Sector 

 June 11, 2026  

S&P MidCap 400 

Addition 

Sirius XM Holdings

SIRI 

Communication Services 

 June 11, 2026  

S&P MidCap 400 

Deletion 

Masimo

MASI 

Health Care 

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