In a recent transaction, John Zupo, a director at Vita Coco Company, Inc. (NASDAQ:COCO), sold 5,017 shares of the company's common stock, netting a total of $138,569. The shares were sold at a weighted average price of $27.62, with individual sales prices ranging from $27.57 to $27.68.
The transaction was reported in a Form 4 filing with the Securities and Exchange Commission, dated June 11, 2024. Following the sale, Zupo still owns a total of 8,247 shares of Vita Coco's common stock directly.
Vita Coco, known for its coconut water and other beverage products, is a company based in New York with a SIC classification in the Beverages sector. The company, incorporated in Delaware, has undergone several name changes, previously known as All Market Inc. and has been operating under its current name since August 2021.
In addition to the sale of common stock, the filing also disclosed that Zupo holds 38,675 non-qualified stock options, which are fully vested and currently exercisable, with an exercise price of $10.178 per share and an expiration date of December 16, 2029.
Investors and security holders of Vita Coco can request detailed information from Zupo regarding the specific prices at which the stock was sold within the reported range, as per the footnotes in the SEC filing.
This transaction provides current and potential investors with insight into the actions of Vita Coco's directors and may be considered in their investment decisions regarding the company's stock.
In other recent news, the Vita Coco Company reported a 2% year-over-year increase in net sales for the first quarter of 2024, with a substantial 31% surge in net sales driven by strong branded pricing and private label mix effects. The company also revealed a robust cash position of $123 million, no debt, and a net income increase to $14 million from $7 million in the prior year. Lower transportation costs and reduced promotional activity have contributed to healthy gross margins, prompting Vita Coco to raise its full-year guidance. The company now projects net sales between $500 and $510 million and adjusted EBITDA of $76 million to $82 million.
These developments are part of the company's recent positive performance, including a 20% increase in net sales in the international segment, led by Europe. The company also plans to invest in Europe for market share gains and maintain a healthy cash balance for potential mergers and acquisitions and share buybacks. However, despite the strong growth, the company has noted some volume softness in the Asian market and uncertainty surrounding future transportation costs.
In line with these developments, Vita Coco has been focusing on its strategic approach to private label pricing and its alignment with branded products. The company has also been exploring new supply deals in the Philippines and promoting coconut water as an alcohol mixer. Despite these positive strides, no specific details have been provided on supply expansion plans in Brazil.
InvestingPro Insights
In light of the recent stock sale by Vita Coco Company, Inc. (NASDAQ:COCO) director John Zupo, investors may be seeking additional data to inform their decisions. According to InvestingPro data, Vita Coco has a market capitalization of $1.57 billion and is trading at a P/E ratio of 29.21. The company's revenue for the last twelve months as of Q1 2024 stands at $495.55 million, with a notable gross profit margin of 39.2%. These figures underscore the company's financial health and its ability to generate income relative to its revenue.
Adding to the picture, InvestingPro Tips highlight that Vita Coco holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations. This suggests a strong liquidity position, which is a reassuring sign for investors considering the stock amidst the insider sale. Additionally, analysts predict that Vita Coco will be profitable this year, reinforcing the company's positive outlook.
For those looking to delve deeper, InvestingPro offers a comprehensive range of tips, with a total of 9 additional InvestingPro Tips available at https://www.investing.com/pro/COCO. These tips provide further insights that could be pivotal in making an informed decision about investing in Vita Coco. Moreover, readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment analysis with even more valuable information.
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