Martin Roper, the Chief Executive Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently sold shares of the company's common stock valued at approximately $1.48 million. The transactions, which occurred over two days, involved the sale of 35,000 shares at prices ranging from $36.512 to $37.315 per share. The sale comes as COCO trades near its 52-week high of $37.88, with the stock showing impressive momentum, having gained over 42% year-to-date.
The sales were conducted as part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for selling stocks. Following these transactions, Roper retains direct ownership of 357,152 shares. Additionally, shares are held indirectly through family trusts, with Chris, Peter, and Thomas Roper each holding shares under their respective family trusts. According to InvestingPro, the company maintains strong financial health with a "GREAT" overall score, holding more cash than debt and maintaining robust liquidity with a current ratio of 3.28.
These moves come as Roper continues to manage his holdings in Vita Coco, a leading beverage company known for its coconut water products, now valued at approximately $2.1 billion in market capitalization. The transactions were reported in a Form 4 filing with the Securities and Exchange Commission, detailing the sales and remaining shares owned by Roper. For deeper insights into COCO's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, mixed outcomes were reported in Vita Coco's Q3 2024 earnings call. Despite a 4% decrease in net sales to $133 million, primarily due to a 37% drop in private label sales, the company raised its full-year guidance for net sales and adjusted EBITDA. The Vita Coco Coconut Water brand demonstrated resilience with an 8% growth in the U.S. and a 19% increase in the UK. The company's net income for the quarter rose to $19 million, or $0.32 per diluted share, compared to $15 million, or $0.26 per diluted share, in the same period last year.
BofA Securities maintains a Neutral rating on Vita Coco stock and has increased its price target to $38.00, following the resolution of recent inventory issues. The firm forecasts a 13.5% increase in sales for Americas Vita Coco Coconut Water in 2025. Vita Coco plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity. These are among the recent developments for the company.
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