Martin Roper, Chief Executive Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently sold shares totaling approximately $757,776. The transactions, which occurred over two days, involved the sale of common stock at prices ranging from $35.053 to $35.264 per share.
On November 12, Roper sold 5,000 shares at a weighted average price of $35.264 and another 5,000 shares at $35.261. Additionally, 5,000 shares were sold at $35.262, and another 5,000 at $35.26, all executed through family trusts. The following day, he sold smaller amounts, including 300 shares at $35.053 and 398 shares at $35.08.
Following these transactions, Roper retains a significant holding in the company, with shares held directly and through various family trusts. These sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks.
In other recent news, The Vita Coco Company reported a mixed bag of financial results in its Q3 2024 earnings call. Despite a 4% decrease in net sales to $133 million, largely due to a 37% drop in private label sales, the company has raised its full-year net sales and adjusted EBITDA guidance. This optimism stems from an 8% growth in its flagship product, Vita Coco Coconut Water, particularly in the U.S. and UK markets. Net income for the quarter rose to $19 million, up from $15 million in the same period last year. The company also reported an increase in cash on hand to $157 million, up from $133 million at the end of 2023, with no debt reported. Despite concerns over high ocean freight costs impacting Q4 margins, Vita Coco remains confident in its strategic approach and long-term growth potential. As part of its recent developments, the company plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity.
InvestingPro Insights
As Martin Roper, CEO of Vita Coco Company, Inc. (NASDAQ:COCO), executes his planned stock sales, investors might be curious about the company's current financial position and market performance. According to InvestingPro data, Vita Coco boasts a market capitalization of $1.93 billion, reflecting its significant presence in the beverage industry.
The company's P/E ratio stands at 34.59, which, when considered alongside an InvestingPro Tip noting that COCO is "Trading at a low P/E ratio relative to near-term earnings growth," suggests potential value for investors. This is further supported by a PEG ratio of 0.58 for the last twelve months as of Q3 2024, indicating that the stock might be undervalued relative to its earnings growth.
Vita Coco's financial health appears robust, with an InvestingPro Tip highlighting that the company "Holds more cash than debt on its balance sheet." This strong liquidity position is reinforced by another tip stating that "Liquid assets exceed short term obligations," which could provide the company with financial flexibility and stability.
The stock has shown impressive momentum, with InvestingPro data revealing a 32.17% price total return over the past three months and an 18.3% return in the last month. This aligns with the InvestingPro Tip indicating a "Strong return over the last three months."
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 11 more tips available for Vita Coco. These tips could provide valuable context for understanding the recent insider selling activity and the company's overall market position.
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