Charles van Es, the Chief Sales Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently executed a series of stock transactions involving the company's common stock. According to a filing with the Securities and Exchange Commission, van Es sold 9,675 shares, generating approximately $310,615. The sale price per share ranged from $32.00 to $32.40.
These transactions were conducted under a Rule 10b5-1 trading plan, which allows corporate insiders to set up a predetermined plan to sell company stock. Additionally, van Es exercised options to acquire 9,675 shares at a price of $10.178 per share, which were fully vested and currently exercisable.
Following these transactions, van Es holds 97,668 shares of Vita Coco's common stock.
In other recent news, Vita Coco Company has reported mixed financial results for its third quarter of 2024. Despite a 4% decrease in net sales to $133 million, primarily due to a 37% drop in private label sales, the company has raised its full-year outlook for net sales and adjusted EBITDA. However, it's noteworthy that Vita Coco's flagship Coconut Water saw an 8% growth, contributing to the brand's expansion in the U.S. and UK markets.
The company's net income for the quarter increased to $19 million, or $0.32 per diluted share, from $15 million, or $0.26 per diluted share, in the same period last year. This rise was aided by reduced SG&A costs and favorable FX derivatives. Interestingly, cash on hand rose to $157 million, up from $133 million at the end of 2023, with the company reporting no debt.
In terms of future expectations, the company has projected full-year net sales to be between $505 million to $515 million, with adjusted EBITDA expected to range from $80 million to $84 million. Despite concerns about high ocean freight costs affecting Q4 margins, Vita Coco plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity.
InvestingPro Insights
The recent stock transactions by Charles van Es, Vita Coco's Chief Sales Officer, come at a time when the company's stock is showing strong momentum. According to InvestingPro data, Vita Coco has seen impressive returns, with a 21.27% price increase over the past month and a 31.55% gain over the last three months. This performance aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, with the current price at 98% of that peak.
Despite the recent insider sale, Vita Coco's financial health appears robust. The company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, as highlighted by InvestingPro Tips. These factors suggest a strong financial position, which may provide reassurance to investors in light of the executive's stock sale.
From a valuation perspective, Vita Coco presents an interesting picture. While the stock is trading at a high P/E ratio of 31.95, an InvestingPro Tip notes that it's trading at a low P/E ratio relative to near-term earnings growth. This is supported by a PEG ratio of 0.58, indicating potential undervaluation when considering growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 15 additional tips for Vita Coco, providing a deeper understanding of the company's financial health and market position.
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