In a recent transaction, William H. Milmoe, a significant shareholder of Celsius Holdings , Inc. (NASDAQ:CELH), has sold a substantial amount of company stock, according to the latest Form 4 filing with the Securities and Exchange Commission. Over three days, Milmoe disposed of shares worth over $76 million at an average price of $59.6667 per share.
The transactions occurred on May 2, May 3, and May 6, with Milmoe selling exactly 214,287 shares of common stock on each day. These sales represent a significant change in Milmoe's holdings in the company, known for its line of fitness drinks and energy products.
The SEC filing indicates that the shares were delivered by CD Financial LLC upon the exercise of call options that were sold to unaffiliated third-party purchasers last year. These options gave the holder the right to buy, and the seller (in this case, CD Financial LLC, where Milmoe is the manager) the obligation to sell the shares at a predetermined price.
Following the sales, Milmoe still indirectly retains a substantial stake in Celsius Holdings through his role in CD Financial LLC and as a trustee of the Carl DeSantis Revocable Trust, which owns a majority beneficial interest in CD Financial LLC. The trust has shared voting and dispositive power over the shares of Celsius Holdings.
Investors often look at insider transactions as a signal of the executives' confidence in the company's future prospects. While the reasons for Milmoe's stock sale are not disclosed in the filing, the transaction has been duly reported in compliance with SEC regulations.
Celsius Holdings, Inc. has not made any official statements regarding the transactions, and it remains to be seen how this insider sale will impact investor sentiment towards the company.
InvestingPro Insights
Amidst the recent insider trading activity at Celsius Holdings, Inc. (NASDAQ:CELH), investors may gain additional insights by examining key metrics and predictions. According to InvestingPro data, Celsius boasts a robust market capitalization of $18.36 billion, reflecting the company's significant presence in the market. The company's P/E ratio stands at 99.94, indicating high investor expectations for future earnings, which is also supported by a substantial revenue growth of 101.65% over the last twelve months as of Q1 2023.
Delving into the InvestingPro Tips, it is noteworthy that analysts remain optimistic about Celsius Holdings, predicting sales growth in the current year, which is a positive sign for potential investors. Additionally, the company holds more cash than debt on its balance sheet, providing a degree of financial stability and flexibility. This is particularly relevant given the insider transactions, as it suggests that the company has a solid foundation regardless of individual shareholder actions.
For those interested in a deeper analysis, there are 17 additional InvestingPro Tips available for Celsius Holdings, which can be accessed through the platform's dedicated page for the company. For those looking to subscribe, a special offer is available: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's also important to highlight that the company's stock has experienced a high return over the last year, with a 118.6% price total return, which may interest long-term investors. The next earnings date is set for May 7, 2024, which will be a pivotal moment for shareholders to reassess the company's performance and future outlook.
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