Martin Roper, the Chief Executive Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently executed a series of stock sales amounting to approximately $1.44 million. The transactions were conducted over two days, December 9 and 10, 2024, as part of a pre-established trading plan. The sales come as Vita Coco, now valued at $2.06 billion, trades near its 52-week high of $37.20, having delivered an impressive 41.72% return year-to-date.
Roper sold a total of 40,000 shares of Vita Coco's common stock in multiple transactions. The shares were sold at weighted average prices ranging from $35.929 to $36.324 per share. These sales were carried out under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at set times to avoid potential accusations of insider trading. According to InvestingPro, the company maintains excellent financial health with a "GREAT" overall score, and analysis suggests the stock is currently trading at Fair Value.
Following these transactions, Roper continues to hold a significant number of shares directly and indirectly, including shares held in family trusts. The sales reflect a strategic financial decision by Roper, who remains a key figure in the company's leadership. InvestingPro subscribers can access 12 additional ProTips and a comprehensive analysis of Vita Coco's financial metrics through the Pro Research Report.
In other recent news, The Vita Coco Co. Inc has reported mixed outcomes in its 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. Notably, the Vita Coco Coconut Water brand demonstrated resilience with an 8% growth in the U.S. and a 19% increase in the UK. The decline in sales was partly offset by this growth. Vita Coco'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's stock, recently raising its price target to $38.00 from $30.00. The firm attributes the company's slower sales growth to temporary inventory constraints, primarily due to challenges in ocean freight availability and transit times. However, these issues have been resolved, which is supported by recent Nielsen data. Looking ahead to 2025, BofA Securities forecasts a 13.5% increase in sales for Vita Coco Coconut Water in the Americas. These are among the recent developments for the company.
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