Jonathan Burth, the Chief Operating Officer of Vita Coco Company, Inc. (NASDAQ:COCO), has sold 2,244 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on September 30, 2024, resulted in a total sale value of over $67,335. The shares were sold at a weighted average price of $30.007, with individual sales prices ranging from $30.00 to $30.09 per share.
Burth's sale was conducted under a Rule 10b5-1 trading plan, a tool that allows insiders to establish pre-planned transactions at a time when they are not in possession of material, non-public information. This approach is intended to prevent any accusations of insider trading by setting up trades in advance, under predetermined conditions.
Following the sale, Burth still owns a significant number of Vita Coco shares, with his holdings totaling 124,605 shares of common stock. Vita Coco, known for its coconut water and other beverage products, has its headquarters in New York and operates under the industrial classification of beverages.
In addition to this sale, Burth holds various non-qualified stock options, which are rights to buy shares at a set price. These options have different vesting schedules and expiration dates, extending as far as 2034, and cover a range of exercise prices from $10.178 to $26.18.
Investors often monitor insider transactions for insights into management's perspective on the company's stock value. The sale of stock by a high-ranking executive like Burth may be of particular interest to current and potential shareholders, as it can signal executive confidence levels and provide a glimpse into the company's potential future performance.
Vita Coco has not made any public comments regarding the transactions reported in the SEC filing.
In other recent news, The Vita Coco Co. Inc has reported a 3% increase in net sales for the second quarter of 2024, reflecting a net income of $19 million and a gross profit increase of $8 million from the previous year. Despite supply chain disruptions due to shipping container shortages and potential strikes at 36 U.S. ports, the company maintains its full-year guidance, projecting net sales to range between $500 million and $510 million, with adjusted EBITDA anticipated to be between $76 million and $82 million. Piper Sandler, in its analysis, maintains a Neutral rating on Vita Coco shares, with a price target of $28.00, expressing concerns over potential revenue pressures due to these disruptions. The firm has revised its 2024 EBITDA estimate for Vita Coco from approximately $82 million to $77 million. Despite these challenges, Vita Coco continues to focus on expanding its customer base and driving innovation. These are recent developments, reflecting the company's resilience amidst supply chain adversities.
InvestingPro Insights
To complement the recent insider transaction by Vita Coco's COO Jonathan Burth, let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Vita Coco (NASDAQ:COCO) boasts a market capitalization of $1.61 billion, reflecting its position in the beverage industry. The company's P/E ratio stands at 28.75, based on the last twelve months as of Q2 2024, indicating how much investors are willing to pay for each dollar of earnings.
One of the InvestingPro Tips highlights that Vita Coco holds more cash than debt on its balance sheet. This strong liquidity position aligns with another tip stating that the company's liquid assets exceed short-term obligations. These factors suggest a solid financial foundation, which may provide context for executive decisions regarding stock transactions.
The company's revenue for the last twelve months as of Q2 2024 reached $500.02 million, with a revenue growth of 7.43% over the same period. This growth, coupled with a gross profit margin of 40.38%, demonstrates Vita Coco's ability to generate sales and maintain profitability in the competitive beverage market.
Interestingly, despite the recent insider sale, InvestingPro Tips indicate that Vita Coco is trading at a low P/E ratio relative to its near-term earnings growth. This suggests that the stock might still be undervalued compared to its growth prospects, which could be of interest to potential investors.
It's worth noting that Vita Coco does not pay a dividend to shareholders, as per InvestingPro Tips. This policy may indicate that the company is reinvesting profits to fuel further growth, which aligns with its strong revenue performance and market position.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what we've covered here. In fact, there are 5 more InvestingPro Tips available for Vita Coco, providing a deeper dive into the company's financial health and market position.
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