In a recent move, Julie Garcia Ruehl, a director at Zevia PBC (NYSE:ZVIA), increased her stake in the company through the purchase of shares worth a total of $15,592. The transactions were carried out over two consecutive days, with Ruehl acquiring shares at prices ranging from $1.0304 to $1.04.
On September 5, 2024, Ruehl purchased 750 shares of Zevia's Class A Common Stock at an average weighted price of $1.0304 per share. Following this transaction, her total ownership in the company amounted to 212,996 shares. The next day, Ruehl continued to invest in the company by buying an additional 14,250 shares, this time at a slightly higher price of $1.04 per share. This brought her total holdings to 227,246 shares, which includes 125,121 restricted stock units (RSUs) under Zevia PBC's 2021 Equity Incentive Plan.
These RSUs are part of an incentive plan where each unit represents the right to receive one share of Class A Common Stock of Zevia. Of these RSUs, 6,666 are fully vested and set to be settled on January 17, 2025, while the remaining 118,455 units are set to vest at the earlier of June 12, 2025, or the date of Zevia's 2025 annual meeting of stockholders, with settlement occurring within 30 days of the vesting date.
The transactions were reported in a Form 4 filing with the Securities and Exchange Commission (SEC), signed by Lorna R. Simms, Attorney-in-Fact for Julie Garcia Ruehl, on September 9, 2024. Investors often monitor these filings to gain insight into the actions of a company's insiders, as their trading activities can be indicative of their confidence in the company's future performance.
Zevia PBC, known for its brand of zero-calorie beverages, is based in Encino, California, and operates within the bottled and canned soft drinks and carbonated waters industry.
In other recent news, Zevia PBC reported its Q2 2024 financial results, revealing a net loss of $7 million despite witnessing growth in retail sales, especially in the food channel. The company's efforts have led to the removal of 2,900 metric tons of sugar from consumers' diets, demonstrating its commitment to healthier options. Despite challenges in club distribution and competitive pressures, Zevia PBC launched a direct-store delivery initiative and increased prices on soda multipacks.
Zevia PBC plans to achieve annual cost savings of $12 million through productivity initiatives, focusing on automation, consolidation, and technology solutions. The company expects net sales for Q3 to range between $37 million and $40 million, with an aim to finish the year at the lower end of its net sales guidance range. Despite decreased gross margins due to inventory charges and increased investments in visuals and promotions, Zevia PBC remains optimistic about future growth.
The company is also focused on regaining distribution in certain club regions and expects new distribution gains. Zevia PBC is investing in marketing campaigns and product innovation to scale efforts and drive distribution. These are the recent developments within the company.
InvestingPro Insights
In light of the recent insider transactions at Zevia PBC, it's important to consider the company's financial health and market performance to understand the potential implications of director Julie Garcia Ruehl's increased stake. Zevia, with a market capitalization of $72.71 million, is navigating through challenging financial waters, as indicated by a negative P/E ratio of -1.98, reflecting the company's lack of profitability over the last twelve months. Additionally, the company's revenue has seen a slight decline, with a -3.05% change over the last twelve months as of Q2 2024.
However, there are some positive signals from the company's balance sheet. An InvestingPro Tip highlights that Zevia holds more cash than debt, which is a reassuring sign of financial stability. Moreover, the company's liquid assets surpass its short-term obligations, suggesting a solid financial position to meet immediate liabilities. This could be a factor in Ruehl's decision to increase her stake, as it may indicate a belief in the company's ability to weather short-term financial challenges.
Investors should note that the stock has experienced high price volatility, which aligns with the significant drop in its price over the last year. Despite this, there has been a strong return over the last month, with a 17.19% price total return, which may have presented a buying opportunity for Ruehl. For those looking for more detailed analysis, there are additional InvestingPro Tips available that delve into other aspects of Zevia's performance and valuation, including analysts' earnings revisions and the stock's historical price movements.
For readers interested in a deeper dive into Zevia's investment potential, more InvestingPro Tips are accessible at https://www.investing.com/pro/ZVIA, providing a comprehensive look at the company's financials and market standing.
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