Martin Roper, the Chief Executive Officer of Vita Coco Company, Inc. (NASDAQ:COCO), has sold a significant portion of his holdings in the company. According to the latest SEC filing, Roper sold a total of 40,000 shares over two days, November 20 and 21, at prices ranging from $35.397 to $36.647 per share. The transactions amounted to a total value of approximately $1.44 million.
The sales were executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks. Following these transactions, Roper retains direct ownership of 427,152 shares, with additional shares held indirectly through family trusts.
Vita Coco, known for its coconut water products, continues to be a major player in the beverage industry, and these transactions come as part of regular financial planning by its executives.
In other recent news, the Vita Coco Company reported mixed results in their Q3 2024 earnings call. The beverage producer saw a 4% decrease in net sales year-over-year, totaling $133 million, primarily attributed to a significant 37% drop in private label sales. However, the flagship Vita Coco Coconut Water displayed growth, with an 8% increase in the U.S. and a 19% rise in the UK. Despite the mixed performance, Vita Coco raised its full-year guidance for net sales and adjusted EBITDA, showing confidence in the brand's resilience.
Net income for the quarter also experienced growth, rising to $19 million, or $0.32 per diluted share, from $15 million, or $0.26 per diluted share, in the same period last year. The company's full-year net sales are projected to range between $505 million to $515 million, with adjusted EBITDA expected to be between $80 million to $84 million. Despite concerns over high ocean freight costs affecting Q4 margins, the company plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity. These are the recent developments reflecting the ongoing dynamics within the Vita Coco Company.
InvestingPro Insights
To provide additional context to Martin Roper's recent stock sales, let's examine some key financial metrics and insights for Vita Coco Company (NASDAQ:COCO) from InvestingPro.
As of the latest data, Vita Coco boasts a market capitalization of $2.08 billion, reflecting its significant presence in the beverage industry. The company's stock has shown impressive momentum, with a 22.67% price return over the past month and a substantial 47.23% return over the last three months. This recent performance aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, currently at 97.49% of that peak.
Despite the strong stock performance, Vita Coco's valuation metrics present an interesting picture. The company's P/E ratio stands at 34.59, which an InvestingPro Tip suggests is a high earnings multiple. However, this should be considered alongside another tip noting that the company is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.61 for the last twelve months as of Q3 2024.
Financially, Vita Coco appears to be on solid footing. The company reported revenue of $494.86 million for the last twelve months as of Q3 2024, with a gross profit margin of 39.87%. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, indicating financial stability.
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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