Jonathan Burth, Chief Operating Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently sold 400 shares of the company's common stock. The shares were sold at a price of $30.00 each, totaling $12,000. This transaction, which occurred on October 16, was executed under a Rule 10b5-1 trading plan, a pre-arranged stock trading plan often used by executives to sell stocks at predetermined times.
Following this sale, Burth retains ownership of 124,205 shares in the company. The sale is part of a broader trend of stock transactions by company insiders, which can offer insights into their perspectives on the company's financial health and future performance.
In addition to the stock sale, Burth holds several non-qualified stock options, which grant him the right to purchase additional shares in the future. These options have varying expiration dates and exercise prices, with some already fully vested and others vesting in installments over the coming years.
In other recent news, The Vita Coco Co. Inc has been facing potential supply chain disruptions due to a looming strike by U.S. dockworkers and extended sea freight transit times. Piper Sandler, while maintaining a Neutral rating on the company, has expressed concerns over these possible disruptions affecting Vita Coco's fourth-quarter numbers for 2024. Despite these challenges, Vita Coco reported a 3% growth in net sales for the second quarter of 2024, indicating strong financial health with a net income of $19 million and a gross profit increase of $8 million from the previous year. The company continues to project its full-year net sales to range between $500 million and $510 million, with adjusted EBITDA anticipated to be between $76 million and $82 million. Piper Sandler reaffirmed its 2024 EBITDA estimate for Vita Coco at approximately $77 million and the 2025 estimate at approximately $87 million. Amidst these recent developments, Vita Coco remains committed to expanding its customer base and increasing its international presence. These events highlight the company's resilience in navigating supply chain adversities while maintaining its growth trajectory.
InvestingPro Insights
To provide additional context to Jonathan Burth's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Vita Coco Company (NASDAQ:COCO).
As of the latest data, Vita Coco has a market capitalization of $1.65 billion, positioning it as a mid-cap company in the beverage industry. The company's P/E ratio stands at 27.99, which is relatively high but not uncommon for growth-oriented companies in the consumer goods sector.
One of the InvestingPro Tips highlights that Vita Coco is "Trading at a low P/E ratio relative to near-term earnings growth." This is supported by the company's PEG ratio of 0.35 for the last twelve months as of Q2 2024, suggesting that the stock may be undervalued relative to its earnings growth potential. This could provide some context for why executives like Burth might retain significant holdings despite periodic sales.
Another relevant InvestingPro Tip indicates that Vita Coco "Holds more cash than debt on its balance sheet." This strong financial position is further reinforced by the tip stating that "Liquid assets exceed short term obligations." These factors suggest that the company has a solid financial foundation, which may be reassuring to investors in light of insider transactions.
The company's revenue for the last twelve months as of Q2 2024 was $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%, indicates that Vita Coco is maintaining profitability while expanding its market presence.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's mentioned here. In fact, there are 5 more InvestingPro Tips available for Vita Coco, which could provide further depth to understanding the company's financial position and market outlook.
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