In a recent transaction, Liran Ira, director of Vita Coco Company, Inc. (NASDAQ:COCO), sold 2,824 common shares. The shares were sold at a weighted average price of $36,022, resulting in a total transaction value of $101,726. This sale was conducted as part of a pre-arranged Rule 10b5-1 trading plan. Following the sale, Ira owns 910,905 shares indirectly through the Ira Liran 2012 Family Trust and 634,426 shares directly. The transaction was filed with the SEC on November 8, 2024.
In other recent news, The Vita Coco Company reported mixed results in its third-quarter 2024 earnings call. Despite a 4% decline in net sales to $133 million, primarily due to a 37% drop in sales of private labels, the company raised its full-year guidance for net sales and adjusted EBITDA. Notably, Vita Coco’s coconut water sales grew 8%, contributing to 8% growth in the US and a 19% increase in the UK. The company also reported an increase in net income 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. .
These are recent developments, and while gross margins decreased from 41% to 39% due to higher shipping costs, the company’s cash on hand increased to $157 million, up from $133 million at the end of 2023. The company’s inventory levels also increased by 40% quarter over quarter, primarily due to higher unit costs and goods in transit. Looking ahead, Vita Coco projects full-year net sales will be between $505 million and $515 million, and adjusted EBITDA will be between $80 million and $84 million. Despite concerns about high shipping costs impacting fourth-quarter margins, the company remains optimistic about its growth potential.
InvestingPro Insights
Liran Ira’s recent insider selling in Vita Coco Company, Inc. (NASDAQ:COCO) comes as the stock is showing strong momentum. According to data from InvestingPro, COCO has seen impressive price performances over various time periods, with a gain of 26.91% over the past month and an increase of 39.18% over the past three months. This performance has led the stock to trade near its 52-week high, with the current price 97.96% off that high.
InvestingPro’s advice highlights that COCO is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential value for investors despite the recent price surge. The company’s PEG ratio of 0.6 supports this view, indicating that the stock could be undervalued relative to its growth prospects. Additionally, COCO has more cash than debt on its balance sheet, which could provide financial flexibility for future growth initiatives.
However, investors should note that the stock’s RSI suggests it may be in overbought territory, which could signal a possible short-term pullback. The P/E ratio of 34.59 and high Price-to-Book multiple of 8.01 also indicate that the stock is trading at premium valuations, which may warrant caution.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for COCO, providing a deeper understanding of the company’s financial health and market position.
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