Jonathan Burth, Chief Operating Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently sold 905 shares of the company's common stock. The shares were sold at a weighted average price of approximately $30.04, amounting to a total transaction value of $27,186. Following this sale, Burth retains ownership of 123,300 shares in the company.
The transaction, executed under a Rule 10b5-1 trading plan, was reported in a recent SEC filing. This plan allows insiders to set up a predetermined schedule for selling stocks, providing an avenue for them to sell shares without concerns about insider trading accusations.
In addition to his current holdings, Burth holds several non-qualified stock options with varying exercise prices and expiration dates, providing him the right to purchase additional shares in the future.
In other recent news, The Vita Coco Co. Inc has reported a 3% growth in net sales for the second quarter of 2024, with a net income of $19 million and a gross profit increase of $8 million from the previous year. Despite potential supply chain disruptions due to a looming strike by U.S. dockworkers and extended sea freight transit times, 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, however, has maintained a Neutral rating on Vita Coco shares, expressing concerns over potential revenue pressures due to these disruptions. The firm has revised its forecast for Vita Coco's 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA), reducing its 2024 EBITDA estimate from approximately $82 million to $77 million. These recent developments highlight the challenges Vita Coco faces amidst an uncertain supply chain environment, while also showcasing the company's resilience and potential for growth.
InvestingPro Insights
While Jonathan Burth's recent stock sale might raise eyebrows, a closer look at Vita Coco Company's (NASDAQ:COCO) financials reveals a robust underlying business. According to InvestingPro data, the company boasts a market capitalization of $1.65 billion and has demonstrated strong financial performance.
Vita Coco's revenue for the last twelve months as of Q2 2023 stood at $500.02 million, with a healthy gross profit margin of 40.38%. The company's profitability is further underscored by its operating income margin of 15.65% for the same period. These figures align with an InvestingPro Tip indicating that the company has been profitable over the last twelve months.
Another InvestingPro Tip highlights that Vita Coco is trading at a low P/E ratio relative to its near-term earnings growth. This is supported by the company's PEG ratio of 0.35, suggesting that the stock may be undervalued considering its growth prospects. Additionally, the company has shown a strong return over the last three months, with a price total return of 18.5%.
For investors seeking more comprehensive insights, InvestingPro offers 10 additional tips for Vita Coco, providing a deeper understanding of the company's financial health and market position. These additional tips can be particularly valuable in contextualizing insider transactions like Burth's recent sale.
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