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Michael Kirban, Executive Chairman of Vita Coco Company, Inc. (NASDAQ:COCO), a $2 billion market cap beverage company currently trading near its Fair Value according to InvestingPro analysis, has recently sold shares worth approximately $1.39 million. The transactions, which took place on March 14 and March 17, 2025, involved selling a total of 40,000 shares of common stock. The shares were sold at prices ranging from $34.571 to $35.063 per share, with the stock showing impressive 40% returns over the past year.
Following these transactions, Kirban holds 1,689,049 shares indirectly through the Michael Kirban 2010 Trust. Additionally, the report reflects a transfer of 297,180 shares as part of a divorce settlement, which were not sold by Kirban and are not beneficially owned by him. The company maintains strong financial health with an "GREAT" rating from InvestingPro, which highlights that it holds more cash than debt on its balance sheet - one of 10 key ProTips available for this stock.
The sales were conducted under a Rule 10b5-1 trading plan, providing a pre-arranged schedule for selling stock. This ensures the transactions are executed in compliance with insider trading laws. With a solid current ratio of 3.3x and strong return on equity of 24%, the company demonstrates robust operational efficiency despite trading at relatively high valuation multiples.
In other recent news, The Vita Coco Company reported impressive fourth-quarter results, with adjusted earnings per share reaching $0.11, surpassing the analyst estimate of $0.07. The company’s revenue for the quarter was $127 million, exceeding the consensus estimate of $120.41 million and marking a 20% year-over-year increase. For the full year 2024, Vita Coco’s net sales grew by 5% to $516 million, with a notable 10% increase in sales of Vita Coco Coconut Water. However, investors expressed concern over the company’s 2025 revenue guidance, which is projected to be between $555 million and $570 million, falling short of the analyst consensus of $569.4 million at the midpoint.
Additionally, Jefferies analyst Kaumil Gajrawala adjusted the price target for Vita Coco to $42.00, slightly down from $43.00, while maintaining a Buy rating. The analyst highlighted the company’s robust sales and EBITDA figures in the fourth quarter, which exceeded expectations despite supply chain challenges. Gajrawala noted that Vita Coco is on a strong footing with normalizing capacity and inventory levels, a quickening pace of consumption, and declining freight rates. Despite the cautious initial guidance for fiscal year 2025, the analyst expressed confidence in the company’s resilience and market position. Vita Coco ended 2024 with $165 million in cash and no debt, highlighting its strong financial standing.
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