Vita Coco executive chairman Michael Kirban sells $912,680 in stock

Published 20/03/2025, 21:18
Vita Coco executive chairman Michael Kirban sells $912,680 in stock

Michael Kirban, the Executive Chairman of Vita Coco Company, Inc. (NASDAQ:COCO), recently sold a significant portion of his holdings in the company. The sale comes as the $2 billion market cap company trades near its 52-week high, having delivered a remarkable 40% return over the past year. According to a filing with the Securities and Exchange Commission, Kirban sold a total of 26,000 shares of the company’s common stock over two days.

The transactions took place on March 18 and March 19, with Kirban selling 20,000 shares on the first day and 6,000 shares on the second. The shares were sold at prices ranging from $35.00 to $35.134, resulting in a total sale value of approximately $912,680.

Following these transactions, Kirban holds 1,663,049 shares indirectly through the Michael Kirban 2010 Trust and other entities. Additionally, he maintains direct ownership of 127,629 shares.

These sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks. This can help avoid accusations of insider trading.

Investors often keep a close eye on insider transactions, as they can provide insights into the executives’ outlook on the company’s future performance.

In other recent news, The Vita Coco Company reported fourth-quarter results that exceeded expectations, with adjusted earnings per share reaching $0.11, surpassing the analyst estimate of $0.07. Revenue for the quarter was $127 million, which exceeded the consensus estimate of $120.41 million and marked 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 Vita Coco Coconut Water sales. Despite these strong results, the company’s 2025 revenue guidance of $555 million to $570 million fell short of analyst expectations, with the midpoint below the consensus of $569.4 million. Gross margin for 2025 is projected to decline to between 35% and 37%, down from 39% in 2024.

Jefferies analyst Kaumil Gajrawala adjusted the price target for Vita Coco to $42.00 from $43.00, while maintaining a Buy rating. This adjustment reflects the company’s robust fourth-quarter performance, despite supply chain challenges and increasing freight costs. Gajrawala noted that Vita Coco is well-positioned with normalizing inventory levels and a quickening pace of consumption. The analyst expressed confidence in the company’s strong footing and resilience, despite short-term obstacles. Vita Coco ended 2024 with $165 million in cash and no debt, indicating a solid financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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