NEW YORK—Liran Ira, a director at Vita Coco Company, Inc. (NASDAQ:COCO), has sold 30,000 shares of the company's common stock, according to a recent regulatory filing. The shares were sold at a weighted average price of $35.582, amounting to a total transaction value of approximately $1.07 million. This transaction was conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stock. According to InvestingPro data, the stock has shown remarkable strength with a 39% gain year-to-date and maintains a "GREAT" overall financial health score.
Following this sale, Ira holds 853,729 shares indirectly through the Ira Liran 2012 Family Trust and 635,055 shares directly. The sales were executed in multiple transactions at prices ranging from $34.74 to $36.29. The company, known for its coconut water products, continues to be a significant player in the beverage industry, with a market capitalization of $2 billion and strong fundamentals. InvestingPro analysis reveals the company holds more cash than debt and maintains a healthy current ratio of 3.28, indicating robust liquidity. For deeper insights into COCO's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, The Vita Coco Co. has shown mixed outcomes in its Q3 2024 earnings call. Despite a 4% decrease in net sales to $133 million, primarily due to a 37% drop in private label sales, the company raised its full-year guidance for net sales and adjusted EBITDA. The Vita Coco Coconut Water brand demonstrated resilience with an 8% growth in the U.S. and a 19% increase in the UK. The company's net income for the quarter rose 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.
BofA Securities maintains a Neutral rating on Vita Coco stock and has raised its target, forecasting a 13.5% increase in sales for Americas Vita Coco Coconut Water in 2025. This comes after a modest year-to-date sales increase of 3.2% in the Americas, which accounts for 65% of its total sales. The firm attributes the slower growth to inventory constraints, which have now been resolved according to the company's recent earnings call.
In other developments, Vita Coco plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity. These advancements, along with the resolution of previous inventory issues, position Vita Coco to engage in advertising, merchandising, and promotional activities to bolster sales. These are among the recent developments for the company.
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