Jane Prior, the Chief Marketing Officer of Vita Coco Company, Inc. (NASDAQ:COCO), recently made significant transactions involving the company's common stock. According to a filing with the Securities and Exchange Commission, Prior sold a total of 20,000 shares over two days, November 1 and November 4, 2024. The shares were sold at prices ranging from $32.112 to $35.0, resulting in a total value of approximately $671,120.
In addition to the sales, Prior also exercised options to acquire 20,000 shares at a price of $10.178 each. These transactions were part of a pre-established trading plan under Rule 10b5-1, as noted in the filing. Following these transactions, Prior holds 131,834 shares of Vita Coco common stock directly.
In other recent news, The Vita Coco Company reported mixed financial results for the third quarter of 2024. The leading beverage producer experienced a 4% decrease in net sales year-over-year, totaling $133 million. This decline was majorly attributed to a 37% drop in private label sales, counterbalanced somewhat by an 8% growth in its Vita Coco Coconut Water product. Despite these mixed results, Vita Coco has raised its full-year guidance for net sales and adjusted EBITDA, demonstrating confidence in the brand's potential growth.
Net income for the quarter rose to $19 million, a significant increase from $15 million in the same period last year. This increase was aided by reduced SG&A costs and favorable FX derivatives. In terms of future expectations, the company anticipates full-year net sales to range between $505 million and $515 million and adjusted EBITDA to be between $80 million and $84 million.
These recent developments, including the company's plan to increase production capacity for 2025 and 2026, indicate Vita Coco's strategic approach to navigate the current market dynamics and capitalize on the expanding coconut water market.
InvestingPro Insights
The recent stock transactions by Vita Coco's CMO Jane Prior come at a time when the company's stock is showing strong momentum. According to InvestingPro data, Vita Coco has seen impressive returns, with a 21.27% price increase over the past month and a 31.55% gain over the last three months. This performance aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, with the current price at 98% of that peak.
Despite the recent sales by the CMO, Vita Coco's financial health appears robust. The company boasts a market capitalization of $1.96 billion and has demonstrated profitability over the last twelve months. An InvestingPro Tip highlights that Vita Coco holds more cash than debt on its balance sheet, suggesting a strong financial position.
However, investors should note that the stock's valuation metrics present a mixed picture. While the company is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.58, it also has a high P/E ratio of 33.67 and a high Price/Book multiple of 7.96. These metrics suggest that while there's potential for growth, the stock may be priced at a premium.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Vita Coco, providing a more comprehensive view of the company's prospects and potential risks.
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