In recent trading activity, Jonathan Burth, the Chief Operating Officer of Vita Coco Company, Inc. (NASDAQ:COCO), executed a notable sale of common stock. On December 12, Burth sold 14,836 shares at a weighted average price of $37.612, totaling $558,011. This transaction was conducted under a Rule 10b5-1 trading plan. The sale comes as COCO trades near its 52-week high of $37.88, with the stock delivering an impressive 40% return over the past year. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.68/5.
Additionally, Burth exercised stock options to acquire 14,836 shares at a price of $10.178, amounting to $151,000. Following these transactions, Burth's direct ownership stands at 105,417 shares.
Furthermore, on December 13, Burth gifted 1,309 shares to a charitable donor-advised fund, reflecting a commitment to philanthropy. This transaction did not involve any monetary exchange.
In other recent news, The Vita Coco Co. has reported mixed outcomes in its Q3 2024 earnings call, with a 4% decrease in net sales to $133 million, largely attributed to a 37% fall in private label sales. Despite this, the company raised its full-year guidance for net sales and adjusted EBITDA. Notably, the Vita Coco Coconut Water brand demonstrated resilience with an 8% growth in the U.S. and a 19% increase in the UK, partly offsetting the decline in sales. 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.
In a recent adjustment, BofA Securities increased its price target on The Vita Coco Co. to $38.00 from the previous $30.00, while maintaining a Neutral rating on the stock. This revision follows an assessment of the company's sales performance and resolution of inventory issues. BofA Securities attributes the sluggish sales growth to inventory constraints due to temporary challenges in ocean freight availability and transit times, which have now been addressed according to recent Nielsen data and the company's third-quarter earnings call.
Looking ahead to 2025, BofA Securities forecasts a 13.5% increase in sales for Americas Vita Coco Coconut Water, slightly above the consensus estimate of 12.5%. Despite concerns about high ocean freight costs impacting Q4 margins, the company anticipates these costs to decline in the coming year. Vita Coco also plans to increase its production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity. These are among the recent developments for the company.
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