In a recent transaction, William H. Milmoe, a significant shareholder of Celsius Holdings , Inc. (NASDAQ:CELH), sold call options on the company's stock, generating a total of $10,000. These options give the holder the right to purchase shares at a set price within a specified time frame.
The transaction involved the sale of 100 call options, which are related to 10,000 shares of Celsius Holdings' common stock. The options were sold at an option premium of $20.25 per call and are exercisable through January 2025. This means that the buyer of these options has the right, but not the obligation, to buy Celsius Holdings' common stock at the exercise price of $100 per share anytime before the expiration date.
It's important to note that the sale of covered calls is a common strategy among stockholders who may seek to generate income from their holdings or potentially sell their shares at a predetermined price. In this case, the transaction indicates that Milmoe is committed to selling the shares at the exercise price if the options are exercised by the holder.
Celsius Holdings, Inc., based in Boca Raton, Florida, operates in the beverage industry, specializing in bottled and canned soft drinks and carbonated waters. The company has been gaining attention in the market for its performance and innovative product offerings.
Investors often watch insider transactions as they can provide insights into how the company's executives and significant shareholders view the stock's value and future prospects. However, such transactions are not necessarily indicative of future stock performance and should be considered alongside other market data and company developments.
InvestingPro Insights
As Celsius Holdings, Inc. (NASDAQ:CELH) continues to capture market interest, recent insider transactions and company performance metrics offer valuable insights for investors. According to InvestingPro data, Celsius Holdings has a market capitalization of $20.11 billion and a rather high Price to Earnings (P/E) ratio of 110.09, indicating that the stock is trading at a considerable earnings multiple. This is further evidenced by the adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at 110.48.
The company's revenue growth has been impressive, with a surge of 101.65% over the last twelve months as of Q4 2023. This robust growth trajectory is supported by an InvestingPro Tip that analysts anticipate further sales growth in the current year. Moreover, the stock has experienced a significant one-year price total return of 220.63%, highlighting the strong performance and investor confidence in the company.
Despite the high earnings multiple, one InvestingPro Tip notes that Celsius Holdings trades at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.61, suggesting that the stock could be undervalued when factoring in its earnings growth potential. This could be of particular interest to investors considering the insider transaction involving the sale of call options by a significant shareholder.
For those seeking additional insights and analysis, InvestingPro offers more tips on Celsius Holdings, Inc. To explore these further, visit https://www.investing.com/pro/CELH and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 19 more InvestingPro Tips available, providing a comprehensive view of the company's financial health and market position.
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