In a recent move that has caught the attention of the market, Vita Coco Company, Inc. (NASDAQ:COCO) Director Ira Liran sold a significant number of shares in the company. According to the latest filings, Liran sold shares worth over $1.15 million.
The transactions, which took place on March 19 and March 20, 2024, involved the sale of 13,998 and 19,022 shares at an average price of approximately $25.015 and $25.013 respectively, on the first day, and another 13,283 shares at an average price of $25.034 on the following day. These sales were executed in multiple transactions with prices ranging from $25.00 to $25.13 for the first set of transactions, and from $25.00 to $25.12 for the latter, as indicated by the weighted average prices reported.
It's noteworthy that the sales were conducted under a pre-arranged 10b5-1 trading plan, a tool that allows insiders to set up a predetermined plan to sell company stock, thereby avoiding accusations of insider trading.
Post-transaction, Liran's direct holdings in Vita Coco have been adjusted to 645,942 shares. Additionally, it was disclosed that the shares sold on March 19 were indirectly held by the Ira Liran 2012 Family Trust, leaving the trust with a remaining indirect ownership of 1,008,707 shares after the sale. The following day's sale also reduced the trust's indirect ownership to 995,424 shares.
Investors and followers of Vita Coco will be keeping a close eye on the company's stock performance and any further insider transactions that may provide insights into the company's health and the confidence of its key executives and directors.
InvestingPro Insights
Following the recent insider transactions at Vita Coco Company, Inc. (NASDAQ:COCO), investors may be interested in key financial metrics and expert analysis to better understand the company's valuation and financial health. According to InvestingPro, Vita Coco holds a market capitalization of $1.43 billion and has been trading at a high Price / Book multiple of 6.97 as of the last twelve months ending Q4 2023.
With an eye on profitability, Vita Coco has delivered a strong return over the last month, with a 19.0% price total return, indicating a positive market sentiment. This is further supported by analysts' predictions, as reflected in InvestingPro Tips, that the company will be profitable this year. The company's ability to generate cash flows that can sufficiently cover interest payments is another reassuring sign for investors considering the company's financial resilience.
InvestingPro also highlights that Vita Coco has been profitable over the last twelve months, with an operating income margin of 11.52% and a notable EBITDA growth of 368.03%. It's worth noting that the company does not pay a dividend to shareholders, which may be a strategic decision to reinvest earnings back into the company for further growth.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are currently 8 more tips available on InvestingPro's platform for Vita Coco. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights to inform their investment decisions.
The next earnings date for Vita Coco is set for May 8, 2024, which will be a critical time for investors to assess the company's performance and future outlook. With a fair value estimate of $27.99 from InvestingPro and analyst targets placing the fair value at $30, investors will be watching closely to see if the company's fundamentals align with these valuations.
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