Vita Coco executive chairman sells over $64k in company stock By Investing.com

Vita Coco Company, Inc. (NASDAQ:COCO) Executive Chairman Michael Kirban has sold a portion of his company shares, according to recent filings. The transaction, which took place on March 21, involved the sale of 2,562 shares of common stock at a weighted average price of $25.046 per share, totaling approximately $64,167.

The sales were conducted under a pre-arranged 10b5-1 trading plan, a tool that allows insiders to sell shares at predetermined times to avoid accusations of insider trading. The shares were sold in multiple transactions with prices ranging from $25.00 to $25.21.

Following the sale, Kirban still holds a significant stake in the company. The SEC filing indicates that shares are owned both directly and indirectly through trusts associated with Kirban. Specifically, the Michael Kirban Revocable Trust holds 640,348 shares directly after the sale, and the Michael Kirban 2010 Trust holds 2,026,229 shares indirectly.

In addition to the shares sold, the filing also disclosed Kirban’s holdings in derivative securities in the form of non-qualified stock options. These options provide the right to buy shares of common stock at exercise prices ranging from $10.178 to $26.18, with various vesting schedules and expiration dates extending up to 2034.

The transactions provide investors with insights into the movements of Vita Coco’s executives and may be of interest to those monitoring insider activity as an indicator of company performance and executive confidence in the business’s prospects.

InvestingPro Insights

As Vita Coco Company, Inc. (NASDAQ:COCO) sees its Executive Chairman, Michael Kirban, adjusting his stake in the company, investors may consider various financial metrics and analyst insights to gauge the investment landscape of COCO. According to InvestingPro data, Vita Coco boasts a robust market capitalization of $1.4 billion, reflecting a significant presence in the market. The company’s Price to Earnings (P/E) ratio stands at 31.42, and when adjusted for the last twelve months as of Q4 2023, it slightly lowers to 29.43, which could suggest a somewhat high valuation relative to earnings.

More intriguingly, Vita Coco’s Price to Book (P/B) ratio for the same period is 6.82, indicating that the market values the company at nearly seven times its book value. This could imply that investors are willing to pay a premium for the company’s assets and future growth potential. Additionally, the company has experienced a revenue growth of 15.39% in the last twelve months as of Q4 2023, signaling a healthy expansion in sales.

InvestingPro Tips highlight several key strengths for Vita Coco. The company’s cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations, suggesting a solid liquidity position. Moreover, analysts predict that Vita Coco will be profitable this year, and it has indeed been profitable over the last twelve months. These factors may inspire confidence in investors, considering the company’s financial stability and potential for sustained profitability.

For those looking to delve deeper into Vita Coco’s financials and future outlook, InvestingPro offers additional tips and insights. There are currently 9 more InvestingPro Tips available, which can be accessed at InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive access to advanced analytics that could inform your investment decisions.

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