Vita Coco (NASDAQ:COCO) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Vita Coco to a "strong‑buy", joining multiple analyst upgrades and leaving a MarketBeat consensus of Moderate Buy with a ~$69 price target and several bank targets in the $65–$75 range.
• Vita Coco reported a strong Q1 beat—$0.50 EPS vs. $0.34 estimate and $179.8M revenue (+37% YoY)—and raised full‑year revenue/EBITDA guidance, which has been the main catalyst for the recent rally.
• Notable insider selling (executed under pre‑arranged 10b5‑1 plans), very high institutional ownership (~88%), plus a Pomerantz investigation and flagged geopolitical risks raise potential headline risk and volatility despite the momentum.

Vita Coco (NASDAQ:COCO - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Thursday,Zacks.com reports.

Several other research firms also recently commented on COCO. Wall Street Zen upgraded shares of Vita Coco from a "sell" rating to a "buy" rating in a research note on Saturday. Morgan Stanley set a $65.00 price objective on shares of Vita Coco in a research note on Thursday. Evercore reiterated an "outperform" rating and set a $70.00 price objective on shares of Vita Coco in a research note on Thursday, March 12th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Vita Coco in a research note on Friday, March 27th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $70.00 target price on shares of Vita Coco in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Vita Coco has a consensus rating of "Moderate Buy" and a consensus price target of $69.00.

Vita Coco Stock Performance

Shares of NASDAQ COCO opened at $66.75 on Thursday. The company has a market cap of $3.81 billion, a PE ratio of 48.72, a P/E/G ratio of 1.62 and a beta of 0.72. The business has a 50-day simple moving average of $52.70 and a two-hundred day simple moving average of $51.20. Vita Coco has a fifty-two week low of $30.54 and a fifty-two week high of $69.58.

Vita Coco (NASDAQ:COCO - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.16. Vita Coco had a return on equity of 25.43% and a net margin of 12.59%.The business had revenue of $179.77 million during the quarter, compared to the consensus estimate of $148.39 million. During the same quarter last year, the company earned $0.31 earnings per share. The company's quarterly revenue was up 37.4% on a year-over-year basis. On average, sell-side analysts predict that Vita Coco will post 1.72 earnings per share for the current fiscal year.

Insider Activity at Vita Coco

In related news, CEO Martin Roper sold 25,000 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $50.95, for a total transaction of $1,273,750.00. Following the completion of the transaction, the chief executive officer directly owned 298,484 shares in the company, valued at $15,207,759.80. The trade was a 7.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira Liran sold 30,000 shares of the business's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $56.65, for a total transaction of $1,699,500.00. Following the transaction, the director owned 572,579 shares of the company's stock, valued at $32,436,600.35. This represents a 4.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 477,800 shares of company stock valued at $27,053,262 over the last ninety days. Corporate insiders own 32.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of COCO. Wasatch Advisors LP lifted its holdings in Vita Coco by 80.3% in the first quarter. Wasatch Advisors LP now owns 3,675,489 shares of the company's stock valued at $176,093,000 after acquiring an additional 1,637,437 shares during the period. Wilmington Savings Fund Society FSB acquired a new position in Vita Coco in the third quarter valued at approximately $62,815,000. Wellington Management Group LLP raised its position in shares of Vita Coco by 232.2% in the third quarter. Wellington Management Group LLP now owns 1,992,404 shares of the company's stock worth $84,617,000 after acquiring an additional 1,392,678 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new position in shares of Vita Coco in the fourth quarter worth about $73,242,000. Finally, Westfield Capital Management Co. LP acquired a new position in shares of Vita Coco in the third quarter worth about $45,135,000. 88.49% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Vita Coco

Here are the key news stories impacting Vita Coco this week:

• Positive Sentiment: Strong Q1 beat and raised guidance — COCO reported $0.50 EPS and ~ $180M revenue (≈+37% YoY), beat estimates, and raised full‑year revenue/EBITDA guidance; that print is the main catalyst for the recent rally. Press Release
• Positive Sentiment: Analyst upgrades and higher targets — Wells Fargo raised its price target to $75 and put an Overweight on COCO, and other banks (Goldman, Jefferies, Evercore) have also issued buy/outperform views, reinforcing buy‑side interest. Benzinga
• Positive Sentiment: Momentum/quality recognition — COCO was highlighted on Zacks’ momentum list and picked up coverage noting a 95+ composite rating, supporting the growth narrative among momentum investors. Zacks Momentum MSN: 95+ Rating
• Neutral Sentiment: Insider selling (planned 10b5‑1 trades) — CEO, COO and Chairman disclosed multiple share sales (large blocks in late April). These trades increase float near recent highs but were executed under pre‑arranged 10b5‑1 plans, which lowers governance alarm. Investors should watch follow‑through selling. SEC Form 4
• Neutral Sentiment: High institutional ownership — Institutions own ~88% of shares, which can amplify moves (momentum on the upside, or rapid rotation on any negative news). MarketBeat Profile
• Negative Sentiment: Investor litigation risk — Pomerantz announced an investigation into COCO, which can create headline risk, legal costs, and distracted management focus if it develops. PR Newswire
• Negative Sentiment: New geopolitical risk disclosure — The company flagged heightened geopolitical tensions as a potential pressure on costs, supply chain and margins; worsening conditions could hit gross margins or availability. TipRanks
• Negative Sentiment: Longer‑term skepticism — Some analysts/commentaries caution that COCO’s category is niche and competition could cap long‑term upside, tempering valuation expectations after the run. Seeking Alpha

About Vita Coco

Vita Coco, Inc NASDAQ: COCO is a global beverage company specializing in coconut-based products. Founded in 2004 by Michael Kirban and Ira Liran, the company pioneered the introduction of refrigerated coconut water to U.S. consumers. Headquartered in New York City, Vita Coco sources coconuts from growers in tropical regions such as the Philippines, Indonesia and Brazil, partnering with local farmers to promote sustainable agriculture and community development.

The company's flagship offering, Vita Coco Original Coconut Water, is available in multiple pack sizes and a variety of flavors.

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