Vita Coco (NASDAQ:COCO) Sets New 52-Week High - Time to Buy?

Key Points

• Vita Coco shares hit a new 52-week high (intraday high $70.42) as several analysts raised price targets—Jefferies to $78 and Wells Fargo to $75—leaving a MarketBeat consensus rating of Moderate Buy with a $69 consensus target.
• The company reported a strong quarter, beating estimates with $0.50 EPS vs. $0.34 expected and revenue of $179.8M (up 37.4% year-over-year vs. $148.4M est.), supporting analyst upward revisions.
• Insiders sold shares recently (Chairman sold 50,000 and CEO 25,000 under 10b5-1 plans), while institutional ownership is very high (about 88.5%) and several funds materially increased stakes.

Vita Coco Company, Inc. (NASDAQ:COCO - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $70.42 and last traded at $70.1670, with a volume of 219228 shares trading hands. The stock had previously closed at $68.21.

Analysts Set New Price Targets

A number of research analysts have issued reports on COCO shares. Zacks Research upgraded Vita Coco from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Jefferies Financial Group lifted their price objective on Vita Coco from $63.00 to $78.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Wall Street Zen raised Vita Coco from a "sell" rating to a "buy" rating in a report on Saturday, May 2nd. Wells Fargo & Company lifted their target price on Vita Coco from $60.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. Finally, Piper Sandler reissued an "overweight" rating and issued a $70.00 target price on shares of Vita Coco in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $69.00.

Vita Coco Stock Up 6.2%

The company has a market cap of $4.14 billion, a P/E ratio of 52.66, a price-to-earnings-growth ratio of 1.65 and a beta of 0.72. The company has a fifty day moving average of $53.54 and a 200 day moving average of $51.94.

Vita Coco (NASDAQ:COCO - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $0.50 EPS 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 company had revenue of $179.77 million during the quarter, compared to analyst estimates of $148.39 million. During the same quarter in the previous year, the company posted $0.31 earnings per share. Vita Coco's revenue was up 37.4% compared to the same quarter last year. As a group, research analysts forecast that Vita Coco Company, Inc. will post 1.76 EPS for the current year.

Insiders Place Their Bets

In related news, Chairman Michael Kirban sold 50,000 shares of the business's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $68.00, for a total value of $3,400,000.00. Following the sale, the chairman directly owned 515,681 shares in the company, valued at approximately $35,066,308. The trade was a 8.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Martin Roper sold 25,000 shares of the business's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $50.11, for a total value of $1,252,750.00. Following the completion of the sale, the chief executive officer owned 298,484 shares in the company, valued at $14,957,033.24. This represents a 7.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 429,800 shares of company stock valued at $24,354,302 over the last three months. Insiders own 32.30% of the company's stock.

Institutional Investors Weigh In On Vita Coco

A number of hedge funds have recently made changes to their positions in the company. Wasatch Advisors LP grew its stake in shares of Vita Coco by 80.3% during the first quarter. Wasatch Advisors LP now owns 3,675,489 shares of the company's stock valued at $176,093,000 after buying an additional 1,637,437 shares during the last quarter. Wilmington Savings Fund Society FSB purchased a new position in Vita Coco in the 3rd quarter worth $62,815,000. Wellington Management Group LLP raised its stake in shares of Vita Coco by 232.2% during the 3rd quarter. Wellington Management Group LLP now owns 1,992,404 shares of the company's stock valued at $84,617,000 after buying an additional 1,392,678 shares during the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in shares of Vita Coco in the 4th quarter valued at about $73,242,000. Finally, Westfield Capital Management Co. LP purchased a new position in shares of Vita Coco in the 3rd quarter valued at about $45,135,000. 88.49% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.