Vita Coco (NASDAQ:COCO) Shares Gap Up on Analyst Upgrade

Key Points

• Vita Coco shares surged after Piper Sandler upgraded the stock from a neutral to an overweight rating, raising its target price to $39.00.
• Despite the upgrade, Wall Street Zen downgraded Vita Coco from a buy to a hold rating, showing mixed analyst sentiments on the stock.
• Insider activity has been notable, with key insiders selling a combined total of 20,000 shares recently, indicating potential shifts in confidence among company leaders.

Vita Coco Company, Inc. (NASDAQ:COCO - Get Free Report) shares gapped up before the market opened on Wednesday after Piper Sandler upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $33.94, but opened at $35.03. Piper Sandler now has a $39.00 price target on the stock. Vita Coco shares last traded at $35.58, with a volume of 279,857 shares trading hands.

Several other equities analysts have also commented on COCO. Wall Street Zen lowered Vita Coco from a "buy" rating to a "hold" rating in a research note on Saturday, June 7th. Wells Fargo & Company raised their target price on shares of Vita Coco from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Evercore ISI boosted their price target on shares of Vita Coco from $35.00 to $38.00 and gave the company an "outperform" rating in a report on Thursday, May 1st. Morgan Stanley increased their price objective on shares of Vita Coco from $35.00 to $38.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Finally, The Goldman Sachs Group set a $41.00 price objective on shares of Vita Coco and gave the stock a "buy" rating in a research note on Wednesday, April 30th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $38.38.

Insiders Place Their Bets

In other news, insider Es Charles Van sold 10,000 shares of the business's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $38.02, for a total transaction of $380,200.00. Following the sale, the insider owned 94,127 shares in the company, valued at approximately $3,578,708.54. The trade was a 9.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Jane Prior sold 10,000 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $37.07, for a total transaction of $370,700.00. Following the completion of the transaction, the chief marketing officer directly owned 134,188 shares of the company's stock, valued at $4,974,349.16. The trade was a 6.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 37,800 shares of company stock valued at $1,384,226. 34.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Vita Coco

Several hedge funds and other institutional investors have recently bought and sold shares of COCO. Voya Investment Management LLC lifted its stake in Vita Coco by 3,376.9% during the 1st quarter. Voya Investment Management LLC now owns 586,969 shares of the company's stock valued at $17,991,000 after acquiring an additional 570,087 shares during the period. Bank of America Corp DE increased its stake in shares of Vita Coco by 382.2% in the fourth quarter. Bank of America Corp DE now owns 512,120 shares of the company's stock worth $18,902,000 after acquiring an additional 405,913 shares during the period. Driehaus Capital Management LLC raised its holdings in shares of Vita Coco by 77.3% during the fourth quarter. Driehaus Capital Management LLC now owns 854,617 shares of the company's stock worth $31,544,000 after purchasing an additional 372,633 shares during the last quarter. Marshall Wace LLP acquired a new position in Vita Coco during the second quarter valued at $9,627,000. Finally, Wellington Management Group LLP lifted its position in Vita Coco by 102.2% during the first quarter. Wellington Management Group LLP now owns 511,462 shares of the company's stock valued at $15,676,000 after purchasing an additional 258,521 shares during the period. Institutional investors and hedge funds own 88.49% of the company's stock.

Vita Coco Price Performance

The firm's fifty day simple moving average is $35.75 and its 200 day simple moving average is $34.68. The company has a market capitalization of $2.03 billion, a PE ratio of 33.33, a price-to-earnings-growth ratio of 1.79 and a beta of 0.37.

Vita Coco (NASDAQ:COCO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.02. Vita Coco had a return on equity of 24.99% and a net margin of 11.50%.The business had revenue of $168.76 million during the quarter, compared to analysts' expectations of $162.20 million. During the same quarter in the previous year, the firm posted $0.32 EPS. The company's revenue for the quarter was up 17.1% on a year-over-year basis. Vita Coco has set its FY 2025 guidance at EPS. On average, equities research analysts anticipate that Vita Coco Company, Inc. will post 1.07 EPS for the current fiscal year.

About Vita Coco

The Vita Coco Company, Inc develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company offers coconut oil and coconut milk; juice; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink.

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