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)'s share price 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 traded.

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

Insider Buying and Selling

In related news, Director Kenneth Sadowsky sold 3,900 shares of the stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $37.65, for a total value of $146,835.00. Following the transaction, the director directly owned 631,666 shares of the company's stock, valued at approximately $23,782,224.90. This trade represents a 0.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CMO Jane Prior sold 10,000 shares of the company's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $37.07, for a total transaction of $370,700.00. Following the sale, the chief marketing officer directly owned 134,188 shares of the company's stock, valued at approximately $4,974,349.16. This trade represents a 6.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 37,800 shares of company stock valued at $1,384,226. 34.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in COCO. MAI Capital Management purchased a new position in Vita Coco in the second quarter valued at about $33,000. Coppell Advisory Solutions LLC raised its position in Vita Coco by 91.5% in the fourth quarter. Coppell Advisory Solutions LLC now owns 1,283 shares of the company's stock valued at $47,000 after purchasing an additional 613 shares during the period. EverSource Wealth Advisors LLC raised its position in Vita Coco by 5,376.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,369 shares of the company's stock valued at $49,000 after purchasing an additional 1,344 shares during the period. Ameritas Advisory Services LLC purchased a new position in Vita Coco in the second quarter valued at about $50,000. Finally, CWM LLC raised its position in Vita Coco by 14.7% in the first quarter. CWM LLC now owns 2,868 shares of the company's stock valued at $88,000 after purchasing an additional 367 shares during the period. 88.49% of the stock is owned by hedge funds and other institutional investors.

Vita Coco Price Performance

The firm has a 50-day simple moving average of $35.92 and a 200 day simple moving average of $34.64. The company has a market capitalization of $1.98 billion, a PE ratio of 32.59, a price-to-earnings-growth ratio of 1.94 and a beta of 0.37.

Vita Coco (NASDAQ:COCO - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.38 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 company had revenue of $168.76 million for the quarter, compared to analyst estimates of $162.20 million. During the same period last year, the company posted $0.32 earnings per share. The firm's revenue was up 17.1% compared to the same quarter last year. Vita Coco has set its FY 2025 guidance at EPS. Equities research analysts expect 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.