Vita Coco (NASDAQ:COCO) Shares Down 4.1% - Should You Sell?

Key Points

• Vita Coco's stock price fell 4.1% recently, closing at $33.35 after a trading session with significantly lower volume than average.
• Recent analyst ratings show mixed opinions, with upgrades from Evercore ISI and Morgan Stanley setting price targets at $38.00, while Wall Street Zen downgraded the stock to a "hold" rating.
• Vita Coco reported quarterly earnings that exceeded expectations, with earnings per share of $0.38, up 17.1% in revenue year-over-year.

Vita Coco Company, Inc. (NASDAQ:COCO - Get Free Report)'s share price traded down 4.1% during trading on Monday . The stock traded as low as $33.21 and last traded at $33.35. 454,970 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 724,150 shares. The stock had previously closed at $34.76.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen downgraded Vita Coco from a "buy" rating to a "hold" rating in a research report on Saturday, June 7th. Morgan Stanley boosted their price target on Vita Coco from $35.00 to $38.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Wells Fargo & Company boosted their price target on Vita Coco from $43.00 to $45.00 and gave the company 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 company a "buy" rating in a research note on Wednesday, April 30th. Finally, Evercore ISI boosted their price target on Vita Coco from $35.00 to $38.00 and gave the company an "outperform" rating in a research note on Thursday, May 1st. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, Vita Coco has an average rating of "Moderate Buy" and an average target price of $38.29.

Vita Coco Stock Down 0.3%

The firm has a 50 day simple moving average of $36.09 and a two-hundred day simple moving average of $34.99. The stock has a market capitalization of $1.83 billion, a P/E ratio of 30.11, a PEG ratio of 1.79 and a beta of 0.37.

Vita Coco (NASDAQ:COCO - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.38 earnings per share for the quarter, topping 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 firm had revenue of $168.76 million during the quarter, compared to analysts' expectations of $162.20 million. During the same period in the prior year, the company earned $0.32 earnings per share. The company's quarterly revenue was up 17.1% on a year-over-year basis. On average, research analysts predict that Vita Coco Company, Inc. will post 1.07 earnings per share for the current year.

Insider Activity at Vita Coco

In other news, Director John Zupo sold 8,000 shares of the company's stock in a transaction on Thursday, May 8th. The shares were sold at an average price of $34.77, for a total transaction of $278,160.00. Following the completion of the transaction, the director directly owned 8,876 shares in the company, valued at approximately $308,618.52. This represents a 47.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 transaction, the chief marketing officer owned 134,188 shares of the company's stock, valued at $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 sold 3,846,562 shares of company stock valued at $131,933,805. 34.20% of the stock is owned by company insiders.

Institutional Trading of Vita Coco

Institutional investors and hedge funds have recently bought and sold shares of the stock. TT International Asset Management LTD acquired a new stake in Vita Coco in the first quarter valued at $3,035,000. BNP Paribas Financial Markets acquired a new stake in Vita Coco in the fourth quarter valued at $1,806,000. GAMMA Investing LLC increased its holdings in Vita Coco by 3,258.2% in the first quarter. GAMMA Investing LLC now owns 26,328 shares of the company's stock valued at $859,000 after purchasing an additional 25,544 shares during the period. Renaissance Technologies LLC acquired a new stake in Vita Coco in the fourth quarter valued at $458,000. Finally, Hussman Strategic Advisors Inc. acquired a new stake in Vita Coco in the first quarter valued at $1,609,000. 88.49% of the stock is currently owned by institutional investors and hedge funds.

Vita Coco Company Profile

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.