Zacks Research Downgrades Vita Coco (NASDAQ:COCO) to Hold

Key Points

• Zacks Research downgraded Vita Coco from a "strong-buy" to a "hold," even as the broader analyst view remains constructive with a consensus rating of "Moderate Buy" and an average price target of $70.43.
• The stock fell 8.8% and opened at $66.14, after trading near the upper end of its 52-week range of $31.79 to $85.83.
• Recent fundamentals were strong: Vita Coco reported Q1 earnings of $0.50 per share, beating estimates of $0.34, on revenue of $179.77 million, up 37.4% year over year.

Vita Coco (NASDAQ:COCO - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms have also weighed in on COCO. Wells Fargo & Company increased their price objective on shares of Vita Coco from $75.00 to $85.00 and gave the stock an "overweight" rating in a research report on Monday, May 18th. Jefferies Financial Group upped their target price on Vita Coco from $63.00 to $78.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. The Goldman Sachs Group reiterated a "buy" rating and issued a $71.00 price target on shares of Vita Coco in a report on Thursday, April 30th. Evercore reissued an "outperform" rating and set a $70.00 price target on shares of Vita Coco in a research note on Thursday, March 12th. Finally, Wall Street Zen raised Vita Coco from a "sell" rating to a "buy" rating in a research note on Saturday, May 2nd. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $70.43.

Vita Coco Stock Down 8.8%

NASDAQ COCO opened at $66.14 on Monday. Vita Coco has a 52 week low of $31.79 and a 52 week high of $85.83. The firm has a market capitalization of $3.78 billion, a price-to-earnings ratio of 48.28, a PEG ratio of 1.74 and a beta of 0.74. The company has a fifty day moving average of $72.41 and a two-hundred day moving average of $60.21.

Vita Coco (NASDAQ:COCO - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.16. Vita Coco had a net margin of 12.59% and a return on equity of 25.43%. The business had revenue of $179.77 million for the quarter, compared to the consensus estimate of $148.39 million. During the same quarter in the prior year, the firm posted $0.31 earnings per share. The business's revenue for the quarter was up 37.4% on a year-over-year basis. Equities research analysts anticipate that Vita Coco will post 1.76 EPS for the current year.

Insider Activity at Vita Coco

In other Vita Coco news, COO Jonathan Burth sold 30,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $75.00, for a total value of $2,250,000.00. Following the transaction, the chief operating officer directly owned 57,910 shares in the company, valued at $4,343,250. This represents a 34.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira Liran sold 74,232 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $80.29, for a total transaction of $5,960,087.28. Following the transaction, the director directly owned 309,871 shares in the company, valued at approximately $24,879,542.59. This trade represents a 19.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 705,306 shares of company stock valued at $49,154,273 in the last quarter. Corporate insiders own 34.20% of the company's stock.

Institutional Investors Weigh In On Vita Coco

Institutional investors and hedge funds have recently bought and sold shares of the company. Wasatch Advisors LP grew its position in shares of Vita Coco by 80.3% during the 1st quarter. Wasatch Advisors LP now owns 3,675,489 shares of the company's stock worth $176,093,000 after buying an additional 1,637,437 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new stake in shares of Vita Coco in the third quarter valued at about $62,815,000. Wellington Management Group LLP lifted its stake in 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. purchased a new stake in Vita Coco in the fourth quarter worth about $73,242,000. Finally, Millennium Management LLC grew its holdings in Vita Coco by 164.7% during the 3rd quarter. Millennium Management LLC now owns 1,225,803 shares of the company's stock worth $52,060,000 after acquiring an additional 762,731 shares in the last quarter. 88.49% of the stock is owned by institutional investors.

Vita Coco Company Profile

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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