An analyst sees good growth prospects for The Vita Coco Company Inc. (COCO)

The Vita Coco Company Inc. (NASDAQ: COCO) stock fell -6.91% on Friday to $26.79 against a previous-day closing price of $28.78. With 1.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.64 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $29.15 whereas the lowest price it dropped to was $25.92. The 52-week range on COCO shows that it touched its highest point at $33.29 and its lowest point at $7.39 during that stretch. It currently has a 1-year price target of $30.43. Beta for the stock currently stands at 0.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of COCO was down-trending over the past week, with a drop of -6.13%, but this was up by 0.49% over a month. Three-month performance dropped to -7.94% while six-month performance rose 54.77%. The stock gained 94.69% in the past year, while it has gained 93.85% so far this year. A look at the trailing 12-month EPS for COCO yields 0.50 with Next year EPS estimates of 0.80. For the next quarter, that number is 0.23. This implies an EPS growth rate of -60.30% for this year and 8.24% for next year.

Float and Shares Shorts:

At present, 56.33 million COCO shares are outstanding with a float of 45.57 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.28 million, which was 7.59% higher than short shares on Jul 30, 2023. In addition to Mr. Michael Kirban as the firm’s Co-Founder, Exec. Chairman & Pres, Mr. Martin F. Roper serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 62.79% of COCO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.50% of COCO, in contrast to 23.89% held by mutual funds. Shares owned by individuals account for 18.72%. As the largest shareholder in COCO with 3.14% of the stake, The Vanguard Group, Inc. holds 1,772,403 shares worth 1,772,403. A second-largest stockholder of COCO, BlackRock Fund Advisors, holds 1,734,657 shares, controlling over 3.07% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in COCO, holding 1,371,092 shares or 2.43% stake. With a 1.95% stake in COCO, the Granahan Funds Plc – US SMID Sele is the largest stakeholder. A total of 1,099,392 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.71% of COCO stock, is the second-largest Mutual Fund holder. It holds 963,753 shares valued at 27.26 million. Fidelity Small Cap Growth Fund holds 1.17% of the stake in COCO, owning 660,491 shares worth 18.69 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, COCO reported revenue of $115.31M and operating income of $5.03M. The EBITDA in the recently reported quarter was $5.04M and diluted EPS was $0.02.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COCO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With COCO analysts setting a high price target of $35.00 and a low target of $25.00, the average target price over the next 12 months is $30.43. Based on these targets, COCO could surge 30.65% to reach the target high and fall by -6.68% to reach the target low. Reaching the average price target will result in a growth of 13.59% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

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