Vita Coco (NASDAQ:COCO) Shares Down 5.6% on Disappointing Earnings

Shares of Vita Coco Company, Inc. (NASDAQ:COCO) were down 5.6% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $51.48 and last traded at $53.3570. Approximately 656,600 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 714,818 shares. The stock had previously closed at $56.52.

The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.04). The business had revenue of $127.79 million during the quarter, compared to analyst estimates of $117.80 million. Vita Coco had a net margin of 11.35% and a return on equity of 25.08%. Vita Coco’s revenue for the quarter was up .4% on a year-over-year basis. During the same quarter last year, the business earned $0.06 earnings per share.

Key Stories Impacting Vita Coco

Here are the key news stories impacting Vita Coco this week:

• Positive Sentiment: Revenue beat and strong full‑year performance — Q4 net sales were $127.8M (above consensus) and full‑year net sales rose to $610M (+18%), with net income and adjusted EBITDA up year‑over‑year. This supports the company’s underlying growth story. GlobeNewswire Release
• Positive Sentiment: Margin tailwinds cited — analysts and coverage (Barron’s) point to lower tariffs and recent price increases as boosting gross margins, which helped lift adjusted EBITDA and could support margin expansion going forward. Barron’s Article
• Neutral Sentiment: FY26 guidance is in a wide range — the company guided net sales of $680M–$700M (consensus ~$687M) and adjusted EBITDA $122M–$128M. The range overlaps Street estimates, so guidance neither clearly surprises to the upside nor fully soothes concerns. GlobeNewswire Release
• Negative Sentiment: EPS miss — Q4 EPS of $0.09 missed consensus of $0.13, which is the primary near‑term catalyst for the stock decline as it raises near‑term earnings visibility concerns despite revenue strength. Zacks Article
• Negative Sentiment: Top‑line momentum slowdown in the quarter — Q4 revenue was essentially flat year‑over‑year (+0.4%), highlighting that recent price/mix and margin improvements have been more important than volume growth. This raises questions about sustainable growth velocity. Zacks Key Metrics

Analyst Upgrades and Downgrades

COCO has been the topic of several analyst reports. Wells Fargo & Company upped their target price on Vita Coco from $50.00 to $63.00 and gave the stock an “overweight” rating in a report on Monday, January 5th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Vita Coco in a research note on Monday, December 29th. Evercore raised their target price on shares of Vita Coco from $50.00 to $55.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. Wall Street Zen raised shares of Vita Coco from a “hold” rating to a “buy” rating in a research report on Saturday, December 20th. Finally, The Goldman Sachs Group increased their price target on shares of Vita Coco from $52.00 to $58.00 and gave the company a “buy” rating in a research note on Tuesday, November 18th. Seven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Vita Coco has a consensus rating of “Moderate Buy” and a consensus price target of $53.50.

Insiders Place Their Bets

In other news, Director Ira Liran sold 33,862 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $50.27, for a total transaction of $1,702,242.74. Following the completion of the sale, the director owned 602,579 shares in the company, valued at $30,291,646.33. The trade was a 5.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Kenneth Sadowsky sold 3,900 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $53.92, for a total value of $210,288.00. Following the transaction, the director owned 608,266 shares in the company, valued at approximately $32,797,702.72. This trade represents a 0.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 117,043 shares of company stock valued at $6,222,959. Company insiders own 32.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Vident Advisory LLC acquired a new stake in shares of Vita Coco during the fourth quarter worth $284,000. Fuller & Thaler Asset Management Inc. acquired a new position in shares of Vita Coco in the fourth quarter valued at about $73,242,000. Empowered Funds LLC bought a new position in Vita Coco during the fourth quarter worth about $583,000. Zacks Investment Management acquired a new stake in Vita Coco in the 4th quarter worth about $333,000. Finally, Wellington Management Group LLP boosted its holdings in Vita Coco by 22.1% in the 4th quarter. Wellington Management Group LLP now owns 2,432,362 shares of the company’s stock valued at $128,940,000 after purchasing an additional 439,958 shares during the period. Institutional investors own 88.49% of the company’s stock.

Vita Coco Stock Performance

The stock’s fifty day simple moving average is $54.36 and its 200-day simple moving average is $45.94. The stock has a market cap of $2.85 billion, a P/E ratio of 43.53, a P/E/G ratio of 1.60 and a beta of 0.38.

About Vita Coco

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.