We wouldn't blame The Vita Coco Company, Inc. (NASDAQ:COCO) shareholders if they were a little worried about the fact that Michael Kirban, the Co-Founder recently netted about US$3.4m selling shares at an average price of US$68.00. However, that sale only accounted for 2.4% of their holding, so arguably it doesn't say much about their conviction.

Vita Coco Company Insider Transactions Over The Last Year

In fact, the recent sale by Michael Kirban was the biggest sale of Vita Coco Company shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$68.21, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.4% of Michael Kirban's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Vita Coco Company Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Vita Coco Company insiders own 8.6% of the company, currently worth about US$337m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Vita Coco Company Insider Transactions Indicate?

An insider hasn't bought Vita Coco Company stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Vita Coco Company is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vita Coco Company. For example - Vita Coco Company has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.