Vita Coco Under Investigation Amid Fraud Claims, Stock Plummets

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: Apr 09 2026

0mins

COCO-1.76%

Should l Buy COCO?

Source: PRnewswire

Securities Fraud Investigation: Pomerantz LLP is investigating whether Vita Coco and its executives have engaged in securities fraud or other unlawful business practices, indicating serious concerns among investors regarding corporate governance that could lead to legal repercussions.
Contract Loss Risk: A report by NINGI Research alleges that Vita Coco may lose a key contract with Costco, which represents approximately 25% of its net sales, potentially resulting in significant revenue loss and a weakened market position for the company.
Internal Operational Issues: The report also highlights that Vita Coco is facing internal challenges such as supply chain mismanagement, related-party transactions, and poor performance outside its core coconut water business, exacerbating investor anxiety about the company's future prospects.
Stock Price Plunge: Following the news, Vita Coco's stock price fell by $3.90, or 11%, closing at $31.55 per share on March 26, 2025, reflecting the market's pessimistic outlook on the company's future.

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Analyst Views on COCO

Wall Street analysts forecast COCO stock price to rise

10 Analyst Rating

8 Buy

2 Hold

0 Sell

Strong Buy

Current: 48.320

Low

49.00

Averages

57.50

High

63.00

Current: 48.320

Low

49.00

Averages

57.50

High

63.00

Wells Fargo

Overweight

downgrade

$63 -> $60

2026-04-08

Reason

Wells Fargo

Price Target

$63 -> $60

AI Analysis

2026-04-08

downgrade

Overweight

Reason

Wells Fargo lowered the firm's price target on Vita Coco to $60 from $63 and keeps an Overweight rating on the shares. The firm is broadly lowering estimates for the sector ahead of quarterly results. The earnings revisions were anchored by unique, company-specific commodity sheets in all Wells' models, the firm adds. This makes the margin builds much more specific to the track of this inflationary backdrop, namely into Q4 2026 and 2027, with embedded recovery into 2028.

Evercore ISI

Outperform

maintain

$58 -> $70

2026-03-12

Reason

Evercore ISI

Price Target

$58 -> $70

2026-03-12

maintain

Outperform

Reason

Evercore ISI raised the firm's price target on Vita Coco to $70 from $58 and keeps an Outperform rating on the shares following "upbeat" meetings with the company's management team. Scanner data suggests the year is running ahead of plan, says the analyst, who raised the firm's EPS estimates and continues to believe Vita Coco has "the best growth story in Beverages."

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About COCO

The Vita Coco Company, Inc. operates in the functional beverages industry. The Company specializes in the coconut and other plant waters category and is a supplier of private label coconut water. The Company's branded portfolio is led by its Vita Coco brand, which specializes in coconut water category in the United States with electrolytes, nutrients and vitamins, and also includes coconut oil, juice, and milk offerings. The Company's PWR LIFT brand is a protein-infused fitness drink. The Company's segments include Americas and International. The Company's Americas segment is comprised of its operations in the Americas region, primarily in the United States and Canada. The Company's International segment is comprised of its operations primarily in Europe, the Middle East, and the Asia Pacific regions, which includes its sourcing entity. The Company's products are distributed primarily through club, food, drug, mass, convenience, e-commerce, and food service channels.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Vita Coco CEO Stock Sale Triggers Share Price Drop

1 hour agoYahoo Finance

Executive Stock Sale: CEO Martin Roper sold approximately $1.25 million in common stock under a pre-established Rule 10b5-1 plan, resulting in a 2.4% drop in share price during the afternoon session, raising investor concerns about the company's future prospects.
Market Reaction Analysis: Despite the stock price decline, Vita Coco's shares have experienced over 15 moves greater than 5% in the past year, indicating that the market considers this news significant but does not fundamentally alter its perception of the business.
Financial Performance Review: The company's recent earnings report showed earnings of $0.09 per share, falling 29.6% short of analyst expectations of $0.13, while revenue of $127.8 million beat expectations but sales volumes declined by 3.7% year-on-year, raising concerns about consumer demand.
Investment Return Situation: Since its IPO in October 2021, an investment of $1,000 in Vita Coco shares has grown to $3,509, despite an 11.2% decline in stock price this year, with current trading at $47.45, which is 21.7% below its 52-week high of $60.60.

Vita Coco CEO Martin Roper Sells $1.25 Million in Shares

10 hours agoFool

Transaction Overview: CEO Martin Roper of Vita Coco disclosed the sale of 25,000 shares for approximately $1.25 million in an SEC Form 4 filing, indicating a strategic monetization at market highs while retaining about 298,484 shares directly, reflecting confidence in the company's future.
Mechanism Analysis: The sale involved exercising 25,000 vested stock options, with the resulting shares sold immediately, converting derivative exposure into realized proceeds, thereby optimizing Roper's liquidity management through this transaction.
Holding Trend: Roper's direct equity position has decreased by over 74% since October 2025, reflecting a reduced available share pool rather than a discretionary reduction in sales, indicating a cautious approach to his holdings in the current market.
Market Performance and Outlook: Vita Coco's stock has risen 52.48% over the past year, and this transaction occurred in a favorable market environment, with projected revenues for 2026 expected to reach between $680 million and $700 million, highlighting the company's strong growth potential in the health beverage sector.

Vita Coco Under Investigation for Securities Fraud

6 days agoGlobenewswire

Investigation Launched: Pomerantz LLP is investigating on behalf of Vita Coco investors regarding potential securities fraud or unlawful business practices, indicating serious concerns about corporate governance and accountability.
Contract Risk: A report from NINGI Research alleges that Vita Coco may lose a key contract with Costco, which accounts for approximately 25% of its net sales, posing a significant threat to the company's revenue and market position.
Operational Issues: The report also highlights internal operational challenges, including supply chain mismanagement and related-party transactions, which could lead to poor performance outside of its core coconut water business, thereby affecting overall financial health.
Stock Price Reaction: Following the negative news, Vita Coco's stock price fell by $3.90, or 11%, closing at $31.55 per share on March 26, 2025, reflecting market concerns regarding the company's future outlook.