A US$87m market cap addition is just what The Vita Coco Company, Inc. (NASDAQ:COCO) insiders like to see after purchasing stock worth US$1.9m

Last week, The Vita Coco Company, Inc. (NASDAQ:COCO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 15% last week, resulting in a US$87m increase in the company's market worth. As a result, their original purchase of US$1.9m worth of stock is now worth US$2.4m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Vita Coco Company

The Last 12 Months Of Insider Transactions At Vita Coco Company

The Co-CEO & Director Martin Roper made the biggest insider purchase in the last 12 months. That single transaction was for US$875k worth of shares at a price of US$9.06 each. We do like to see buying, but this purchase was made at well below the current price of US$11.80. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Vita Coco Company insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Vita Coco Company is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Vita Coco Company Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Vita Coco Company shares, worth about US$89m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vita Coco Company Tell Us?

The fact that there have been no Vita Coco Company insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Vita Coco Company insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Vita Coco Company (including 1 which is potentially serious).

But note: Vita Coco Company may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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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.