Celsius (NASDAQ:CELH) is in the spotlight following an $8 million sale by CEO John Fieldly. Earlier this month, shares of CELH stock surged higher after Pepsi (NASDAQ:PEP) announced that it would take an 8.5% minority stake in the energy drink company. Despite today’s decline in CELH, shares of the company are still up over 50% in the past six months.
Pepsi will invest $550 million into the company in exchange for convertible preferred stock. Upon conversion, the shares will be priced at $75 and will carry a 5% annual dividend. In addition, Pepsi will become Celsius’ preferred distribution partner and help expand its distribution network in retail and convenience stores. There is also speculation that Pepsi’s investment may eventually turn into an acquisition. In 2020, the beverages and food company acquired Rockstar Energy in a deal valued at $3.85 billion.
With that in mind, let’s get into the details of Fieldly’s sale.
CELH Stock: CEO John Fieldly Sells Shares
On Aug. 24, Fieldly sold 70,000 shares at an average price of $115.55 per share. In addition, the sale was not enacted via a prearranged 10b5-1 trading plan. After the sale, the CEO still owns 311,619 shares. Before that, Fieldly sold 80,000 shares on Aug. 1. The shares were sold at average prices ranging between $96.92 and $100.11. Unlike the Aug. 24 sale, this sale was enacted through a 10b5-1 plan.
Meanwhile, other insiders have been selling as well. On Aug. 23, Director Hal Kravitz sold 5,000 shares at an average price of $100. The sales were pursuant to a 10b5-1 plan. Furthermore, on Aug. 2, 10% owner Carl Desantis sold 96,501 shares at an average price of $103.43. Desantis sold the shares through his firm, CD Financial, of which he has 100% beneficial interest.
The sales are interesting, as Celsius reported impressive second-quarter results. However, with shares up so much in the past six months, these insiders may be simply taking profits on a successful investment. For the quarter, revenue tallied in at $154.02 million, up 136% year-over-year (YOY). Revenue also beat the Zacks consensus estimate by 2.82%. In the past four quarters, Celsius has beaten revenue estimates every time. Meanwhile, the company is profitable, reporting earnings per share (or EPS) of 12 cents, beating the estimate of eight cents.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.