In a recent transaction, Joe T. Ford (NYSE:F), a director at Westrock Coffee Co (NASDAQ:WEST), acquired additional shares of the company, demonstrating his confidence in the beverage manufacturer's future. As per the latest filings, Ford purchased 5,000 shares of Westrock Coffee Co at an average price of $6.97, totaling $34,850.
The transaction, which took place on September 12, 2024, was disclosed in a Form 4 filing with the Securities and Exchange Commission. According to the filing, the shares were bought in multiple transactions at prices ranging from $6.96 to $6.97. This purchase has increased Ford's direct holdings to 249,445 shares.
In addition to his direct holdings, Ford is associated with several trusts and a limited liability company, which hold substantial amounts of Westrock Coffee Co stock. However, Ford has disclaimed beneficial ownership over these shares, indicating that he does not have a pecuniary interest in them.
The recent acquisition by Ford might be of interest to investors as insider transactions can provide insights into how company executives view the stock's value and prospects. With Ford's increased investment, market watchers may take a closer look at Westrock Coffee Co's performance and future potential in the competitive beverage industry.
In other recent news, Westrock Coffee reported a decrease in net sales but an increase in consolidated gross profit and adjusted EBITDA during their Q2 2024 earnings call. The company has commenced commercial operations at their Conway, Arkansas facility, starting full production and sales on their multi-serve bottle line. They also anticipate the commencement of commercial sales for their RTD canning line in the second half of the year, and the completion of the glass bottle line later this year. Despite a decline in single-serve cup segment sales, Westrock Coffee estimates an annualized adjusted EBITDA run rate of $125 million to $150 million by the end of 2025. The company also reported a 200 basis point improvement in margins and a 16% increase in consolidated gross profit. CEO Scott Ford expressed satisfaction with the quarter's results and highlighted the momentum going forward. Despite some setbacks in sales and delays in project timelines, Westrock Coffee is positioning itself for growth in the coming years.
InvestingPro Insights
Following Joe T. Ford's recent share acquisition of Westrock Coffee Co (NASDAQ:WEST), which signals a vote of confidence in the company's trajectory, it is valuable for investors to consider additional insights from InvestingPro. The company's current market capitalization stands at approximately $652.73 million, indicating its size within the market landscape. However, it's worth noting that Westrock Coffee Co has been grappling with challenges, as reflected in its negative P/E ratio of -16.95, suggesting that the company has not been profitable in the recent past.
An InvestingPro Tip points out that the company is expected to see net income growth this year, which could be a promising sign for investors looking for a turnaround. This aligns with the optimism shown by Ford's increased stake. Another tip highlights that the stock is currently trading in oversold territory according to the Relative Strength Index (RSI), which may interest value investors looking for potential entry points.
From a valuation standpoint, Westrock Coffee Co's stock has been under pressure, trading near its 52-week low and experiencing significant price drops over the last week, month, and three months. Specifically, the 1-week price total return is down by -11.62%, while the 1-month and 3-month returns have decreased by -18.45% and -25.45%, respectively. This could present a buying opportunity, as suggested by the recent insider purchase, if investors believe in the company's capacity to recover and grow its net income as forecasted.
Investors interested in further insights and analysis can find a wealth of additional InvestingPro Tips on Westrock Coffee Co, providing deeper dives into the company's financial health, valuation, and market performance. For those looking to make informed decisions, accessing the full suite of tips at InvestingPro could be invaluable.
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