Westrock Coffee (NASDAQ:WEST) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Westrock Coffee has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, impacting investor sentiment towards the stock.
• Stifel Nicolaus lowered its price target on the stock to $10.00, while other brokerages maintain a consensus price target of $10.60 with an average rating of "Moderate Buy".
• Insider trading activity showed that Director Joe T. Ford purchased 70,000 shares, increasing his ownership by 25.32%, indicating confidence in the company's prospects.

Westrock Coffee (NASDAQ:WEST - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other analysts also recently issued research reports about the stock. Benchmark restated a "buy" rating and set a $10.00 price target on shares of Westrock Coffee in a report on Wednesday, April 16th. Stifel Nicolaus cut their price target on shares of Westrock Coffee from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Finally, Telsey Advisory Group restated an "outperform" rating and set a $10.00 price target on shares of Westrock Coffee in a report on Tuesday, August 5th. One analyst has rated the stock with a sell rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $10.60.

Westrock Coffee Trading Down 1.8%

Shares of NASDAQ WEST traded down $0.12 during midday trading on Friday, reaching $6.48. 728,143 shares of the stock were exchanged, compared to its average volume of 299,624. The company has a 50 day simple moving average of $6.50 and a 200 day simple moving average of $6.52. The stock has a market capitalization of $613.27 million, a P/E ratio of -6.89 and a beta of 0.53. The company has a debt-to-equity ratio of 23.42, a quick ratio of 0.57 and a current ratio of 1.04. Westrock Coffee has a twelve month low of $5.28 and a twelve month high of $9.70.

Westrock Coffee (NASDAQ:WEST - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.14) by $0.02. The business had revenue of $280.86 million during the quarter, compared to the consensus estimate of $238.34 million. Westrock Coffee had a negative net margin of 9.28% and a negative return on equity of 64.79%. As a group, equities analysts expect that Westrock Coffee will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Westrock Coffee

In related news, Director Joe T. Ford acquired 25,000 shares of the stock in a transaction that occurred on Thursday, May 15th. The stock was purchased at an average price of $7.44 per share, with a total value of $186,000.00. Following the transaction, the director owned 371,445 shares of the company's stock, valued at approximately $2,763,550.80. This trade represents a 7.22% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 27.70% of the company's stock.

Hedge Funds Weigh In On Westrock Coffee

Hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. purchased a new position in shares of Westrock Coffee during the 4th quarter worth approximately $840,000. Millennium Management LLC boosted its position in Westrock Coffee by 198.9% in the 4th quarter. Millennium Management LLC now owns 589,450 shares of the company's stock valued at $3,784,000 after buying an additional 392,214 shares during the period. Cresset Asset Management LLC purchased a new position in Westrock Coffee in the 4th quarter valued at approximately $353,000. Mariner LLC boosted its position in Westrock Coffee by 109.7% in the 4th quarter. Mariner LLC now owns 127,620 shares of the company's stock valued at $819,000 after buying an additional 66,751 shares during the period. Finally, Vanguard Group Inc. boosted its position in Westrock Coffee by 7.7% in the 4th quarter. Vanguard Group Inc. now owns 2,812,993 shares of the company's stock valued at $18,059,000 after buying an additional 199,939 shares during the period. Hedge funds and other institutional investors own 45.08% of the company's stock.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings.