Westrock Coffee (NASDAQ:WEST) Reaches New 1-Year Low - Here's Why

Key Points

• Westrock Coffee shares have fallen to a new 52-week low, trading at $5.04 during recent sessions, prompting concerns about whether to sell.
• Despite the drop, the stock has a consensus rating of "Buy" among analysts, with a target price averaging around $10.60.
• Insider trading activity shows Director Joe T. Ford purchased 5,000 shares at an average price of $5.30, indicating confidence in the company's future.

Shares of Westrock Coffee Company (NASDAQ:WEST - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $5.04 and last traded at $5.05, with a volume of 632649 shares changing hands. The stock had previously closed at $5.38.

Wall Street Analyst Weigh In

Several brokerages recently commented on WEST. Telsey Advisory Group reiterated an "outperform" rating and issued a $10.00 target price on shares of Westrock Coffee in a report on Tuesday, August 5th. Wall Street Zen raised Westrock Coffee from a "sell" rating to a "hold" rating in a research note on Friday, August 22nd. Five analysts have rated the stock with a Buy rating, According to data from MarketBeat, Westrock Coffee has a consensus rating of "Buy" and a consensus target price of $10.60.

Westrock Coffee Stock Performance

The company has a quick ratio of 0.50, a current ratio of 1.04 and a debt-to-equity ratio of 23.42. The company has a 50 day simple moving average of $6.24 and a 200-day simple moving average of $6.40. The stock has a market capitalization of $492.97 million, a price-to-earnings ratio of -5.54 and a beta of 0.51.

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

Insider Buying and Selling at Westrock Coffee

In other news, Director Joe T. Ford bought 5,000 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were bought at an average cost of $5.30 per share, with a total value of $26,500.00. Following the completion of the transaction, the director directly owned 413,916 shares of the company's stock, valued at $2,193,754.80. This trade represents a 1.22% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 27.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Westrock Coffee

Several institutional investors have recently bought and sold shares of WEST. Price T Rowe Associates Inc. MD grew its holdings in Westrock Coffee by 23.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,418 shares of the company's stock worth $87,000 after buying an additional 2,588 shares in the last quarter. Northern Trust Corp grew its holdings in Westrock Coffee by 2.3% during the fourth quarter. Northern Trust Corp now owns 300,712 shares of the company's stock worth $1,931,000 after buying an additional 6,762 shares in the last quarter. BNP Paribas Financial Markets bought a new stake in Westrock Coffee during the fourth quarter worth $37,000. Bank of America Corp DE grew its holdings in Westrock Coffee by 76.9% during the fourth quarter. Bank of America Corp DE now owns 76,401 shares of the company's stock worth $490,000 after buying an additional 33,212 shares in the last quarter. Finally, Deutsche Bank AG grew its holdings in Westrock Coffee by 88.3% during the fourth quarter. Deutsche Bank AG now owns 42,294 shares of the company's stock worth $272,000 after buying an additional 19,829 shares in the last quarter. 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.