Westrock Coffee (NASDAQ:WEST) Trading 14.7% Higher After Better-Than-Expected Earnings

Key Points

• Westrock Coffee's shares rose by 14.7% after the company reported better-than-expected earnings, with an EPS of ($0.12) compared to consensus estimates of ($0.14).
• Brokerages have largely maintained positive outlooks on Westrock, with several setting a target price of $10.00 and a consensus rating of "Moderate Buy".
• Insider purchasing has increased, with Director Joe T. Ford buying 70,000 shares, reflecting confidence in the company's future growth.

Westrock Coffee Company (NASDAQ:WEST - Get Free Report)'s share price was up 14.7% on Friday following a better than expected earnings announcement. The company traded as high as $7.65 and last traded at $7.64. Approximately 166,158 shares changed hands during trading, a decline of 42% from the average daily volume of 287,426 shares. The stock had previously closed at $6.66.

The company reported ($0.12) earnings per share for the quarter, beating analysts' consensus estimates of ($0.14) by $0.02. The business had revenue of $280.86 million for the quarter, compared to the consensus estimate of $238.34 million. Westrock Coffee had a negative net margin of 9.61% and a negative return on equity of 41.92%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on WEST. Telsey Advisory Group reissued an "outperform" rating and set a $10.00 price objective on shares of Westrock Coffee in a report on Tuesday. Benchmark reaffirmed a "buy" rating and set a $10.00 target price on shares of Westrock Coffee in a report on Wednesday, April 16th. Wall Street Zen upgraded shares of Westrock Coffee from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Finally, Stifel Nicolaus reduced their price target on shares of Westrock Coffee from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, April 24th. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $10.60.

Insiders Place Their Bets

In other news, Director Joe T. Ford bought 70,000 shares of the stock in a transaction dated Wednesday, May 14th. The stock was purchased at an average cost of $7.47 per share, for a total transaction of $522,900.00. Following the transaction, the director owned 346,445 shares of the company's stock, valued at $2,587,944.15. The trade was a 25.32% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last three months, insiders purchased 105,000 shares of company stock worth $782,400. Company insiders own 42.10% of the company's stock.

Hedge Funds Weigh In On Westrock Coffee

Institutional investors and hedge funds have recently made changes to their positions in the business. Los Angeles Capital Management LLC bought a new position in shares of Westrock Coffee during the second quarter valued at approximately $243,000. Savant Capital LLC purchased a new stake in Westrock Coffee in the 2nd quarter valued at about $76,000. Stephens Inc. AR increased its position in shares of Westrock Coffee by 7.0% during the second quarter. Stephens Inc. AR now owns 262,428 shares of the company's stock worth $1,504,000 after acquiring an additional 17,064 shares during the period. DAVENPORT & Co LLC grew its stake in Westrock Coffee by 8.0% in the second quarter. DAVENPORT & Co LLC now owns 263,925 shares of the company's stock worth $1,512,000 after purchasing an additional 19,455 shares in the last quarter. Finally, Krilogy Financial LLC purchased a new position in Westrock Coffee during the 2nd quarter worth $1,146,000. 45.08% of the stock is owned by hedge funds and other institutional investors.

Westrock Coffee Trading Up 13.2%

The company has a current ratio of 1.18, a quick ratio of 0.57 and a debt-to-equity ratio of 5.69. The stock has a 50-day simple moving average of $6.50 and a two-hundred day simple moving average of $6.52. The firm has a market capitalization of $713.68 million, a P/E ratio of -8.44 and a beta of 0.53.

Westrock Coffee Company Profile

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.

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