Westrock Coffee (NASDAQ:WEST) Trading 3.8% Higher - Still a Buy?

Key Points

• Westrock Coffee shares jumped about 3.8% intraday to $4.97 (high $5.05) on Tuesday with ~293,929 shares traded, while analysts are mixed (three Buys, two Sells) and the consensus rating is Hold with a $8.00 target.
• The company reported an earnings miss—EPS of ($0.21) vs. ($0.10) expected—despite revenue beating estimates ($339.5M vs. $317.4M), and shows weak profitability (negative ROE 233.53% and net margin -7.61%) with analysts forecasting -$0.30 EPS for the year.
• Insiders are buying: Director Joe T. Ford acquired 55,000 shares at $4.60 (an 11.48% increase in his stake), and insiders now own 27.7% of the company, indicating notable insider conviction.

Westrock Coffee Company (NASDAQ:WEST - Get Free Report) traded up 3.8% during mid-day trading on Tuesday . The stock traded as high as $5.05 and last traded at $4.97. 293,929 shares traded hands during trading, a decline of 12% from the average session volume of 335,308 shares. The stock had previously closed at $4.79.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Zacks Research cut shares of Westrock Coffee from a "hold" rating to a "strong sell" rating in a research report on Friday, March 20th. Stifel Nicolaus reduced their price target on shares of Westrock Coffee from $10.00 to $7.00 and set a "buy" rating on the stock in a research report on Wednesday, March 11th. Wall Street Zen upgraded shares of Westrock Coffee from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. Telsey Advisory Group reiterated an "outperform" rating and set a $7.00 price target on shares of Westrock Coffee in a research report on Monday, March 9th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Westrock Coffee in a research report on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat, Westrock Coffee presently has an average rating of "Hold" and a consensus target price of $8.00.

Westrock Coffee Stock Performance

The company has a debt-to-equity ratio of 37.87, a quick ratio of 0.48 and a current ratio of 0.96. The firm's 50-day moving average is $4.53 and its 200-day moving average is $4.45.

Westrock Coffee (NASDAQ:WEST - Get Free Report) last announced its quarterly earnings data on Tuesday, March 10th. The company reported ($0.21) earnings per share for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.11). The business had revenue of $339.47 million during the quarter, compared to analysts' expectations of $317.40 million. Westrock Coffee had a negative return on equity of 233.53% and a negative net margin of 7.61%. As a group, equities analysts predict that Westrock Coffee Company will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other Westrock Coffee news, Director Joe T. Ford acquired 55,000 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were acquired at an average price of $4.60 per share, for a total transaction of $253,000.00. Following the completion of the acquisition, the director owned 533,916 shares in the company, valued at $2,456,013.60. This trade represents a 11.48% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 27.70% of the company's stock.

Institutional Investors Weigh In On Westrock Coffee

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Westrock Coffee by 10.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 21,292 shares of the company's stock worth $154,000 after purchasing an additional 2,003 shares during the period. MetLife Investment Management LLC grew its holdings in Westrock Coffee by 14.9% in the fourth quarter. MetLife Investment Management LLC now owns 20,863 shares of the company's stock worth $85,000 after purchasing an additional 2,704 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Westrock Coffee by 10.1% in the third quarter. Alliancebernstein L.P. now owns 31,720 shares of the company's stock worth $154,000 after buying an additional 2,900 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Westrock Coffee by 79.2% in the third quarter. BNP Paribas Financial Markets now owns 7,782 shares of the company's stock worth $38,000 after buying an additional 3,439 shares in the last quarter. Finally, Rhumbline Advisers lifted its stake in shares of Westrock Coffee by 8.1% in the second quarter. Rhumbline Advisers now owns 49,510 shares of the company's stock worth $284,000 after buying an additional 3,723 shares in the last quarter. Hedge funds and other institutional investors own 45.08% of the company's stock.

About Westrock Coffee

Westrock Coffee Company is a global integrated coffee roaster and manufacturer that delivers end-to-end solutions across the coffee and tea supply chain. The company sources, roasts, blends, packages and distributes a diverse range of products, including hot and cold brew coffee, single-serve pods, instant and soluble coffee, tea, and specialty coffee extracts. Serving retail, convenience, foodservice and industrial customers, Westrock Coffee offers both private-label and co-packed branded products to meet the needs of supermarkets, quick-service restaurants, office coffee services and other channels.

Since its founding in 2008, Westrock Coffee has grown through a combination of organic expansion and strategic acquisitions to establish manufacturing facilities across North America, Latin America and Europe.

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