Westrock Coffee (NASDAQ:WEST) Trading Up 7.2% - Still a Buy?

Key Points

• Westrock Coffee popped about 7.2% on Monday, trading as high as $5.94 and finishing around $5.895 with ~340,404 shares changing hands, slightly above average volume.
• Analyst sentiment is mixed — the stock has an average rating of "Hold" with an average target price of $7.00, ranging from Zacks' "strong sell" to Telsey Advisory's "outperform."
• Fundamentals show weakness (Q last reported EPS of -$0.21, missing estimates, negative net margin and ROE), but insiders remain active: director Joe T. Ford bought 55,000 shares at $4.60, bringing insider ownership to 27.7%.

Westrock Coffee Company (NASDAQ:WEST - Get Free Report) was up 7.2% on Monday . The company traded as high as $5.94 and last traded at $5.8950. Approximately 340,404 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 336,165 shares. The stock had previously closed at $5.50.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on WEST. Zacks Research lowered Westrock Coffee from a "hold" rating to a "strong sell" rating in a report on Friday, March 20th. Stifel Nicolaus dropped their price objective on Westrock Coffee from $10.00 to $7.00 and set a "buy" rating on the stock in a report on Wednesday, March 11th. Weiss Ratings reissued a "sell (e+)" rating on shares of Westrock Coffee in a report on Wednesday, January 21st. Wall Street Zen raised Westrock Coffee from a "sell" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and set a $7.00 price objective on shares of Westrock Coffee in a research note on Monday, March 9th. Three research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $7.00.

Westrock Coffee Trading Up 8.5%

The company has a market capitalization of $577.88 million, a PE ratio of -6.28 and a beta of 0.49. 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 business has a fifty day moving average price of $4.55 and a 200 day moving average price of $4.46.

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

Insider Activity at Westrock Coffee

In other news, Director Joe T. Ford bought 55,000 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was bought at an average price of $4.60 per share, for a total transaction of $253,000.00. Following the transaction, the director owned 533,916 shares in the company, valued at $2,456,013.60. The trade was a 11.48% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 27.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Hsbc Holdings PLC bought a new stake in shares of Westrock Coffee in the 4th quarter worth approximately $57,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Westrock Coffee in the 4th quarter worth approximately $47,000. Susquehanna Portfolio Strategies LLC bought a new stake in shares of Westrock Coffee in the 4th quarter worth approximately $289,000. Private Capital Management LLC lifted its holdings in shares of Westrock Coffee by 33.3% in the 4th quarter. Private Capital Management LLC now owns 60,000 shares of the company's stock worth $244,000 after purchasing an additional 15,000 shares during the last quarter. Finally, Millennium Management LLC lifted its holdings in shares of Westrock Coffee by 111.2% in the 4th quarter. Millennium Management LLC now owns 676,400 shares of the company's stock worth $2,753,000 after purchasing an additional 356,118 shares during the last quarter. Institutional investors and hedge funds 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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