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Joe T. Ford, a director at Westrock (NYSE:WRK) Coffee Co (NASDAQ:WEST), has significantly increased his holdings in the company through a series of stock purchases. According to a recent SEC filing, Ford acquired a total of 126,300 shares of Westrock Coffee’s common stock over several transactions on March 14 and March 17. The purchases were made at prices ranging from $6.61 to $7.04 per share, amounting to a total investment of approximately $790,243. The purchases come as analysts maintain a bullish outlook on the stock, with price targets ranging from $9 to $13, suggesting significant upside potential despite the company’s current challenges with profitability.
These transactions were executed indirectly through trusts and other entities, with Ford acting as trustee. Following these acquisitions, Ford’s total holdings in Westrock Coffee have increased, reflecting his confidence in the company’s prospects. While InvestingPro data shows the company operates with a significant debt burden, with a debt-to-equity ratio of 5.99, analysts expect net income growth this year. The purchases were made as part of routine trading activity and were disclosed in accordance with regulatory requirements. Get access to 8 more key insights and comprehensive analysis with InvestingPro’s detailed research report.
In other recent news, Westrock Coffee Company reported its fourth-quarter earnings, revealing revenues of $174 million, which slightly missed the consensus estimate of $176 million. The company also reported an Adjusted EBITDA of $13.3 million, close to the anticipated $13.7 million. However, a more significant earnings miss was noted, with a Q4 EPS of ($0.26), falling short of the expected ($0.03), and revenue reported at $228.98 million, below the anticipated $252.52 million. Westrock Coffee has revised its full-year 2025 Adjusted EBITDA forecast to a range of $60 million to $73 million, a more conservative outlook than the previous range of $80 million to $100 million.
The company attributed part of its financial results to scale-up costs associated with its Conway Facility, which impacted adjusted EBITDA figures. Despite these challenges, Westrock Coffee saw a 6.5% increase in net sales and a 9.2% rise in gross profit for the fourth quarter. Analysts from Benchmark and Stifel maintained their Buy ratings on Westrock Coffee, with price targets of $10.00 and $12.00, respectively. Stifel’s analysis suggests 2025 will be a transitional year with improving EBITDA, though acknowledging the impact of ongoing scale-up costs. These recent developments highlight Westrock Coffee’s efforts to align its production capabilities with market demands.
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