WEST

Westrock Coffee ($WEST) Director Joe Ford Buys 105,000 Shares in Three Days as Stock Surges 22%

05/16/2025 21:14

Westrock Coffee ($WEST) board member Joe Ford has made a series of substantial stock purchases over three consecutive days. According to SEC filings, Ford acquired a total of 105,000 shares worth approximately $782,400 between May 13-15, 2025. This continues a pattern of insider buying that has emerged in recent months, particularly notable as the stock has declined nearly 35% over the past year. This isn't Ford's first significant purchase. He previously acquired 116,300 shares worth about $790,000 in March 2025, following earlier purchases of 5,000 and 7,000 shares in September and November 2024, respectively. These consistent acquisitions signal strong insider confidence in the company's long-term outlook. A striking element in Westrock Coffee's insider trading history is the clear shift in pattern. In June and July 2024, CFO Thomas Christopher Pledger sold approximately 6,700 shares, while major shareholder HF Direct Investments Pool executed significant sales under a Rule 10b5-1 plan. HF Direct sold over 300,000 shares in July and August alone as part of their strategy to divest up to 1.62 million shares over a year. However, September 2024 marked a dramatic reversal from selling to buying. On September 3, officer William Ford and director Joe Ford purchased 1,092 and 5,000 shares respectively, followed by substantial acquisitions from director Kenneth Parent (62,735 shares), director Robert Kruczek (150,000 shares), COO William Ford (15,000 shares), and others. These insider purchases occurred during a period of significant pressure on Westrock Coffee's share price. The stock fell approximately 45% from around $10.50 in June 2024 to $5.70 in early October 2024. After months of volatility, the stock has recently rebounded about 28% from $5.80 to $7.45 in May 2025. Notably, from May 9-15, immediately following Ford's recent purchase disclosures, the stock surged 22% from $6.10 to $7.45. Westrock Coffee has struggled with profitability issues since its August 2022 listing. In its most recent results for Q1 2025, the company reported a loss of 29 cents per share, wider than analysts' expectations of a 21-cent loss. However, revenue increased 11.1% year-over-year to $213.80 million, exceeding analyst projections of $206.38 million. On March 12, 2025, the company's disappointing profit forecast for fiscal year 2025 triggered a 14.3% stock plunge, marking its worst performance since August 2022. Despite these challenges, analysts maintain an average 'buy' rating on Westrock Coffee, with a median price target of $10.00, approximately 34% above current levels. Westrock Coffee is constructing a new manufacturing facility in Arkansas focused on ready-to-drink (RTD) beverage production. In an October 2024 report, Truist highlighted this facility's potential to expand operating margins. The brokerage also anticipated that new production lines planned for FY25 would improve performance in the previously uneven coffee and tea business segments. Overall, Westrock Coffee insiders, particularly director Joe Ford, are demonstrating strong confidence in the company's long-term prospects through their substantial stock purchases. While the company faces short-term profitability challenges, these insider actions suggest a belief that the current share price doesn't properly reflect the company's long-term value. Investors should remember that insider buying doesn't always lead to stock appreciation, but in Westrock Coffee's case, there appears to be a clear correlation between insider purchases and share price rebounds. The company's performance improvements and the continuity of insider buying patterns will be crucial indicators for future stock direction.

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