Insider Spends US$424k Buying More Shares In Westrock Coffee
Potential Westrock Coffee Company (NASDAQ:WEST) shareholders may wish to note that the Co-Founder & Chairman of the Board, Joe Ford, recently bought US$424k worth of stock, paying US$8.16 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.
View our latest analysis for Westrock Coffee
Westrock Coffee Insider Transactions Over The Last Year
The Co-Founder Scott Ford made the biggest insider purchase in the last 12 months. That single transaction was for US$454k worth of shares at a price of US$11.65 each. That means that an insider was happy to buy shares at above the current price of US$8.57. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Westrock Coffee insiders were buying shares, but not selling. Their average price was about US$10.24. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Westrock Coffee is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Westrock Coffee
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Westrock Coffee insiders own 15% of the company, currently worth about US$114m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Westrock Coffee Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Westrock Coffee insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Westrock Coffee you should be aware of, and 1 of these is a bit unpleasant.
But note: Westrock Coffee may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
