Kenneth M. Parent, a director at Westrock Coffee Co (NASDAQ:WEST), recently purchased 62,735 shares of the company's common stock. The acquisition, completed on December 2, 2024, was executed at a weighted average price of $8.07 per share, with prices ranging from $7.96 to $8.09. The purchase comes as the stock has declined nearly 29% over the past six months, according to InvestingPro data. The total value of the transaction amounted to approximately $506,271. Following this transaction, Parent's direct ownership in Westrock Coffee Co increased to 112,451 shares. While the company currently trades below InvestingPro's Fair Value estimate, it operates with significant debt and is not profitable over the last twelve months. Analysts expect the company to return to profitability this year, with comprehensive analysis available in the Pro Research Report covering this and 1,400+ other US stocks.
In other recent news, Westrock Coffee Company has reported substantial growth in its latest earnings call, despite facing various economic challenges. The company announced a 33% increase in revenue and a 36% rise in volumes, with strong growth projections for its Beverage Solutions and Sustainable Sourcing & Traceability segments. The Conway extract and ready-to-drink plant are expected to significantly contribute to revenues starting early 2025, backed by new customer commitments.
Westrock Coffee also reported a 19% increase in its Beverage Solutions segment's adjusted EBITDA and a 45% rise in the SS&T segment. The company has set its fiscal year 2024 guidance for consolidated adjusted EBITDA at $50 million, including $10 million in Conway scale-up costs. For fiscal year 2025, the company projects its adjusted EBITDA to be between $80 million and $100 million.
In terms of recent developments, Ken Parent has been appointed as Vice Chairman to support the transition to commercial production. The company is also making a push for immediate absorption and full capacity at the Conway facility in 2025. Despite challenges in single-serve cup volumes due to economic headwinds, the company is optimistic about its growth, with a projected EBITDA run rate of $125 million to $150 million by the end of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.