Group President?Operations of Westrock Beverage Solutions of Westrock Coffee Picks Up 5.5% More Stock

Investors who take an interest in Westrock Coffee Company (NASDAQ:WEST) should definitely note that the Group President?Operations of Westrock Beverage Solutions, William Ford, recently paid US$7.54 per share to buy US$189k worth of the stock. Although the purchase only increased their holding by 5.5%, it is still a solid purchase in our view.

View our latest analysis for Westrock Coffee

The Last 12 Months Of Insider Transactions At Westrock Coffee

Notably, that recent purchase by William Ford is the biggest insider purchase of Westrock Coffee shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.66). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.

Over the last year, we can see that insiders have bought 98.09k shares worth US$829k. But they sold 28.72k shares for US$221k. In the last twelve months there was more buying than selling by Westrock Coffee insiders. They paid about US$8.45 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Westrock Coffee Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Westrock Coffee insiders own 16% of the company, worth about US$100m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Westrock Coffee Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Westrock Coffee insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Westrock Coffee. For example - Westrock Coffee has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.