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Insider Stock Buying Reaches US$3.2m On Westrock Coffee Company \

Over the last year, a good number of insiders have significantly increased their holdings in Westrock Coffee Company, LLC (NASDAQ:WEST). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Westrock Coffee Company

The Last 12 Months Of Insider Transactions At Westrock Coffee Company

In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Chairman of the Board Joe Ford bought US$1.3m worth of shares at a price of US$12.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.69). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

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Westrock Coffee Company insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Westrock Coffee Company Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Westrock Coffee Company. In total, insiders bought US$868k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Westrock Coffee Company Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Westrock Coffee Company insiders own 22% of the company, currently worth about US$193m 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 Company Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Westrock Coffee Company. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Westrock Coffee Company. Every company has risks, and we've spotted 2 warning signs for Westrock Coffee Company you should know about.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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