Stock Repurchase Program Approved by Coffee (NASDAQ:JVA) Board

Coffee (NASDAQ:JVA) declared that its board has approved a stock buyback program on Wednesday, October 7th, RTT News reports. The company plans to repurchase $2.50 million in shares. This repurchase authorization allows the company to reacquire up to 11% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Coffee Trading Up 16.5%

Shares of JVA traded up $0.66 during mid-day trading on Wednesday, hitting $4.65. The company’s stock had a trading volume of 315,359 shares, compared to its average volume of 77,962. Coffee has a 1-year low of $2.93 and a 1-year high of $5.03. The firm has a market capitalization of $26.55 million, a P/E ratio of 5.54 and a beta of 1.41. The firm has a 50-day simple moving average of $3.70 and a 200 day simple moving average of $3.93.

Coffee (NASDAQ:JVA) last issued its earnings results on Friday, September 11th. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.01 by $0.34. Coffee had a net margin of 4.85% and a return on equity of 16.20%. The company had revenue of $21.69 million during the quarter, compared to analysts’ expectations of $23.00 million.

Analyst Ratings Changes

Several research analysts have commented on JVA shares. Weiss Ratings cut shares of Coffee from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. DA Davidson set a $10.00 target price on shares of Coffee in a report on Wednesday, August 12th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $9.50.

Coffee Company Profile

Coffee Holding Co, Inc (NASDAQ:JVA) is a specialty coffee processor, roaster, packager and distributor headquartered in Staten Island, New York. The company supplies coffee products to retail, foodservice and private-label customers, offering roasted whole-bean and ground coffee as well as other coffee formats.

The company markets products under its own brands and also produces coffee for third-party customers. Its activities include sourcing green coffee beans, roasting and blending coffee, packaging finished products, and distributing them through grocery, foodservice and wholesale channels.

Coffee Holding was founded in 1975 and has expanded its business through branded products, private-label production and acquisitions.