Coffee Holding stock jumps on $2.5M buyback program

Coffee Holding Co Inc (NASDAQ:JVA) saw a 6% jump in its shares on Wednesday following the announcement of a $2.5 million share buyback program by the company's board. The company has the flexibility to repurchase shares either on the open market or through private negotiations, contingent on market conditions and stock price. Coffee Holding intends to finance the program using existing cash reserves and future cash flow from operations.

The scope and frequency of these repurchases will depend on various factors, including market conditions, and the program could be discontinued or paused at any time. The company's management, led by President and CEO Andrew Gordon, believes the current stock price does not fully reflect the company's strong underlying fundamentals.

Gordon also highlighted the company's improved financial performance over recent quarters, attributing it to efforts to enhance gross margins and eliminate operational redundancies. Coffee Holding, established in 1971, is an integrated wholesale coffee roaster and dealer that markets coffee products across different price segments.

The company sells eight private label brands and also roasts and blends coffees for large-scale wholesalers and retailers. Moreover, Coffee Holding imports green coffee beans for resale to regional roasters and coffee shops in the United States and Canada.