Coffee Holding stock jumps on $2.5M buyback program

Investing.com -- Coffee Holding Co Inc (NASDAQ: JVA) shares rose 6% Wednesday after the company announced its board approved a share repurchase program authorizing up to $2.5 million in buybacks of its common stock.

The company said it may repurchase shares from time to time on the open market and through privately negotiated transactions, subject to market conditions and share price. Coffee Holding plans to fund the program with available cash and future cash flow from operations.

The timing and amount of repurchases will depend on market conditions and other factors, and the program may be discontinued or suspended at any time. Repurchases will comply with Securities and Exchange Commission rules and may be made in part under a Rule 10b5-1 plan.

"As a company, we believe that our current stock price does not truly account for the positive underlying fundamentals that currently exist at this time," commented Andrew Gordon, President and CEO of Coffee Holding Company.

Gordon added that the company's balance sheet remains strong and results have improved over recent quarters as the company focused on improving gross margins and eliminating operational redundancies.

Founded in 1971, Coffee Holding is an integrated wholesale coffee roaster and dealer that offers coffee products across various consumer price points. The company sells eight proprietary brands and also roasts and blends coffees for major wholesalers and retailers. Additionally, Coffee Holding imports green coffee beans for resale to regional roasters and coffee shops in the United States and Canada.

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