Western Midstream Partners (NYSE:WES) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Western Midstream Partners from “strong buy” to “hold.” Analyst consensus is also “hold,” with an average price target of $49.89.
• The company reported quarterly EPS of $0.78, below the $0.92 consensus estimate, while revenue of $1.19 billion matched expectations and rose 25.4% year over year.
• WES shares traded at $39.84, near the reported 1-year low of $37.75.

Western Midstream Partners (NYSE:WES - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other equities analysts also recently issued reports on the company. UBS Group increased their target price on Western Midstream Partners from $45.00 to $48.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. Truist Financial initiated coverage on Western Midstream Partners in a research note on Thursday, September 17th. They issued a "buy" rating and a $55.00 price target on the stock. Wall Street Zen lowered shares of Western Midstream Partners from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Morgan Stanley lowered their price target on shares of Western Midstream Partners from $55.00 to $52.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 21st. Finally, Citigroup increased their price target on shares of Western Midstream Partners from $42.00 to $45.00 and gave the company a "neutral" rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $49.89.

Western Midstream Partners Stock Performance

Shares of Western Midstream Partners stock traded down $0.01 on Thursday, reaching $39.84. 1,803,735 shares of the stock were exchanged, compared to its average volume of 1,306,471. Western Midstream Partners has a 1-year low of $37.75 and a 1-year high of $50.07. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 2.02. The business has a fifty day moving average price of $45.84 and a two-hundred day moving average price of $44.16. The firm has a market capitalization of $16.46 billion, a PE ratio of 12.89, a PEG ratio of 1.19 and a beta of 0.75.

Western Midstream Partners (NYSE:WES - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The pipeline company reported $0.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.14). The firm had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.19 billion. Western Midstream Partners had a return on equity of 33.13% and a net margin of 29.44%. The company's revenue for the quarter was up 25.4% on a year-over-year basis. During the same period in the prior year, the company earned $0.87 earnings per share. As a group, research analysts anticipate that Western Midstream Partners will post 3.67 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Frederick Forthuber acquired 5,140 shares of Western Midstream Partners stock in a transaction dated Wednesday, August 12th. The shares were acquired at an average cost of $48.62 per share, for a total transaction of $249,906.80. Following the completion of the transaction, the director directly owned 5,140 shares of the company's stock, valued at $249,906.80. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 0.04% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Moors & Cabot Inc. raised its stake in shares of Western Midstream Partners by 3.0% during the third quarter. Moors & Cabot Inc. now owns 27,377 shares of the pipeline company's stock valued at $1,215,000 after purchasing an additional 800 shares during the period. First Trust Capital Management L.P. grew its holdings in Western Midstream Partners by 124.2% during the 3rd quarter. First Trust Capital Management L.P. now owns 12,604 shares of the pipeline company's stock valued at $553,000 after purchasing an additional 6,982 shares in the last quarter. Fifth Third Bancorp grew its holdings in Western Midstream Partners by 6.0% during the 3rd quarter. Fifth Third Bancorp now owns 7,019 shares of the pipeline company's stock valued at $311,000 after purchasing an additional 399 shares in the last quarter. Maryland State Retirement & Pension System increased its stake in Western Midstream Partners by 3.8% during the 3rd quarter. Maryland State Retirement & Pension System now owns 224,459 shares of the pipeline company's stock worth $9,959,000 after buying an additional 8,208 shares during the period. Finally, Alps Advisors Inc. increased its stake in Western Midstream Partners by 2.0% during the 3rd quarter. Alps Advisors Inc. now owns 37,364,470 shares of the pipeline company's stock worth $1,657,862,000 after buying an additional 734,870 shares during the period. 84.82% of the stock is owned by hedge funds and other institutional investors.

About Western Midstream Partners

Western Midstream Partners, L.P. NYSE: WES is a master limited partnership that owns and operates midstream energy infrastructure in the United States. The company provides gathering, processing, transportation, storage and treating services for natural gas, crude oil, natural gas liquids and produced water.

Western Midstream's assets include gathering systems, processing plants, pipelines, storage facilities and water-handling infrastructure. These facilities connect oil and gas producers with downstream markets and are generally supported by long-term commercial arrangements.

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