Westlake (NYSE:WLK) Stock Gets Price Target Reduction from JPMorgan Chase & Co.

Key Points

• JPMorgan cut Westlake’s price target from $80 to $65 while maintaining a “neutral” rating, implying roughly 4.08% upside from the stock’s reported $62.45 price.
• Analyst sentiment remains cautious: Westlake has a consensus “Hold” rating and an average price target of $82.20, with ratings from four Buys, ten Holds, and two Sells.
• Westlake shares fell 1.8% to $62.45, well below their 50-day and 200-day moving averages. The company’s latest quarterly results exceeded estimates, with adjusted EPS of $2.01 versus the $1.83 consensus and revenue of $3.27 billion.

Westlake (NYSE:WLK - Get Free Report) had its price target cut by equities researchers at JPMorgan Chase & Co. from $80.00 to $65.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a "neutral" rating on the specialty chemicals company's stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 4.08% from the stock's current price.

WLK has been the subject of a number of other reports. The Goldman Sachs Group set a $85.00 price target on Westlake in a research report on Thursday, July 16th. Wall Street Zen upgraded Westlake from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Zacks Research raised shares of Westlake from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 25th. Citigroup reiterated a "neutral" rating and issued a $67.00 target price (down from $85.00) on shares of Westlake in a research note on Monday, October 5th. Finally, Truist Financial lowered their target price on shares of Westlake from $104.00 to $90.00 and set a "buy" rating for the company in a report on Thursday, October 1st. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $82.20.

Westlake Stock Down 1.8%

WLK stock traded down $1.16 during mid-day trading on Friday, reaching $62.45. 193,501 shares of the company traded hands, compared to its average volume of 1,140,855. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55. The firm's 50 day moving average price is $71.09 and its 200 day moving average price is $84.01. The stock has a market cap of $7.98 billion, a price-to-earnings ratio of -6.53 and a beta of 0.69. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $124.23.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, topping the consensus estimate of $1.83 by $0.18. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.24 billion. During the same period in the prior year, the business posted ($1.11) earnings per share. The company's quarterly revenue was up 10.8% compared to the same quarter last year. As a group, equities research analysts predict that Westlake will post 2.83 EPS for the current fiscal year.

Insider Activity at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total value of $3,120,724.44. Following the transaction, the chairman owned 642,880 shares in the company, valued at approximately $51,610,406.40. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.40% of the company's stock.

Institutional Trading of Westlake

Several hedge funds have recently made changes to their positions in WLK. Farther Finance Advisors LLC raised its stake in Westlake by 166.2% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,608 shares of the specialty chemicals company's stock valued at $100,000 after acquiring an additional 1,004 shares during the period. Core Capital Management & Research inc. bought a new position in Westlake during the second quarter worth about $264,000. Tidal Investments LLC boosted its position in Westlake by 59.0% during the second quarter. Tidal Investments LLC now owns 76,055 shares of the specialty chemicals company's stock worth $5,552,000 after purchasing an additional 28,235 shares during the period. Engineers Gate Manager LP increased its stake in shares of Westlake by 67.8% in the second quarter. Engineers Gate Manager LP now owns 71,301 shares of the specialty chemicals company's stock worth $5,205,000 after purchasing an additional 28,802 shares in the last quarter. Finally, IFP Advisors Inc increased its stake in shares of Westlake by 58,450.0% in the second quarter. IFP Advisors Inc now owns 1,171 shares of the specialty chemicals company's stock worth $85,000 after purchasing an additional 1,169 shares in the last quarter. 28.40% of the stock is currently owned by institutional investors.

Westlake Company Profile

Westlake Corporation NYSE: WLK is a global manufacturer of performance and essential materials used in construction, infrastructure, packaging, healthcare, automotive, and consumer products. Headquartered in Houston, Texas, the company operates through businesses focused on producing chemical building blocks, polymers, and specialty materials.

Its product portfolio includes polyvinyl chloride (PVC), chlor-alkali products such as caustic soda and chlorine, polyethylene, epoxy and specialty resins, and other performance chemicals.

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