West Pharmaceutical Services, Inc. (WST) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts are broadly bullish: Fourteen analysts rate West Pharmaceutical Services a “Moderate Buy” (13 buys, one hold), with an average 1-year price target of $424.67. Recent targets range from $400 to $500.
• Quarterly results beat expectations: West reported EPS of $2.66 versus the $2.20 consensus and revenue of $874.5 million versus $827.12 million; revenue increased 8.7% year over year.
• The dividend was raised: The company increased its quarterly payout from $0.22 to $0.26 per share, equivalent to $1.04 annually and a 0.2% yield.

Shares of West Pharmaceutical Services, Inc. (NYSE:WST - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fourteen analysts that are currently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $424.67.

Several analysts have weighed in on the company. Jefferies Financial Group reiterated a "buy" rating and set a $475.00 price target on shares of West Pharmaceutical Services in a research note on Monday, November 2nd. Morgan Stanley upgraded West Pharmaceutical Services from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $365.00 to $400.00 in a research note on Tuesday, September 22nd. TD Cowen raised their price objective on West Pharmaceutical Services from $420.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, October 30th. UBS Group lifted their target price on West Pharmaceutical Services from $340.00 to $415.00 and gave the stock a "buy" rating in a report on Wednesday, September 9th. Finally, Zacks Research lowered West Pharmaceutical Services from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 12th.

Insider Activity at West Pharmaceutical Services

In other news, VP Annette Favorite sold 2,524 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $365.00, for a total value of $921,260.00. Following the sale, the vice president owned 21,818 shares in the company, valued at $7,963,570. This represents a 10.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 15,659 shares of company stock valued at $5,443,749. 0.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On West Pharmaceutical Services

Hedge funds have recently added to or reduced their stakes in the business. Bank of Nova Scotia increased its stake in shares of West Pharmaceutical Services by 337.8% during the first quarter. Bank of Nova Scotia now owns 65,323 shares of the medical instruments supplier's stock worth $16,373,000 after purchasing an additional 50,402 shares in the last quarter. Renaissance Technologies LLC raised its position in shares of West Pharmaceutical Services by 100.2% during the 1st quarter. Renaissance Technologies LLC now owns 209,660 shares of the medical instruments supplier's stock worth $52,549,000 after purchasing an additional 104,924 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in West Pharmaceutical Services by 10.2% in the 2nd quarter. Envestnet Asset Management Inc. now owns 259,536 shares of the medical instruments supplier's stock valued at $93,173,000 after buying an additional 24,015 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in West Pharmaceutical Services by 69.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 510,516 shares of the medical instruments supplier's stock valued at $127,956,000 after buying an additional 210,112 shares in the last quarter. Finally, Epoch Investment Partners Inc. lifted its stake in West Pharmaceutical Services by 7.9% in the 1st quarter. Epoch Investment Partners Inc. now owns 545,050 shares of the medical instruments supplier's stock valued at $136,611,000 after buying an additional 39,745 shares in the last quarter. 93.90% of the stock is owned by hedge funds and other institutional investors.

West Pharmaceutical Services Stock Performance

Shares of West Pharmaceutical Services stock opened at $416.34 on Friday. The company has a 50 day moving average price of $380.32 and a 200 day moving average price of $320.84. The firm has a market capitalization of $29.00 billion, a P/E ratio of 46.73, a PEG ratio of 2.50 and a beta of 1.13. The company has a quick ratio of 2.10, a current ratio of 2.82 and a debt-to-equity ratio of 0.07. West Pharmaceutical Services has a 52 week low of $223.83 and a 52 week high of $438.27.

West Pharmaceutical Services (NYSE:WST - Get Free Report) last released its earnings results on Thursday, October 29th. The medical instruments supplier reported $2.66 earnings per share for the quarter, topping the consensus estimate of $2.20 by $0.46. The company had revenue of $874.50 million for the quarter, compared to the consensus estimate of $827.12 million. West Pharmaceutical Services had a net margin of 18.81% and a return on equity of 21.78%. West Pharmaceutical Services's revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.96 EPS. Sell-side analysts expect that West Pharmaceutical Services will post 9.46 EPS for the current year.

West Pharmaceutical Services Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, November 11th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.2%. The ex-dividend date is Tuesday, November 10th. This is a positive change from West Pharmaceutical Services's previous quarterly dividend of $0.22. West Pharmaceutical Services's dividend payout ratio (DPR) is presently 11.67%.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services designs and manufactures packaging components and delivery systems used by the pharmaceutical, biotechnology, and medical device industries. Its products help contain and administer injectable medicines and include elastomeric components, such as stoppers and seals, as well as syringe components and other packaging and delivery solutions. The company also provides contract manufacturing services for medical devices and pharmaceutical delivery systems. Its customers include companies developing and producing branded, generic, and biologic medicines.

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