Westlake Corporation (NYSE:WLK) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Westlake has a “Hold” consensus rating from 15 analysts: 10 holds, three buys and two sells. The average 12-month price target is $93.92, though several firms recently reduced their targets to between $85 and $92.
• Westlake reported quarterly earnings of $2.01 per share, beating estimates of $1.83, while revenue rose 10.8% year over year to $3.27 billion. Analysts expect full-year earnings of approximately $3.43 per share.
• The company increased its quarterly dividend to $0.533 per share, equivalent to a $2.13 annualized payout and a 2.8% yield. Shares opened at $76.51, well below their 12-month high of $124.23, while Chairman Albert Chao recently sold 38,873 shares.

Westlake Corporation (NYSE:WLK - Get Free Report) has earned an average recommendation of "Hold" from the fifteen ratings firms that are currently covering the company, Marketbeat reports. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have issued a buy rating on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $93.9231.

Several equities research analysts have recently commented on WLK shares. Wells Fargo & Company decreased their target price on shares of Westlake from $110.00 to $89.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 5th. Mizuho dropped their price target on shares of Westlake from $110.00 to $88.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 1st. Citigroup cut their price target on Westlake from $95.00 to $85.00 and set a "neutral" rating for the company in a research note on Wednesday, June 24th. Zacks Research lowered Westlake from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 21st. Finally, Morgan Stanley lowered their price objective on Westlake from $106.00 to $92.00 and set an "equal weight" rating for the company in a research note on Thursday, July 2nd.

Insiders Place Their Bets

In other Westlake news, Chairman Albert Chao sold 38,873 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total transaction of $3,120,724.44. Following the transaction, the chairman directly owned 642,880 shares in the company, valued at approximately $51,610,406.40. This trade represents a 5.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd purchased a new stake in Westlake in the 3rd quarter valued at about $28,000. Quarry LP bought a new position in shares of Westlake in the fourth quarter valued at approximately $31,000. Fifth Third Bancorp increased its position in shares of Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock valued at $42,000 after acquiring an additional 234 shares during the last quarter. CIBC Private Wealth Group LLC bought a new stake in Westlake during the third quarter worth $53,000. Finally, NewEdge Advisors LLC lifted its holdings in Westlake by 49.6% during the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company's stock worth $57,000 after acquiring an additional 247 shares during the period. 28.40% of the stock is currently owned by hedge funds and other institutional investors.

Westlake Stock Performance

NYSE WLK opened at $76.51 on Tuesday. The company has a fifty day simple moving average of $76.67 and a 200 day simple moving average of $93.49. Westlake has a 12-month low of $56.33 and a 12-month high of $124.23. The company has a current ratio of 2.45, a quick ratio of 1.70 and a debt-to-equity ratio of 0.55. The company has a market cap of $9.78 billion, a P/E ratio of -7.99 and a beta of 0.63.

Westlake (NYSE:WLK - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, beating analysts' consensus estimates of $1.83 by $0.18. Westlake had a negative net margin of 10.94% and a positive return on equity of 0.93%. The business had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.24 billion. During the same quarter in the previous year, the business posted ($1.11) EPS. Westlake's quarterly revenue was up 10.8% on a year-over-year basis. Sell-side analysts predict that Westlake will post 3.43 earnings per share for the current fiscal year.

Westlake Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Tuesday, August 25th will be issued a dividend of $0.533 per share. This represents a $2.13 annualized dividend and a yield of 2.8%. This is an increase from Westlake's previous quarterly dividend of $0.53. The ex-dividend date is Tuesday, August 25th. Westlake's dividend payout ratio is currently -22.13%.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company's core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.

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