West Pharmaceutical Services, Inc. (NYSE:WST) Raises Dividend to $0.26 Per Share

Key Points

• West Pharmaceutical Services raised its quarterly dividend 18.2% to $0.26 per share, payable November 18 to shareholders of record November 11. The annualized dividend is $1.04, yielding approximately 0.3%.
• The dividend appears well covered, with a current payout ratio of 12.4%; analysts expect next year’s earnings of $9.90 per share, implying a projected payout ratio of 8.9%.
• West reported quarterly earnings of $2.37 per share, exceeding estimates of $2.08, while revenue rose 13.8% year over year to $872.3 million. Institutional investors own 93.9% of the company, though insiders sold shares in the past three months.

West Pharmaceutical Services, Inc. (NYSE:WST - Get Free Report) declared a quarterly dividend on Monday, October 19th. Investors of record on Wednesday, November 11th will be given a dividend of $0.26 per share by the medical instruments supplier on Wednesday, November 18th. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Tuesday, November 10th. This is a 18.2% increase from West Pharmaceutical Services's previous quarterly dividend of $0.22.

West Pharmaceutical Services has raised its dividend by an average of 0.1% per year over the last three years. West Pharmaceutical Services has a dividend payout ratio of 12.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect West Pharmaceutical Services to earn $9.90 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 8.9%.

West Pharmaceutical Services Stock Down 0.1%

West Pharmaceutical Services stock opened at $383.78 on Tuesday. The company has a current ratio of 2.82, a quick ratio of 2.12 and a debt-to-equity ratio of 0.07. West Pharmaceutical Services has a 1-year low of $223.83 and a 1-year high of $387.01. The company has a fifty day simple moving average of $358.63 and a 200 day simple moving average of $333.88. The company has a market cap of $27.01 billion, a P/E ratio of 49.14, a price-to-earnings-growth ratio of 2.69 and a beta of 1.13.

West Pharmaceutical Services (NYSE:WST - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The medical instruments supplier reported $2.37 EPS for the quarter, topping the consensus estimate of $2.08 by $0.29. The firm had revenue of $872.30 million for the quarter, compared to analysts' expectations of $839.98 million. West Pharmaceutical Services had a net margin of 16.98% and a return on equity of 20.11%. The company's revenue for the quarter was up 13.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.84 EPS. West Pharmaceutical Services has set its Q3 2026 guidance at 2.140-2.240 EPS and its FY 2026 guidance at 8.850-9.050 EPS. Research analysts anticipate that West Pharmaceutical Services will post 8.93 earnings per share for the current fiscal year.

Insider Buying and Selling

In other West Pharmaceutical Services news, VP Annette Favorite sold 8,135 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $340.81, for a total transaction of $2,772,489.35. Following the transaction, the vice president owned 16,845 shares of the company's stock, valued at $5,740,944.45. The trade was a 32.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 15,659 shares of company stock worth $5,443,749 in the last three months. Company insiders own 0.60% of the company's stock.

Institutional Trading of West Pharmaceutical Services

A number of hedge funds have recently made changes to their positions in WST. BlackRock Inc. bought a new stake in shares of West Pharmaceutical Services during the 2nd quarter worth approximately $2,387,990,000. Bank of New York Mellon Corp acquired a new stake in shares of West Pharmaceutical Services during the 2nd quarter worth approximately $733,733,000. Generation Investment Management LLP acquired a new stake in shares of West Pharmaceutical Services during the 2nd quarter worth approximately $728,168,000. Findlay Park Partners LLP bought a new position in West Pharmaceutical Services in the second quarter valued at approximately $214,196,000. Finally, Legal & General Group Plc bought a new position in West Pharmaceutical Services in the second quarter valued at approximately $176,138,000. 93.90% of the stock is owned by institutional investors and hedge funds.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc develops and manufactures components and delivery systems used in the administration and packaging of injectable medicines and other healthcare products. Its offerings include elastomer closures, seals, syringe components, drug-delivery systems, and other specialized packaging components designed to support the safety, quality, and performance of pharmaceutical products.

The company also provides contract-manufacturing services for pharmaceutical, biotechnology, and medical-device customers.

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