190,180 Shares in Westlake Corporation $WLK Acquired by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management initiated a new position in Westlake, buying 190,180 shares worth about $14.1 million in the fourth quarter, giving it roughly 0.15% ownership.
• Westlake reported weaker-than-expected quarterly results, with EPS of -$0.77 and revenue of $2.65 billion, both missing analyst estimates.
• The company also announced a quarterly dividend of $0.53 per share, payable June 11, which annualizes to $2.12 and implies a 2.4% yield.

Diamond Hill Capital Management Inc. acquired a new position in shares of Westlake Corporation (NYSE:WLK - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 190,180 shares of the specialty chemicals company's stock, valued at approximately $14,062,000. Diamond Hill Capital Management Inc. owned approximately 0.15% of Westlake as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Westlake by 13.9% in the fourth quarter. Vanguard Group Inc. now owns 3,917,329 shares of the specialty chemicals company's stock valued at $289,647,000 after purchasing an additional 477,698 shares during the period. Dimensional Fund Advisors LP raised its position in Westlake by 2.0% in the third quarter. Dimensional Fund Advisors LP now owns 1,300,240 shares of the specialty chemicals company's stock valued at $100,195,000 after purchasing an additional 25,071 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Westlake by 40.7% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 917,273 shares of the specialty chemicals company's stock valued at $70,685,000 after purchasing an additional 265,447 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Westlake by 1.4% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 855,976 shares of the specialty chemicals company's stock valued at $65,961,000 after purchasing an additional 11,846 shares during the period. Finally, Holocene Advisors LP raised its position in Westlake by 440.1% in the third quarter. Holocene Advisors LP now owns 854,184 shares of the specialty chemicals company's stock valued at $65,823,000 after purchasing an additional 696,029 shares during the period. Hedge funds and other institutional investors own 28.40% of the company's stock.

Insider Activity

In related news, CFO Mark Steven Bender sold 17,409 shares of the business's stock in a transaction on Friday, February 27th. The stock was sold at an average price of $100.92, for a total value of $1,756,916.28. Following the sale, the chief financial officer owned 44,433 shares in the company, valued at approximately $4,484,178.36. The trade was a 28.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.40% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Morgan Stanley set a $115.00 target price on Westlake and gave the company an "equal weight" rating in a research report on Tuesday, May 5th. Truist Financial lifted their target price on Westlake from $117.00 to $127.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. Royal Bank Of Canada reduced their target price on Westlake from $145.00 to $130.00 and set an "outperform" rating on the stock in a research report on Monday, May 11th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $115.00 target price on shares of Westlake in a research report on Thursday, May 7th. Finally, Wells Fargo & Company reduced their target price on Westlake from $125.00 to $110.00 and set an "equal weight" rating on the stock in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Westlake currently has an average rating of "Hold" and a consensus price target of $110.43.

Westlake Price Performance

WLK stock opened at $88.63 on Friday. The company has a current ratio of 2.17, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $11.35 billion, a PE ratio of -6.98 and a beta of 0.67. Westlake Corporation has a 12-month low of $56.33 and a 12-month high of $124.23. The business's fifty day moving average price is $108.76 and its 200 day moving average price is $90.60.

Westlake (NYSE:WLK - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The specialty chemicals company reported ($0.77) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.67). The firm had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.79 billion. Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. Westlake's quarterly revenue was down 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.31) EPS. On average, sell-side analysts anticipate that Westlake Corporation will post 3.73 EPS for the current year.

Westlake Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Wednesday, May 27th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Wednesday, May 27th. Westlake's payout ratio is currently -16.69%.

About Westlake

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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