Aberdeen Group plc Acquires 1,400,682 Shares of West Pharmaceutical Services, Inc. $WST

Key Points

• Aberdeen Group sharply increased its West Pharmaceutical Services stake, adding 1.40 million shares in the third quarter to hold about 1.46 million shares, worth roughly $542 million.
• West reported quarterly earnings of $2.66 per share and revenue of $874.5 million, beating analyst estimates; revenue rose 8.7% year over year. The company also raised its quarterly dividend from $0.22 to $0.26 per share.
• Analyst sentiment was broadly positive: 13 analysts rated the stock Buy and one Hold, with a consensus “Moderate Buy” rating and an average price target of $424.67.

Aberdeen Group plc raised its holdings in shares of West Pharmaceutical Services, Inc. (NYSE:WST - Free Report) by 2,283.1% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,462,033 shares of the medical instruments supplier's stock after acquiring an additional 1,400,682 shares during the quarter. West Pharmaceutical Services comprises approximately 0.6% of Aberdeen Group plc's portfolio, making the stock its 29th biggest holding. Aberdeen Group plc owned approximately 2.10% of West Pharmaceutical Services worth $542,063,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Evergreen Capital Management LLC grew its holdings in West Pharmaceutical Services by 2.5% during the 3rd quarter. Evergreen Capital Management LLC now owns 1,131 shares of the medical instruments supplier's stock valued at $419,000 after buying an additional 28 shares in the last quarter. Greenleaf Trust increased its holdings in shares of West Pharmaceutical Services by 4.1% in the second quarter. Greenleaf Trust now owns 843 shares of the medical instruments supplier's stock worth $303,000 after purchasing an additional 33 shares during the period. Wealth Alliance LLC raised its position in shares of West Pharmaceutical Services by 3.8% in the first quarter. Wealth Alliance LLC now owns 945 shares of the medical instruments supplier's stock worth $237,000 after buying an additional 35 shares in the last quarter. 55 North Private Wealth LLC lifted its stake in West Pharmaceutical Services by 5.4% during the third quarter. 55 North Private Wealth LLC now owns 708 shares of the medical instruments supplier's stock worth $262,000 after purchasing an additional 36 shares during the last quarter. Finally, D.A. Davidson & CO. grew its position in West Pharmaceutical Services by 4.1% during the third quarter. D.A. Davidson & CO. now owns 909 shares of the medical instruments supplier's stock valued at $337,000 after acquiring an additional 36 shares during the last quarter. Institutional investors own 93.90% of the company's stock.

West Pharmaceutical Services Stock Up 1.2%

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

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

West Pharmaceutical Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, November 11th will be given a $0.26 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $1.04 annualized dividend and a yield of 0.2%. This is an increase from West Pharmaceutical Services's previous quarterly dividend of $0.22. West Pharmaceutical Services's dividend payout ratio is presently 11.67%.

Insiders Place Their Bets

In other West Pharmaceutical Services news, VP Annette Favorite sold 2,524 shares of the stock in a transaction dated Tuesday, September 15th. The stock was 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 of the company's stock, valued at $7,963,570. This trade represents a 10.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 worth $5,443,749. 0.60% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research firms recently issued reports on WST. TD Cowen increased their price target on shares of West Pharmaceutical Services from $420.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, October 30th. Jefferies Financial Group restated a "buy" rating and set a $475.00 target price on shares of West Pharmaceutical Services in a research note on Monday, November 2nd. Wall Street Zen raised shares of West Pharmaceutical Services from a "hold" rating to a "buy" rating in a report on Sunday, November 1st. Citigroup upped their price objective on West Pharmaceutical Services from $412.00 to $494.00 and gave the company a "buy" rating in a research report on Friday, October 30th. Finally, Zacks Research downgraded shares of West Pharmaceutical Services from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Thirteen research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, West Pharmaceutical Services currently has a consensus rating of "Moderate Buy" and an average target price of $424.67.

West Pharmaceutical Services 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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