AXQ Capital LP Purchases New Holdings in Westlake Corporation $WLK

Key Points

• AXQ Capital purchased 51,437 shares of Westlake valued at approximately $3.76 million during the second quarter. Institutional investors and hedge funds collectively own 28.4% of the company.
• Westlake exceeded quarterly earnings expectations, reporting $2.01 in earnings per share and $3.27 billion in revenue, up 10.8% year over year.
• Analysts maintain a generally cautious outlook, with an average rating of Hold and a $93.92 price target. Westlake also raised its quarterly dividend to $0.533 per share, representing a 2.9% annualized yield.

AXQ Capital LP purchased a new position in Westlake Corporation (NYSE:WLK - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 51,437 shares of the specialty chemicals company's stock, valued at approximately $3,755,000.

Several other institutional investors have also added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd bought a new stake in Westlake during the 3rd quarter worth $28,000. Quarry LP bought a new position in shares of Westlake during the 4th quarter worth about $31,000. Fifth Third Bancorp boosted its holdings in Westlake by 71.3% in the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock worth $42,000 after acquiring an additional 234 shares in the last quarter. CIBC Private Wealth Group LLC bought a new position in shares of Westlake in the third quarter valued at $53,000. Finally, NewEdge Advisors LLC lifted its holdings in shares of Westlake by 49.6% in the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company's stock valued at $57,000 after purchasing an additional 247 shares in the last quarter. 28.40% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Westlake

In other Westlake news, Chairman Albert Chao sold 38,873 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $80.28, for a total value of $3,120,724.44. Following the completion of the sale, the chairman directly owned 642,880 shares in the company, valued at $51,610,406.40. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 1.40% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Mizuho cut their price objective on Westlake from $110.00 to $88.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $115.00 target price on shares of Westlake in a report on Thursday, May 7th. JPMorgan Chase & Co. upgraded shares of Westlake from an "underweight" rating to a "neutral" rating and set a $90.00 price objective on the stock in a research report on Monday, May 18th. Weiss Ratings reissued a "sell (d)" rating on shares of Westlake in a research note on Friday, July 17th. Finally, Morgan Stanley dropped their price target 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. Three equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $93.92.

Westlake Price Performance

WLK stock opened at $74.73 on Friday. The stock has a market capitalization of $9.55 billion, a price-to-earnings ratio of -7.80 and a beta of 0.63. The firm's 50-day moving average price is $75.97 and its two-hundred day moving average price is $92.23. The company has a current ratio of 2.45, a quick ratio of 1.70 and a debt-to-equity ratio of 0.55. Westlake Corporation has a 12-month low of $56.33 and a 12-month high of $124.23.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share for the quarter, topping analysts' consensus estimates of $1.83 by $0.18. The firm had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.24 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.The business's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period last year, the company earned ($1.11) EPS. As a group, equities analysts predict that Westlake Corporation will post 3.35 earnings per share for the current 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 given a dividend of $0.533 per share. This is an increase from Westlake's previous quarterly dividend of $0.53. This represents a $2.13 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, August 25th. Westlake's dividend payout ratio is presently -22.23%.

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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