Bank of New York Mellon Corp Buys Shares of 163,455 Westlake Corporation $WLK

Key Points

• Bank of New York Mellon acquired 163,455 Westlake shares worth approximately $11.9 million, while other institutions also initiated or increased positions; institutional investors now own 28.4% of the company.
• Westlake exceeded quarterly earnings expectations, reporting $2.01 EPS versus the $1.83 consensus and $3.27 billion in revenue, up 10.8% year over year.
• The company slightly raised its quarterly dividend to $0.533 per share, equivalent to a 2.9% yield. Analysts remain broadly neutral, with a consensus “Hold” rating and a $93.92 target price versus a recent share price of $74.13.

Bank of New York Mellon Corp bought a new stake in shares of Westlake Corporation (NYSE:WLK - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 163,455 shares of the specialty chemicals company's stock, valued at approximately $11,932,000. Bank of New York Mellon Corp owned approximately 0.13% of Westlake as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Focus Partners Advisor Solutions LLC bought a new position in shares of Westlake in the second quarter worth about $286,000. GSA Capital Partners LLP purchased a new stake in Westlake in the 2nd quarter worth approximately $461,000. Walleye Capital LLC bought a new stake in Westlake during the 2nd quarter worth approximately $6,048,000. Assenagon Asset Management S.A. bought a new stake in shares of Westlake during the 2nd quarter valued at $4,036,000. Finally, Bank of America Corp DE raised its position in shares of Westlake by 28.5% during the 1st quarter. Bank of America Corp DE now owns 236,986 shares of the specialty chemicals company's stock valued at $27,685,000 after purchasing an additional 52,551 shares during the period. Hedge funds and other institutional investors own 28.40% of the company's stock.

Insider Activity

In related news, Chairman Albert Chao sold 38,873 shares of the business'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 completion of the transaction, the chairman owned 642,880 shares in the company, valued at $51,610,406.40. The trade was a 5.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.40% of the company's stock.

Westlake Price Performance

Westlake stock opened at $74.13 on Wednesday. Westlake Corporation has a 52-week low of $56.33 and a 52-week high of $124.23. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55. The firm's fifty day moving average is $75.99 and its 200 day moving average is $92.57. The company has a market cap of $9.47 billion, a price-to-earnings ratio of -7.74 and a beta of 0.63.

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 the consensus estimate of $1.83 by $0.18. The company had revenue of $3.27 billion for the quarter, compared to analysts' expectations of $3.24 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.The firm's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the previous year, the firm posted ($1.11) earnings per share. Sell-side analysts forecast that Westlake Corporation will post 3.35 EPS for the current fiscal year.

Westlake Increases Dividend

The company 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 2.9%. The ex-dividend date is Tuesday, August 25th. This is a positive change from Westlake's previous quarterly dividend of $0.53. Westlake's payout ratio is currently -22.23%.

Analyst Ratings Changes

WLK has been the topic of several recent analyst reports. Zacks Research raised Westlake from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 25th. UBS Group reaffirmed a "buy" rating and set a $117.00 price objective (down from $130.00) on shares of Westlake in a report on Friday, June 5th. Weiss Ratings reiterated a "sell (d)" rating on shares of Westlake in a research report on Friday, July 17th. Royal Bank Of Canada restated an "outperform" rating and set a $95.00 target price (up from $89.00) on shares of Westlake in a research report on Thursday, August 6th. Finally, Wells Fargo & Company cut 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 note on Wednesday, August 5th. Three equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Westlake currently has a consensus rating of "Hold" and a consensus target price of $93.92.

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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