California Public Employees Retirement System Trims Position in Westlake Corporation $WLK

Key Points

• CalPERS cut its Westlake stake by 46.5% in the first quarter, selling 21,760 shares and retaining 25,000 shares valued at approximately $2.92 million. Institutional investors collectively own 28.4% of WLK.
• Westlake reported weaker-than-expected quarterly results, with an EPS loss of $0.77 versus the $0.10 expected and revenue of $2.65 billion, down 6.8% year over year.
• The stock traded near $74, while analysts maintained a consensus “Hold” rating and an average price target of $97.64. Westlake continues to pay a quarterly dividend of $0.53, yielding about 2.9% annually.

California Public Employees Retirement System trimmed its position in shares of Westlake Corporation (NYSE:WLK - Free Report) by 46.5% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 25,000 shares of the specialty chemicals company's stock after selling 21,760 shares during the period. California Public Employees Retirement System's holdings in Westlake were worth $2,920,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Caitong International Asset Management Co. Ltd bought a new position in Westlake in the 3rd quarter worth $28,000. Quarry LP bought a new stake in Westlake during the fourth quarter valued at about $31,000. Fifth Third Bancorp raised its holdings in Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock valued at $42,000 after acquiring an additional 234 shares during the period. CIBC Private Wealth Group LLC bought a new stake in Westlake during the third quarter valued at about $53,000. Finally, NewEdge Advisors LLC lifted its position 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 acquiring an additional 247 shares in the last quarter. Hedge funds and other institutional investors own 28.40% of the company's stock.

Westlake Trading Up 0.3%

WLK opened at $74.02 on Monday. The stock has a 50-day moving average of $81.18 and a 200 day moving average of $94.58. The company has a current ratio of 2.17, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. Westlake Corporation has a 12 month low of $56.33 and a 12 month high of $124.23. The firm has a market cap of $9.48 billion, a P/E ratio of -5.83 and a beta of 0.62.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The specialty chemicals company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.67). The company had revenue of $2.65 billion for 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%. The company's revenue for the quarter was down 6.8% on a year-over-year basis. During the same quarter last year, the company earned ($0.31) earnings per share. As a group, research analysts forecast that Westlake Corporation will post 2.97 EPS for the current year.

Westlake Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Wednesday, May 27th were given a $0.53 dividend. The ex-dividend date was Wednesday, May 27th. This represents a $2.12 dividend on an annualized basis and a yield of 2.9%. Westlake's dividend payout ratio (DPR) is currently -16.69%.

Analyst Upgrades and Downgrades

WLK has been the subject of a number of recent analyst reports. Wells Fargo & Company cut their target price on Westlake from $125.00 to $110.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 6th. Wall Street Zen downgraded Westlake from a "hold" rating to a "sell" rating in a research note on Sunday, May 3rd. BMO Capital Markets reissued a "market perform" rating and issued a $96.00 price target on shares of Westlake in a report on Monday, July 6th. JPMorgan Chase & Co. upgraded Westlake from an "underweight" rating to a "neutral" rating and set a $90.00 price target for the company in a research note on Monday, May 18th. Finally, Truist Financial cut their price objective on shares of Westlake from $127.00 to $104.00 and set a "buy" rating for the company in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $97.64.

Westlake Company Profile

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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