Corient Private Wealth LP Sells 26,828 Shares of Westlake Corporation $WLK

Key Points

• Institutional selling increased: Corient Private Wealth cut its Westlake position by 76.7% in the second quarter, selling 26,828 shares and retaining 8,143 shares worth approximately $594,000. Chairman Albert Chao also sold 38,873 shares for about $3.12 million.
• Analyst sentiment remains cautious: Westlake has a consensus rating of “Hold” with an average price target of $92.43, while the stock recently opened at $63.48 and remains near its one-year low of $56.33.
• Restructuring creates near-term pressure: The planned closure of the Cologne, Germany, PVC plant is intended to improve the company’s European cost structure but is expected to generate roughly $205 million in charges amid weaker chlorovinyls market conditions.

Corient Private Wealth LP decreased its position in Westlake Corporation (NYSE:WLK - Free Report) by 76.7% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 8,143 shares of the specialty chemicals company's stock after selling 26,828 shares during the quarter. Corient Private Wealth LP's holdings in Westlake were worth $594,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. State of Michigan Retirement System lifted its position in Westlake by 1.3% during the 1st quarter. State of Michigan Retirement System now owns 8,000 shares of the specialty chemicals company's stock worth $935,000 after acquiring an additional 100 shares during the last quarter. PNC Financial Services Group Inc. grew its position in shares of Westlake by 14.0% in the first quarter. PNC Financial Services Group Inc. now owns 1,522 shares of the specialty chemicals company's stock valued at $178,000 after purchasing an additional 187 shares during the last quarter. Oregon Public Employees Retirement Fund increased its stake in shares of Westlake by 3.0% in the first quarter. Oregon Public Employees Retirement Fund now owns 6,868 shares of the specialty chemicals company's stock worth $802,000 after purchasing an additional 200 shares during the period. Parallel Advisors LLC increased its stake in shares of Westlake by 133.8% in the first quarter. Parallel Advisors LLC now owns 830 shares of the specialty chemicals company's stock worth $97,000 after purchasing an additional 475 shares during the period. Finally, Rockefeller Capital Management L.P. lifted its position in shares of Westlake by 219.4% during the 4th quarter. Rockefeller Capital Management L.P. now owns 955 shares of the specialty chemicals company's stock worth $71,000 after purchasing an additional 656 shares during the last quarter. 28.40% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Westlake

In other news, Chairman Albert Chao sold 38,873 shares of Westlake stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $80.28, for a total transaction of $3,120,724.44. Following the sale, the chairman directly owned 642,880 shares in the company, valued at approximately $51,610,406.40. The trade was a 5.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.40% of the company's stock.

Analysts Set New Price Targets

Several analysts recently weighed in on WLK shares. Wall Street Zen upgraded Westlake from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. UBS Group set a $98.00 price target on Westlake and gave the stock a "buy" rating in a research report on Friday. BMO Capital Markets reiterated a "market perform" rating and set a $96.00 price target on shares of Westlake in a report on Monday, July 6th. Truist Financial reduced their price objective on Westlake from $127.00 to $104.00 and set a "buy" rating for the company in a research report on Monday, July 20th. Finally, Zacks Research raised Westlake from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 25th. Four investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Westlake currently has a consensus rating of "Hold" and a consensus target price of $92.43.

Key Headlines Impacting Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Longer-term cost optimization: Westlake plans to close its PVC plant in Cologne, Germany, during the first quarter. Management says the move will optimize its European chlorovinyls footprint and improve profitability in challenging market conditions. Westlake to Optimize European Chlorovinyls Footprint with Closure of Cologne PVC Plant
• Positive Sentiment: Building-products distribution expansion: Westlake Royal is expanding its relationship with BlueLinx, becoming its sole PVC trim supplier and broadening distribution of Kleer PVC Trim across key U.S. markets. The arrangement could support sales and channel reach in the building-products segment. Westlake Royal Expands Distribution Partnership With BlueLinx
• Neutral Sentiment: New product introduction: Westlake Royal launched four Mid-America gable vents designed to provide easier installation and improved ventilation. The product expansion is strategically positive but is unlikely to materially affect near-term earnings. New Mid-America Gable Vents From Westlake Royal Building Products
• Negative Sentiment: Large restructuring charge: Closing the Cologne facility is expected to generate approximately $205 million in charges, creating a significant near-term hit to reported results and cash costs. Westlake to Close Cologne PVC Plant and Record $205 Million in Charges
• Negative Sentiment: Weaker third-quarter expectations: Westlake warned that third-quarter performance would be weaker, reinforcing investor concerns about soft chlorovinyls market conditions. The warning, combined with the plant closure and restructuring costs, is the primary reason the stock has decreased. Westlake Warns of Weaker Q3, Closes German PVC Plant

Westlake Stock Performance

WLK opened at $63.48 on Wednesday. The stock's 50 day simple moving average is $73.88 and its 200-day simple moving average is $88.16. The company has a current ratio of 2.45, a quick ratio of 1.70 and a debt-to-equity ratio of 0.55. The stock has a market cap of $8.11 billion, a PE ratio of -6.63 and a beta of 0.63. Westlake Corporation has a 1 year low of $56.33 and a 1 year high of $124.23.

Westlake (NYSE:WLK - Get Free Report) last issued its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, topping the consensus estimate of $1.83 by $0.18. The firm had revenue of $3.27 billion during 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%.Westlake's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period last year, the business earned ($1.11) earnings per share. Sell-side analysts forecast that Westlake Corporation will post 3.33 EPS for the current year.

Westlake Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.5330 per share. This represents a $2.13 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend was Tuesday, August 25th. This is a positive change from Westlake's previous quarterly dividend of $0.53. Westlake's payout ratio is -22.23%.

About Westlake

Westlake Corporation is a global manufacturer of performance and essential materials headquartered in Houston, Texas. The company produces chemicals, polymers and building products used in construction, infrastructure, packaging, healthcare, consumer goods and other industrial applications.

Its Performance and Essential Materials businesses manufacture products such as chlor-alkali chemicals, vinyl chloride monomer, polyvinyl chloride (PVC), polyethylene, epoxy resins and related specialty materials.

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