Fractal Investments LLC Grows Stock Position in Western Midstream Partners, LP $WES

Key Points

• Fractal Investments LLC increased its stake in Western Midstream Partners by 7.5% in Q4 to 1,577,806 shares (about $62.32M), making WES its 4th largest holding and ~8.7% of the fund's portfolio.
• Western Midstream missed Q4 estimates (EPS $0.47 vs. $0.91 consensus; revenue $1.03B vs. $1.06B) but pays a high quarterly dividend of $0.91 (annual $3.64) for a ~9.0% yield with a payout ratio of 121.33%, indicating potential payout strain.
• Insider trades were mixed (SVP sold 5,879 shares; a director bought 1,250), institutional ownership is high at 84.82%, and analysts hold a consensus "Hold" rating with a $41.71 price target while the stock trades near $40.51.

Fractal Investments LLC boosted its position in Western Midstream Partners, LP (NYSE:WES - Free Report) by 7.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,577,806 shares of the pipeline company's stock after acquiring an additional 110,300 shares during the quarter. Western Midstream Partners accounts for approximately 8.7% of Fractal Investments LLC's portfolio, making the stock its 4th largest holding. Fractal Investments LLC owned about 0.39% of Western Midstream Partners worth $62,323,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Whittier Trust Co. of Nevada Inc. boosted its holdings in shares of Western Midstream Partners by 0.9% in the 4th quarter. Whittier Trust Co. of Nevada Inc. now owns 30,784 shares of the pipeline company's stock worth $1,218,000 after purchasing an additional 284 shares in the last quarter. Whittier Trust Co. purchased a new position in shares of Western Midstream Partners in the 4th quarter worth about $42,000. Farther Finance Advisors LLC boosted its holdings in shares of Western Midstream Partners by 72.9% in the 4th quarter. Farther Finance Advisors LLC now owns 2,858 shares of the pipeline company's stock worth $113,000 after purchasing an additional 1,205 shares in the last quarter. Avion Wealth boosted its holdings in shares of Western Midstream Partners by 216.7% in the 4th quarter. Avion Wealth now owns 1,900 shares of the pipeline company's stock worth $75,000 after purchasing an additional 1,300 shares in the last quarter. Finally, Eagle Bay Advisors LLC purchased a new position in shares of Western Midstream Partners in the 4th quarter worth about $27,000. 84.82% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Western Midstream Partners

In other news, SVP Christopher B. Dial sold 5,879 shares of the business's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $42.35, for a total value of $248,975.65. Following the completion of the sale, the senior vice president owned 185,011 shares of the company's stock, valued at approximately $7,835,215.85. The trade was a 3.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Robert G. Phillips bought 1,250 shares of the stock in a transaction dated Wednesday, March 11th. The stock was bought at an average cost of $40.19 per share, with a total value of $50,237.50. Following the purchase, the director owned 5,296 shares in the company, valued at $212,846.24. The trade was a 30.89% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.04% of the company's stock.

Western Midstream Partners Trading Down 0.8%

NYSE WES opened at $40.51 on Friday. Western Midstream Partners, LP has a 1-year low of $35.25 and a 1-year high of $44.74. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.97. The stock has a 50-day moving average of $41.52 and a 200-day moving average of $40.14. The firm has a market cap of $15.95 billion, a PE ratio of 13.50 and a beta of 0.73.

Western Midstream Partners (NYSE:WES - Get Free Report) last released its earnings results on Wednesday, February 18th. The pipeline company reported $0.47 earnings per share for the quarter, missing analysts' consensus estimates of $0.91 by ($0.44). Western Midstream Partners had a net margin of 30.52% and a return on equity of 33.14%. The company had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.06 billion. During the same period last year, the firm posted $0.85 EPS. The company's revenue was up 11.1% on a year-over-year basis. As a group, sell-side analysts forecast that Western Midstream Partners, LP will post 4.02 EPS for the current year.

Western Midstream Partners Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Monday, February 2nd were paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 9.0%. The ex-dividend date of this dividend was Monday, February 2nd. Western Midstream Partners's payout ratio is 121.33%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on WES shares. JPMorgan Chase & Co. cut their price objective on Western Midstream Partners from $44.00 to $43.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Wells Fargo & Company upped their price objective on Western Midstream Partners from $39.00 to $41.00 and gave the stock an "equal weight" rating in a report on Friday, March 13th. Wall Street Zen cut Western Midstream Partners from a "buy" rating to a "hold" rating in a report on Saturday, December 27th. Finally, Stifel Nicolaus cut their price objective on Western Midstream Partners from $43.00 to $42.00 and set a "hold" rating for the company in a report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $41.71.

Western Midstream Partners Profile

Western Midstream Partners, LP NYSE: WES is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership's primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.

The company's asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.

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