Legal & General Group Plc Makes New Investment in Westlake Corporation $WLK

Key Points

• Legal & General Group acquired 50,025 shares of Westlake Corporation worth approximately $3.65 million in the second quarter. Institutional investors collectively own 28.4% of Westlake’s stock.
• Westlake exceeded quarterly earnings expectations, reporting $2.01 in EPS versus the $1.83 consensus estimate and $3.27 billion in revenue, up 10.8% year over year.
• The company increased its quarterly dividend to $0.533 per share, representing an annualized dividend of $2.13 and a 2.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $93.92.

Legal & General Group Plc acquired a new position in Westlake Corporation (NYSE:WLK - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 50,025 shares of the specialty chemicals company's stock, valued at approximately $3,652,000.

A number of other hedge funds have also made changes to their positions in the business. Caitong International Asset Management Co. Ltd purchased a new stake in Westlake during the 3rd quarter worth $28,000. Quarry LP purchased a new position in Westlake in the fourth quarter valued at about $31,000. Fifth Third Bancorp raised its position in Westlake by 71.3% in the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock valued at $42,000 after purchasing an additional 234 shares during the period. CIBC Private Wealth Group LLC acquired a new position in shares of Westlake during the third quarter worth about $53,000. Finally, NewEdge Advisors LLC lifted its position in shares of Westlake by 49.6% during the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company's stock worth $57,000 after purchasing an additional 247 shares in the last quarter. Hedge funds and other institutional investors own 28.40% of the company's stock.

Westlake Price Performance

Shares of WLK stock opened at $74.74 on Friday. Westlake Corporation has a 12 month low of $56.33 and a 12 month high of $124.23. The company has a market capitalization of $9.55 billion, a P/E ratio of -7.80 and a beta of 0.63. The stock has a 50 day moving average of $75.93 and a two-hundred day moving average of $92.11. 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 (NYSE:WLK - Get Free Report) last announced 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 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 business's revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the business earned ($1.11) earnings per share. As a group, equities analysts expect that Westlake Corporation will post 3.35 EPS for the current year.

Westlake Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th will be given a dividend of $0.533 per share. This represents a $2.13 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Tuesday, August 25th. This is a boost from Westlake's previous quarterly dividend of $0.53. Westlake's dividend payout ratio (DPR) is currently -22.23%.

Insider Activity

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 transaction, the chairman directly owned 642,880 shares of the company's stock, valued at $51,610,406.40. This trade represents a 5.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.40% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on WLK. UBS Group reaffirmed a "buy" rating and issued a $117.00 price objective (down from $130.00) on shares of Westlake in a report on Friday, June 5th. Citigroup decreased their price target on Westlake from $95.00 to $85.00 and set a "neutral" rating for the company in a research note on Wednesday, June 24th. Royal Bank Of Canada restated an "outperform" rating and set a $95.00 price objective (up from $89.00) on shares of Westlake in a research note on Thursday, August 6th. Wall Street Zen raised shares of Westlake from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Morgan Stanley reduced their price target on shares of 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 analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $93.92.

Westlake 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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