Mitsubishi UFJ Asset Management Co. Ltd. Makes New Investment in Westlake Corporation $WLK

Key Points

• Mitsubishi UFJ Asset Management acquired 16,907 Westlake shares worth approximately $1.23 million in the second quarter. Institutional investors and hedge funds collectively own 28.4% of WLK.
• Westlake exceeded quarterly earnings expectations, reporting $2.01 EPS versus the $1.83 consensus and revenue of $3.27 billion, up 10.8% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $93.92, while Westlake raised its quarterly dividend to $0.533 per share, implying a 2.7% yield.

Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Westlake Corporation (NYSE:WLK - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 16,907 shares of the specialty chemicals company's stock, valued at approximately $1,234,000.

Other large investors have also bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Westlake in the 3rd quarter valued at about $28,000. Quarry LP bought a new position in shares of Westlake in the fourth quarter valued at approximately $31,000. Fifth Third Bancorp increased its position in shares of Westlake by 71.3% during the 4th 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 last quarter. CIBC Private Wealth Group LLC purchased a new stake in Westlake during the third quarter worth about $53,000. Finally, NewEdge Advisors LLC increased its stake in shares of Westlake by 49.6% during the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company's stock worth $57,000 after purchasing an additional 247 shares during the last quarter. 28.40% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on WLK shares. Royal Bank Of Canada restated an "outperform" rating and issued a $95.00 price objective (up from $89.00) on shares of Westlake in a research note on Thursday, August 6th. JPMorgan Chase & Co. raised shares of Westlake from an "underweight" rating to a "neutral" rating and set a $90.00 price target on the stock in a report on Monday, May 18th. Zacks Research lowered shares of Westlake from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 21st. Wells Fargo & Company cut their price objective on Westlake from $110.00 to $89.00 and set an "equal weight" rating for the company in a report on Wednesday, August 5th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Westlake in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Westlake presently has a consensus rating of "Hold" and an average price target of $93.92.

Westlake Stock Performance

NYSE:WLK opened at $78.96 on Friday. The firm's fifty day simple moving average is $76.88 and its 200 day simple moving average is $93.53. 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 stock has a market cap of $10.09 billion, a P/E ratio of -8.24 and a beta of 0.63. Westlake Corporation has a twelve month low of $56.33 and a twelve month high of $124.23.

Westlake (NYSE:WLK - Get Free Report) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (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 analyst estimates 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 was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($1.11) EPS. As a group, research analysts predict that Westlake Corporation will post 3.43 EPS for the current year.

Westlake Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th will be issued a $0.533 dividend. This represents a $2.13 dividend on an annualized basis and a yield of 2.7%. This is a boost from Westlake's previous quarterly dividend of $0.53. The ex-dividend date is Tuesday, August 25th. Westlake's dividend payout ratio is currently -22.13%.

Insider Buying and Selling at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of the firm's stock in a transaction that occurred 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 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 is available at this hyperlink. 1.40% of the stock is owned by insiders.

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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