Royal Bank of Canada Boosts Stake in Westlake Corporation $WLK

Key Points

• Royal Bank of Canada increased its Westlake stake by 21.9% in the first quarter, purchasing 18,681 additional shares to hold 103,951 shares worth approximately $12.1 million. Institutional investors collectively own 28.4% of WLK.
• Analyst sentiment remains cautious: Westlake has an average “Hold” rating and a consensus price target of $93.92, while recent target cuts and a Zacks “Strong Sell” downgrade highlight downside concerns.
• Westlake’s latest quarterly results exceeded expectations, with EPS of $2.01 versus the $1.83 consensus and revenue of $3.27 billion, up 10.8% year over year. The company also maintains a quarterly dividend of $0.53 per share, yielding about 2.7%.

Royal Bank of Canada boosted its stake in Westlake Corporation (NYSE:WLK - Free Report) by 21.9% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 103,951 shares of the specialty chemicals company's stock after purchasing an additional 18,681 shares during the period. Royal Bank of Canada owned about 0.08% of Westlake worth $12,144,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of WLK. Caitong International Asset Management Co. Ltd purchased a new stake in Westlake during the third quarter worth about $28,000. Quarry LP acquired a new stake in shares of Westlake during the fourth quarter worth about $31,000. Fifth Third Bancorp boosted its stake in shares of 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 in the third quarter valued at approximately $53,000. Finally, NewEdge Advisors LLC grew its holdings 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 purchasing an additional 247 shares in the last quarter. 28.40% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on WLK shares. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $115.00 target price on shares of Westlake in a report on Thursday, May 7th. JPMorgan Chase & Co. raised Westlake from an "underweight" rating to a "neutral" rating and set a $90.00 price objective on the stock in a research report on Monday, May 18th. Wells Fargo & Company reduced their price objective on Westlake from $110.00 to $89.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Citigroup decreased their target price on Westlake from $95.00 to $85.00 and set a "neutral" rating for the company in a report on Wednesday, June 24th. Finally, Zacks Research cut Westlake from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $93.92.

Westlake Trading Up 0.1%

Shares of NYSE:WLK opened at $77.58 on Friday. Westlake Corporation has a 52 week low of $56.33 and a 52 week high of $124.23. The company's 50 day moving average is $78.34 and its two-hundred day moving average is $93.86. The company has a current ratio of 2.45, a quick ratio of 1.56 and a debt-to-equity ratio of 0.55. The company has a market cap of $9.92 billion, a PE ratio of -8.10 and a beta of 0.63.

Westlake (NYSE:WLK - Get Free Report) last released its quarterly earnings data 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 business had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.24 billion. Westlake had a negative net margin of 10.94% and a positive return on equity of 0.93%. The company's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the previous year, the company earned ($1.11) EPS. Equities analysts predict that Westlake Corporation will post 3.32 earnings per share for the current fiscal year.

Westlake Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Wednesday, May 27th were issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Wednesday, May 27th. Westlake's payout ratio is -22.13%.

About Westlake

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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