Salem Investment Counselors Inc. Acquires New Stake in West Pharmaceutical Services, Inc. $WST

Key Points

• Salem Investment Counselors Inc. acquired 2,550 shares of West Pharmaceutical Services, Inc., valued at approximately $558,000, in the 2nd quarter.
• West Pharmaceutical Services reported earnings of $1.84 EPS for the last quarter, exceeding estimates, with a year-over-year revenue increase of 9.2%.
• The company has raised its quarterly dividend from $0.21 to $0.22, reflecting a 0.3% yield, with the ex-dividend date set for November 12th.

Salem Investment Counselors Inc. bought a new stake in shares of West Pharmaceutical Services, Inc. (NYSE:WST - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 2,550 shares of the medical instruments supplier's stock, valued at approximately $558,000.

Other hedge funds have also modified their holdings of the company. Durable Capital Partners LP raised its stake in shares of West Pharmaceutical Services by 146.8% during the 1st quarter. Durable Capital Partners LP now owns 1,573,119 shares of the medical instruments supplier's stock worth $352,190,000 after purchasing an additional 935,721 shares in the last quarter. Brown Advisory Inc. grew its holdings in West Pharmaceutical Services by 28.1% in the 1st quarter. Brown Advisory Inc. now owns 3,268,478 shares of the medical instruments supplier's stock valued at $731,747,000 after buying an additional 716,442 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its holdings in West Pharmaceutical Services by 57.8% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 997,882 shares of the medical instruments supplier's stock valued at $223,406,000 after buying an additional 365,575 shares during the last quarter. Nuveen LLC acquired a new stake in West Pharmaceutical Services in the 1st quarter valued at approximately $79,255,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of West Pharmaceutical Services by 43.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,134,706 shares of the medical instruments supplier's stock worth $254,038,000 after acquiring an additional 343,997 shares during the period. 93.90% of the stock is owned by hedge funds and other institutional investors.

West Pharmaceutical Services Stock Performance

Shares of WST traded down $2.06 during mid-day trading on Friday, reaching $252.93. The company's stock had a trading volume of 150,365 shares, compared to its average volume of 812,458. West Pharmaceutical Services, Inc. has a 1-year low of $187.43 and a 1-year high of $352.33. The stock has a market cap of $18.19 billion, a P/E ratio of 37.88, a PEG ratio of 4.55 and a beta of 1.05. The business has a 50-day simple moving average of $243.64 and a two-hundred day simple moving average of $226.24. The company has a current ratio of 2.78, a quick ratio of 2.08 and a debt-to-equity ratio of 0.07.

West Pharmaceutical Services (NYSE:WST - Get Free Report) last posted its quarterly earnings data on Thursday, July 24th. The medical instruments supplier reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.51 by $0.33. West Pharmaceutical Services had a return on equity of 18.43% and a net margin of 16.48%.The firm had revenue of $766.50 million for the quarter, compared to analyst estimates of $725.11 million. During the same quarter last year, the company earned $1.52 EPS. The company's revenue was up 9.2% on a year-over-year basis. West Pharmaceutical Services has set its FY 2025 guidance at 6.650-6.850 EPS. As a group, equities research analysts anticipate that West Pharmaceutical Services, Inc. will post 6.62 earnings per share for the current fiscal year.

West Pharmaceutical Services Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 19th. Shareholders of record on Wednesday, November 12th will be issued a $0.22 dividend. The ex-dividend date is Wednesday, November 12th. This is an increase from West Pharmaceutical Services's previous quarterly dividend of $0.21. This represents a $0.88 annualized dividend and a yield of 0.3%. West Pharmaceutical Services's dividend payout ratio is currently 12.57%.

Analysts Set New Price Targets

Several equities analysts have issued reports on WST shares. Citigroup reiterated a "buy" rating on shares of West Pharmaceutical Services in a research report on Thursday, May 22nd. Barclays started coverage on West Pharmaceutical Services in a research report on Tuesday, June 24th. They issued an "equal weight" rating and a $245.00 price objective for the company. Wall Street Zen upgraded West Pharmaceutical Services from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Rothschild Redb upgraded West Pharmaceutical Services to a "strong-buy" rating in a research report on Monday. Finally, Rothschild & Co Redburn initiated coverage on West Pharmaceutical Services in a research report on Monday. They set a "buy" rating and a $311.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $318.56.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.