UBS Group AG Boosts Holdings in Westlake Corporation $WLK

Key Points

• UBS Group AG increased its stake in Westlake by 15.6% during Q4, adding 87,532 shares to hold 648,012 shares valued at about $47.9 million (0.51% ownership).
• Westlake missed expectations for the quarter, reporting ($0.77) EPS vs. ($0.10) expected and revenue of $2.65 billion vs. $2.79 billion, resulting in a negative net margin of 14.91%.
• Analyst views are mixed: the consensus rating is "Hold" with a consensus price target of $112.40, while individual calls range from BMO's upgrade to $127 to JPMorgan's downgrade to $90.

UBS Group AG grew its holdings in Westlake Corporation (NYSE:WLK - Free Report) by 15.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 648,012 shares of the specialty chemicals company's stock after acquiring an additional 87,532 shares during the period. UBS Group AG owned 0.51% of Westlake worth $47,914,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of WLK. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Westlake in the 3rd quarter worth $28,000. CIBC Private Wealth Group LLC purchased a new position in Westlake during the third quarter valued at $53,000. Hantz Financial Services Inc. grew its holdings in Westlake by 180.3% during the third quarter. Hantz Financial Services Inc. now owns 740 shares of the specialty chemicals company's stock valued at $57,000 after purchasing an additional 476 shares during the period. NewEdge Advisors LLC grew its holdings in Westlake by 49.6% during 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 during the period. Finally, Parallel Advisors LLC increased its position in Westlake by 58.1% in the third quarter. Parallel Advisors LLC now owns 778 shares of the specialty chemicals company's stock worth $60,000 after buying an additional 286 shares in the last quarter. Hedge funds and other institutional investors own 28.40% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on WLK shares. BMO Capital Markets raised Westlake from a "market perform" rating to an "outperform" rating and lifted their price objective for the company from $108.00 to $127.00 in a research report on Thursday, March 5th. JPMorgan Chase & Co. cut shares of Westlake from a "neutral" rating to an "underweight" rating and set a $90.00 target price on the stock. in a research note on Wednesday. Citigroup reaffirmed a "buy" rating on shares of Westlake in a report on Thursday. Bank of America reiterated a "neutral" rating and issued a $119.00 price target on shares of Westlake in a research report on Monday, April 6th. Finally, Zacks Research upgraded shares of Westlake from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Westlake presently has an average rating of "Hold" and a consensus price target of $112.40.

Insider Activity at Westlake

In related news, CFO Mark Steven Bender sold 17,409 shares of the business's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $100.92, for a total value of $1,756,916.28. Following the sale, the chief financial officer directly owned 44,433 shares in the company, valued at approximately $4,484,178.36. The trade was a 28.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.40% of the company's stock.

Westlake Price Performance

WLK stock opened at $99.94 on Thursday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.65 and a current ratio of 2.17. The company's fifty day moving average price is $111.81 and its 200-day moving average price is $89.30. Westlake Corporation has a one year low of $56.33 and a one year high of $124.23. The company has a market capitalization of $12.80 billion, a PE ratio of -7.87 and a beta of 0.67.

Westlake (NYSE:WLK - Get Free Report) last posted its earnings results on Tuesday, May 5th. The specialty chemicals company reported ($0.77) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.67). The company had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.79 billion. Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. The business's revenue was down 6.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.31) earnings per share. On average, equities analysts anticipate that Westlake Corporation will post 1.9 EPS for the current fiscal year.

Westlake Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Tuesday, March 3rd were issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Tuesday, March 3rd. Westlake's payout ratio is -16.69%.

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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