Vanguard Group Inc. Raises Stock Position in Westlake Corporation $WLK

Key Points

• Vanguard Group increased its position in Westlake by 13.9% to 3,917,329 shares (about 3.05% of the company), valued at roughly $289.6 million at quarter-end.
• Westlake reported a significant earnings miss, posting ($0.77) EPS vs. ($0.10) expected and revenue of $2.65 billion vs. $2.79 billion expected, with a negative net margin of 14.9%.
• CFO Mark Steven Bender sold 17,409 shares (at ~$100.92 each), cutting his stake by 28.15%; insiders now own about 1.4% of the stock.

Vanguard Group Inc. boosted its position in shares of Westlake Corporation (NYSE:WLK - Free Report) by 13.9% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,917,329 shares of the specialty chemicals company's stock after purchasing an additional 477,698 shares during the period. Vanguard Group Inc. owned approximately 3.05% of Westlake worth $289,647,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the company. The Manufacturers Life Insurance Company raised its stake in Westlake by 0.6% during the second quarter. The Manufacturers Life Insurance Company now owns 28,134 shares of the specialty chemicals company's stock worth $2,136,000 after purchasing an additional 165 shares during the period. Journey Advisory Group LLC raised its stake in Westlake by 0.5% during the third quarter. Journey Advisory Group LLC now owns 45,072 shares of the specialty chemicals company's stock worth $3,473,000 after purchasing an additional 230 shares during the period. NewEdge Advisors LLC raised its stake in 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 during the period. Treasurer of the State of North Carolina raised its stake in Westlake by 1.7% during the second quarter. Treasurer of the State of North Carolina now owns 15,608 shares of the specialty chemicals company's stock worth $1,185,000 after purchasing an additional 266 shares during the period. Finally, Parallel Advisors LLC raised its stake in Westlake by 58.1% during the third quarter. Parallel Advisors LLC now owns 778 shares of the specialty chemicals company's stock worth $60,000 after purchasing an additional 286 shares during the period. 28.40% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

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

Wall Street Analyst Weigh In

A number of brokerages have commented on WLK. UBS Group set a $130.00 target price on shares of Westlake and gave the stock a "buy" rating in a research note on Wednesday. Citigroup reissued a "buy" rating and issued a $125.00 price target (down from $145.00) on shares of Westlake in a research note on Thursday. Bank of America reissued a "neutral" rating and issued a $119.00 price target on shares of Westlake in a research note on Monday, April 6th. Mizuho boosted their price target on shares of Westlake from $97.00 to $110.00 and gave the company a "neutral" rating in a research note on Monday, March 23rd. Finally, Wells Fargo & Company reduced their price target on shares of Westlake from $125.00 to $110.00 and set an "equal weight" rating on the stock in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $110.73.

Westlake Stock Performance

NYSE WLK opened at $97.33 on Friday. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.17 and a quick ratio of 1.65. The company has a market cap of $12.47 billion, a P/E ratio of -7.66 and a beta of 0.67. The stock has a 50-day moving average of $111.67 and a two-hundred day moving average of $89.45. Westlake Corporation has a 1-year low of $56.33 and a 1-year high of $124.23.

Westlake (NYSE:WLK - Get Free Report) last announced 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). Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.The business had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.79 billion. During the same period in the previous year, the company earned ($0.31) earnings per share. Westlake's quarterly revenue was down 6.8% on a year-over-year basis. As a group, analysts anticipate that Westlake Corporation will post 2.72 EPS for the current year.

Westlake Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Tuesday, March 3rd were paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Tuesday, March 3rd. Westlake's dividend payout ratio is presently -16.69%.

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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