West Pharmaceutical Services (NYSE:WST) Hits New 1-Year High - Still a Buy?

Key Points

• West Pharmaceutical Services shares reached a new 52-week high of $396, trading around $393.91 and giving the company a market capitalization of approximately $27.7 billion.
• Analyst sentiment remains favorable: 12 analysts rate the stock a Buy and two rate it Hold, producing a “Moderate Buy” consensus and an average price target of $391.17.
• The company reported quarterly revenue of $872.3 million and EPS of $2.37, beating estimates and marking 13.8% year-over-year revenue growth. West also raised its quarterly dividend from $0.22 to $0.26 per share, though the yield remains modest at 0.3%.

West Pharmaceutical Services, Inc. (NYSE:WST - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday. The company traded as high as $396.00 and last traded at $393.9140, with a volume of 573,696 shares changing hands. The stock had previously closed at $388.78.

Analyst Ratings Changes

A number of equities analysts have weighed in on WST shares. Citigroup increased their price target on shares of West Pharmaceutical Services from $400.00 to $412.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. Morgan Stanley upgraded shares of West Pharmaceutical Services from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $365.00 to $400.00 in a report on Tuesday, September 22nd. TD Cowen boosted their price objective on shares of West Pharmaceutical Services from $410.00 to $420.00 and gave the company a "buy" rating in a research note on Tuesday, October 13th. Weiss Ratings raised shares of West Pharmaceutical Services from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, August 7th. Finally, Evercore restated an "outperform" rating and set a $425.00 price objective on shares of West Pharmaceutical Services in a report on Monday, July 27th. Twelve equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $391.17.

West Pharmaceutical Services Trading Up 1.3%

The company has a market capitalization of $27.72 billion, a PE ratio of 50.44, a P/E/G ratio of 2.72 and a beta of 1.13. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.12 and a current ratio of 2.82. The business has a fifty day moving average price of $360.21 and a 200 day moving average price of $335.82.

West Pharmaceutical Services (NYSE:WST - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The medical instruments supplier reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.29. West Pharmaceutical Services had a return on equity of 20.11% and a net margin of 16.98%. The business had revenue of $872.30 million for the quarter, compared to analyst estimates of $839.98 million. During the same period in the previous year, the company posted $1.84 EPS. The company's revenue was up 13.8% compared to the same quarter last year. Analysts expect that West Pharmaceutical Services, Inc. will post 8.93 EPS for the current fiscal year.

West Pharmaceutical Services Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, November 11th will be issued a $0.26 dividend. The ex-dividend date is Tuesday, November 10th. This is a positive change from West Pharmaceutical Services's previous quarterly dividend of $0.22. This represents a $1.04 annualized dividend and a yield of 0.3%. West Pharmaceutical Services's payout ratio is 11.27%.

Insider Buying and Selling

In other West Pharmaceutical Services news, VP Annette Favorite sold 8,135 shares of West Pharmaceutical Services stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $340.81, for a total transaction of $2,772,489.35. Following the transaction, the vice president directly owned 16,845 shares of the company's stock, valued at $5,740,944.45. The trade was a 32.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 15,659 shares of company stock valued at $5,443,749 in the last 90 days. Company insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On West Pharmaceutical Services

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of West Pharmaceutical Services in the 2nd quarter valued at $2,387,990,000. State Street Corp lifted its holdings in shares of West Pharmaceutical Services by 1.7% during the 2nd quarter. State Street Corp now owns 3,348,698 shares of the medical instruments supplier's stock valued at $1,202,183,000 after acquiring an additional 54,920 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of West Pharmaceutical Services during the 2nd quarter valued at $733,733,000. Generation Investment Management LLP purchased a new stake in West Pharmaceutical Services during the 2nd quarter worth $728,168,000. Finally, Amundi boosted its position in West Pharmaceutical Services by 85.4% during the 1st quarter. Amundi now owns 644,065 shares of the medical instruments supplier's stock worth $161,428,000 after purchasing an additional 296,639 shares during the period. 93.90% of the stock is currently owned by hedge funds and other institutional investors.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc develops and manufactures components and delivery systems used in the administration and packaging of injectable medicines and other healthcare products. Its offerings include elastomer closures, seals, syringe components, drug-delivery systems, and other specialized packaging components designed to support the safety, quality, and performance of pharmaceutical products.

The company also provides contract-manufacturing services for pharmaceutical, biotechnology, and medical-device customers.

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