West Pharmaceutical Services (NYSE:WST) Reaches New 52-Week High - Should You Buy?

Key Points

• West Pharmaceutical Services reached a new 52-week high, trading as high as $402.50, with a market capitalization of approximately $28.16 billion and a P/E ratio of 51.22.
• Analyst sentiment remains positive overall, with 12 Buy ratings and two Holds producing a “Moderate Buy” consensus; however, the $391.17 average price target is below the stock’s recent trading level, and some firms recently downgraded the shares.
• The company raised its quarterly dividend from $0.22 to $0.26 per share, while insiders sold 15,659 shares worth about $5.4 million over the last quarter.

West Pharmaceutical Services, Inc. (NYSE:WST - Get Free Report) shares hit a new 52-week high during trading on Wednesday. The stock traded as high as $402.50 and last traded at $399.7950, with a volume of 57,498 shares. The stock had previously closed at $398.29.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on WST shares. Zacks Research downgraded West Pharmaceutical Services from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 12th. BNP Paribas Exane initiated coverage on West Pharmaceutical Services in a research note on Monday, July 13th. They set an "outperform" rating and a $447.00 price target for the company. Citigroup boosted their price target on West Pharmaceutical Services from $400.00 to $412.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Weiss Ratings raised shares of West Pharmaceutical Services from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, August 7th. Finally, Wall Street Zen cut shares of West Pharmaceutical Services from a "buy" rating to a "hold" rating in a research note on Saturday. Twelve investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, West Pharmaceutical Services has a consensus rating of "Moderate Buy" and a consensus target price of $391.17.

West Pharmaceutical Services Stock Performance

The company's fifty day moving average is $364.15 and its 200-day moving average is $311.15. The company has a market capitalization of $28.16 billion, a PE ratio of 51.22 and a beta of 1.13.

West Pharmaceutical Services Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, November 11th will be paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Tuesday, November 10th. This is a boost from West Pharmaceutical Services's previous quarterly dividend of $0.22. West Pharmaceutical Services's dividend payout ratio (DPR) is currently 13.32%.

Insider Buying and Selling

In other news, VP Annette Favorite sold 2,524 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $365.00, for a total value of $921,260.00. Following the completion of the transaction, the vice president owned 21,818 shares of the company's stock, valued at $7,963,570. This represents a 10.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 15,659 shares of company stock worth $5,443,749 over the last quarter. 0.60% of the stock is owned by company insiders.

Institutional Trading of West Pharmaceutical Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Evergreen Capital Management LLC boosted its stake in West Pharmaceutical Services by 2.5% in the 3rd quarter. Evergreen Capital Management LLC now owns 1,131 shares of the medical instruments supplier's stock worth $419,000 after purchasing an additional 28 shares during the period. Greenleaf Trust raised its position in shares of West Pharmaceutical Services by 4.1% during the second quarter. Greenleaf Trust now owns 843 shares of the medical instruments supplier's stock valued at $303,000 after buying an additional 33 shares during the last quarter. Wealth Alliance LLC lifted its holdings in shares of West Pharmaceutical Services by 3.8% in the first quarter. Wealth Alliance LLC now owns 945 shares of the medical instruments supplier's stock worth $237,000 after buying an additional 35 shares in the last quarter. 55 North Private Wealth LLC lifted its holdings in shares of West Pharmaceutical Services by 5.4% in the third quarter. 55 North Private Wealth LLC now owns 708 shares of the medical instruments supplier's stock worth $262,000 after buying an additional 36 shares in the last quarter. Finally, D.A. Davidson & CO. lifted its holdings in shares of West Pharmaceutical Services by 4.1% in the third quarter. D.A. Davidson & CO. now owns 909 shares of the medical instruments supplier's stock worth $337,000 after buying an additional 36 shares in the last quarter. Institutional investors own 93.90% of the company's stock.

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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