Westlake Chemical Partners (NYSE:WLKP) Share Price Breaks Above Fifty Day Moving Average - Should You Sell?

Key Points

• WLKP shares moved above their 50-day moving average, trading at $21.47 versus the average of $21.36.
• The company reported quarterly earnings of $0.46 per share, beating the $0.30 consensus estimate, while revenue of $314.46 million fell short of expectations.
• Analysts’ consensus rating is “Moderate Buy,” with a $26 price target. The partnership also announced a $0.4714 quarterly dividend, an indicated yield of 8.8%; its payout ratio is 112.57%.

Shares of Westlake Chemical Partners LP (NYSE:WLKP - Get Free Report) crossed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $21.36 and traded as high as $21.49. Westlake Chemical Partners shares last traded at $21.47, with a volume of 13,086 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on WLKP shares. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $26.00 price target on shares of Westlake Chemical Partners in a research note on Wednesday, September 9th. Wall Street Zen raised Westlake Chemical Partners from a "hold" rating to a "buy" rating in a research note on Sunday. Finally, Weiss Ratings downgraded Westlake Chemical Partners from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 2nd. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $26.00.

Westlake Chemical Partners Stock Performance

The business has a fifty day simple moving average of $21.36 and a two-hundred day simple moving average of $22.00. The company has a debt-to-equity ratio of 0.52, a current ratio of 3.52 and a quick ratio of 3.43. The company has a market cap of $756.73 million, a PE ratio of 12.86, a price-to-earnings-growth ratio of 0.80 and a beta of 0.51.

Westlake Chemical Partners (NYSE:WLKP - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The basic materials company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.30 by $0.16. Westlake Chemical Partners had a return on equity of 7.55% and a net margin of 4.77%. The firm had revenue of $314.46 million during the quarter, compared to analyst estimates of $336.33 million. Research analysts anticipate that Westlake Chemical Partners LP will post 1.50 earnings per share for the current year.

Westlake Chemical Partners Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Friday, November 13th will be paid a dividend of $0.4714 per share. This represents a $1.89 annualized dividend and a dividend yield of 8.8%. The ex-dividend date is Friday, November 13th. Westlake Chemical Partners's payout ratio is 112.57%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Arrow Investment Advisors LLC raised its stake in Westlake Chemical Partners by 17.1% in the third quarter. Arrow Investment Advisors LLC now owns 10,639 shares of the basic materials company's stock valued at $226,000 after buying an additional 1,555 shares during the last quarter. Pekin Hardy Strauss Inc. raised its position in shares of Westlake Chemical Partners by 5.0% in the 3rd quarter. Pekin Hardy Strauss Inc. now owns 21,408 shares of the basic materials company's stock valued at $454,000 after purchasing an additional 1,022 shares during the last quarter. Pathway Financial Advisers LLC increased its stake in Westlake Chemical Partners by 5.9% during the 3rd quarter. Pathway Financial Advisers LLC now owns 114,242 shares of the basic materials company's stock valued at $2,422,000 after purchasing an additional 6,348 shares in the last quarter. MGO One Seven LLC increased its stake in Westlake Chemical Partners by 10.0% during the 3rd quarter. MGO One Seven LLC now owns 12,760 shares of the basic materials company's stock valued at $271,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Pinnacle Holdings LLC purchased a new position in shares of Westlake Chemical Partners in the second quarter worth $867,000. 78.28% of the stock is currently owned by hedge funds and other institutional investors.

About Westlake Chemical Partners

Westlake Chemical Partners LP is a master limited partnership formed in 2014 to own and operate ethylene production facilities and related assets. Its operations are conducted through Westlake Chemical OpCo LP, in which the partnership holds an interest. The partnership's assets include ethylene production facilities in Lake Charles, Louisiana, and Calvert City, Kentucky, as well as related pipeline and storage infrastructure. Ethylene is a key chemical building block used to make products such as polyethylene and other plastics.

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