Westlake Chemical Partners (NYSE:WLKP) Share Price Crosses Above 50-Day Moving Average - What's Next?

Key Points

• WLKP shares moved above their 50-day moving average, reaching $21.70 before last trading at $21.58. The stock remains below its 200-day moving average of $22.23.
• Analyst sentiment is mixed but leans positive, with an average rating of “Moderate Buy” and a consensus price target of $26.00. Deutsche Bank maintained a Buy rating, while other firms downgraded their ratings to Hold.
• Westlake Chemical Partners declared a quarterly dividend of $0.4714, equivalent to an annualized $1.89 and an 8.7% yield; however, its payout ratio is elevated at 115.95%. The company slightly missed quarterly EPS expectations, reporting $0.40 versus the $0.41 consensus.

Shares of Westlake Chemical Partners LP (NYSE:WLKP - Get Free Report) passed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $21.58 and traded as high as $21.70. Westlake Chemical Partners shares last traded at $21.58, with a volume of 52,526 shares trading hands.

Analysts Set New Price Targets

Several brokerages recently commented on WLKP. Wall Street Zen cut shares of Westlake Chemical Partners from a "strong-buy" rating to a "hold" rating in a research note on Saturday, August 15th. Weiss Ratings cut shares of Westlake Chemical Partners from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $26.00 price target on shares of Westlake Chemical Partners in a report on Wednesday, September 9th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Westlake Chemical Partners presently has an average rating of "Moderate Buy" and a consensus target price of $26.00.

Westlake Chemical Partners Stock Up 0.7%

The stock has a 50-day simple moving average of $21.58 and a two-hundred day simple moving average of $22.23. The company has a quick ratio of 3.36, a current ratio of 3.44 and a debt-to-equity ratio of 0.52. The firm has a market cap of $760.69 million, a PE ratio of 13.24, a P/E/G ratio of 0.82 and a beta of 0.52.

Westlake Chemical Partners (NYSE:WLKP - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The basic materials company reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.41 by ($0.01). The firm had revenue of $297.10 million during the quarter, compared to analysts' expectations of $537.00 million. Westlake Chemical Partners had a return on equity of 7.25% and a net margin of 4.66%. Analysts expect that Westlake Chemical Partners LP will post 1.5 earnings per share for the current year.

Westlake Chemical Partners Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Thursday, August 13th were paid a $0.4714 dividend. The ex-dividend date of this dividend was Thursday, August 13th. This represents a $1.89 annualized dividend and a yield of 8.7%. Westlake Chemical Partners's dividend payout ratio is currently 115.95%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Pinnacle Holdings LLC bought a new stake in Westlake Chemical Partners during the 2nd quarter valued at $867,000. Royal Bank of Canada boosted its position in Westlake Chemical Partners by 36.6% during the 1st quarter. Royal Bank of Canada now owns 10,582 shares of the basic materials company's stock valued at $234,000 after buying an additional 2,833 shares during the period. Energy Income Partners LLC grew its holdings in Westlake Chemical Partners by 1.1% in the 1st quarter. Energy Income Partners LLC now owns 1,582,007 shares of the basic materials company's stock worth $34,947,000 after acquiring an additional 17,518 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in Westlake Chemical Partners by 9.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 6,874 shares of the basic materials company's stock worth $152,000 after acquiring an additional 572 shares during the last quarter. Finally, Pathway Financial Advisers LLC increased its position in shares of Westlake Chemical Partners by 3.1% in the first quarter. Pathway Financial Advisers LLC now owns 106,598 shares of the basic materials company's stock valued at $2,355,000 after acquiring an additional 3,221 shares during the period. 78.28% of the stock is owned by hedge funds and other institutional investors.

Westlake Chemical Partners Company Profile

Westlake Chemical Partners LP NYSE: WLKP is a publicly traded master limited partnership formed by Westlake Corporation in 2014. The partnership owns and operates ethylene production facilities and related assets in the United States, with operations centered in the Gulf Coast region and Calvert City, Kentucky.

The company produces ethylene, a basic chemical used in the manufacture of polyethylene, vinyl products, chlor-alkali derivatives and other petrochemical materials. Westlake Chemical Partners sells a substantial portion of its ethylene production to affiliates of Westlake Corporation under long-term agreements, while also serving other customers in the petrochemical industry.

Westlake Chemical Partners is sponsored and supported by Westlake Corporation, a global manufacturer of performance and essential materials.

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