Westlake Chemical Partners (NYSE:WLKP) Stock Price Crosses Below 50 Day Moving Average - Here's What Happened

Key Points

• WLKP shares fell below their 50-day moving average, reaching $21.52 and closing at $21.57, versus a 50-day average of $21.65.
• Analyst sentiment is mixed: Wall Street Zen and Weiss Ratings downgraded the stock to “hold,” while Deutsche Bank maintained a “buy” rating with a $26 target; the overall consensus remains “Moderate Buy.”
• The partnership reported quarterly EPS of $0.40, slightly below estimates, while maintaining a quarterly dividend of $0.4714 per share, equivalent to an annualized yield of about 8.7%.

Westlake Chemical Partners LP (NYSE:WLKP - Get Free Report) passed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $21.65 and traded as low as $21.52. Westlake Chemical Partners shares last traded at $21.57, with a volume of 9,948 shares.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Westlake Chemical Partners from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 15th. Weiss Ratings downgraded shares of Westlake Chemical Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, September 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $26.00 target price on shares of Westlake Chemical Partners in a report on Wednesday, September 9th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $26.00.

Westlake Chemical Partners Stock Performance

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 company has a market cap of $760.34 million, a PE ratio of 13.23, a P/E/G ratio of 0.83 and a beta of 0.54. The business's fifty day moving average is $21.65 and its 200-day moving average is $22.27.

Westlake Chemical Partners (NYSE:WLKP - Get Free Report) last announced its earnings results on Tuesday, August 4th. The basic materials company reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.01). Westlake Chemical Partners had a return on equity of 7.25% and a net margin of 4.66%.The company had revenue of $297.10 million during the quarter, compared to the consensus estimate of $537.00 million. As a group, research analysts predict that Westlake Chemical Partners LP will post 1.5 EPS for the current fiscal year.

Westlake Chemical Partners Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Thursday, August 13th were given a dividend of $0.4714 per share. This represents a $1.89 dividend on an annualized basis and a dividend yield of 8.7%. The ex-dividend date of this dividend was Thursday, August 13th. Westlake Chemical Partners's payout ratio is presently 115.95%.

Institutional Investors Weigh In On Westlake Chemical Partners

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Clearbridge Investments LLC lifted its stake in shares of Westlake Chemical Partners by 30.4% in the 4th quarter. Clearbridge Investments LLC now owns 633,569 shares of the basic materials company's stock valued at $12,038,000 after purchasing an additional 147,687 shares during the last quarter. Pinnacle Holdings LLC bought a new position in shares of Westlake Chemical Partners during the 2nd quarter valued at approximately $867,000. ING Groep NV increased its position in shares of Westlake Chemical Partners by 54.7% during the 4th quarter. ING Groep NV now owns 82,000 shares of the basic materials company's stock valued at $1,558,000 after purchasing an additional 29,000 shares during the last quarter. Energy Income Partners LLC raised its holdings in Westlake Chemical Partners by 1.1% during the 1st quarter. Energy Income Partners LLC now owns 1,582,007 shares of the basic materials company's stock valued at $34,947,000 after buying an additional 17,518 shares during the period. Finally, Centennial Bank AR purchased a new stake in Westlake Chemical Partners during the 4th quarter valued at $173,000. 78.28% of the stock is owned by hedge funds and other institutional investors.

About Westlake Chemical Partners

Westlake Chemical Partners LP NYSE: WLKP is a master limited partnership that owns, operates and acquires ethylene production assets. Ethylene is a basic petrochemical used in the manufacture of polyethylene, vinyl products and other chemical materials.

The partnership's principal business is the production and sale of ethylene. Its output is sold primarily to Westlake Corporation, its sponsor, under long-term commercial arrangements, with additional sales to third-party customers. Westlake Chemical Partners' assets are located in the United States and are integrated with Westlake's broader petrochemical operations.

Westlake Chemical Partners was formed in 2014 and became a publicly traded partnership on the New York Stock Exchange that year.

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