US Capital Advisors Upgrades Western Midstream Partners (NYSE:WES) to "Strong-Buy"

Key Points

• US Capital Advisors upgraded Western Midstream Partners (NYSE:WES) from “moderate buy” to “strong-buy,” adding to a mixed but generally cautious analyst backdrop. The broader consensus remains “Hold,” with an average target price of $44.75.
• The company reported stronger-than-expected quarterly results, posting EPS of $0.85 versus the $0.74 estimate and revenue of $1.12 billion versus $1.01 billion expected. Revenue also rose 22.5% year over year.
• WES shares traded down 2.5% even after the upgrade, opening at $42.80. The stock sits near its 50-day and 200-day moving averages and remains below its 52-week high of $48.01.

Western Midstream Partners (NYSE:WES - Get Free Report) was upgraded by research analysts at US Capital Advisors from a "moderate buy" rating to a "strong-buy" rating in a research report issued on Friday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on WES. UBS Group increased their price objective on shares of Western Midstream Partners from $40.00 to $45.00 and gave the stock a "neutral" rating in a research report on Thursday, May 21st. Stifel Nicolaus set a $46.00 target price on shares of Western Midstream Partners and gave the stock a "buy" rating in a research note on Thursday, May 7th. Morgan Stanley increased their target price on shares of Western Midstream Partners from $41.00 to $51.00 and gave the stock an "underweight" rating in a research note on Wednesday. Wall Street Zen raised shares of Western Midstream Partners from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, JPMorgan Chase & Co. cut their target price on shares of Western Midstream Partners from $44.00 to $43.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $44.75.

Western Midstream Partners Trading Down 2.5%

WES opened at $42.80 on Friday. Western Midstream Partners has a twelve month low of $36.90 and a twelve month high of $48.01. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 2.34. The company has a fifty day moving average of $42.63 and a 200-day moving average of $41.21. The stock has a market cap of $16.85 billion, a PE ratio of 13.99, a price-to-earnings-growth ratio of 1.87 and a beta of 0.70.

Western Midstream Partners (NYSE:WES - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The pipeline company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.11. Western Midstream Partners had a net margin of 29.98% and a return on equity of 33.89%. The company had revenue of $1.12 billion during the quarter, compared to analysts' expectations of $1.01 billion. During the same period in the prior year, the company posted $0.79 earnings per share. Western Midstream Partners's revenue for the quarter was up 22.5% compared to the same quarter last year. On average, sell-side analysts predict that Western Midstream Partners will post 3.41 EPS for the current year.

Insider Buying and Selling at Western Midstream Partners

In other Western Midstream Partners news, Director Robert G. Phillips acquired 1,250 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were purchased at an average cost of $40.19 per share, with a total value of $50,237.50. Following the completion of the purchase, the director owned 5,296 shares of the company's stock, valued at approximately $212,846.24. This represents a 30.89% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.04% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Howard Financial Services LTD. grew its stake in Western Midstream Partners by 2.3% during the fourth quarter. Howard Financial Services LTD. now owns 10,947 shares of the pipeline company's stock valued at $432,000 after acquiring an additional 249 shares in the last quarter. Whittier Trust Co. of Nevada Inc. lifted its position in Western Midstream Partners by 0.9% during the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 30,784 shares of the pipeline company's stock valued at $1,218,000 after purchasing an additional 284 shares during the last quarter. Captrust Financial Advisors lifted its position in Western Midstream Partners by 0.6% during the fourth quarter. Captrust Financial Advisors now owns 45,995 shares of the pipeline company's stock valued at $1,817,000 after purchasing an additional 287 shares during the last quarter. M&T Bank Corp lifted its position in Western Midstream Partners by 3.5% during the fourth quarter. M&T Bank Corp now owns 8,540 shares of the pipeline company's stock valued at $337,000 after purchasing an additional 288 shares during the last quarter. Finally, Mutual Advisors LLC lifted its position in Western Midstream Partners by 1.9% during the fourth quarter. Mutual Advisors LLC now owns 15,453 shares of the pipeline company's stock valued at $610,000 after purchasing an additional 292 shares during the last quarter. 84.82% of the stock is owned by institutional investors.

About Western Midstream Partners

Western Midstream Partners, LP NYSE: WES is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership's primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.

The company's asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.

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