Western Midstream Partners, LP (NYSE:WES) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts give Western Midstream an average rating of "Hold" (1 sell, 5 hold, 1 buy) with a 12‑month consensus price target of about $41.71.
• The company missed the most recent quarter—EPS $0.47 vs. $0.91 expected and revenue $1.03B vs. $1.06B expected—though revenue was up 11.1% year‑over‑year and analysts forecast ~3.25 EPS for the year.
• Western Midstream raised its quarterly dividend to $0.93 (annualized $3.72) for a yield of about 8.7%, while the dividend payout ratio stands at 124%.

Shares of Western Midstream Partners, LP (NYSE:WES - Get Free Report) have received an average rating of "Hold" from the seven ratings firms that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating on the company. The average twelve-month target price among analysts that have covered the stock in the last year is $41.7143.

A number of equities research analysts have issued reports on WES shares. Wells Fargo & Company boosted their price target on Western Midstream Partners from $39.00 to $41.00 and gave the company an "equal weight" rating in a research note on Friday, March 13th. JPMorgan Chase & Co. reduced their price target on shares of Western Midstream Partners from $44.00 to $43.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Finally, Stifel Nicolaus lowered their price objective on shares of Western Midstream Partners from $43.00 to $42.00 and set a "hold" rating on the stock in a research note on Friday, February 20th.

Western Midstream Partners Price Performance

Shares of NYSE:WES opened at $42.76 on Wednesday. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market cap of $16.83 billion, a price-to-earnings ratio of 14.25 and a beta of 0.70. The business has a 50-day simple moving average of $41.33 and a two-hundred day simple moving average of $40.38. Western Midstream Partners has a fifty-two week low of $35.25 and a fifty-two week high of $44.74.

Western Midstream Partners (NYSE:WES - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The pipeline company reported $0.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.91 by ($0.44). The company had revenue of $1.03 billion for the quarter, compared to analysts' expectations of $1.06 billion. Western Midstream Partners had a net margin of 30.52% and a return on equity of 33.14%. The business's revenue was up 11.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.85 EPS. On average, analysts expect that Western Midstream Partners will post 3.25 earnings per share for the current year.

Western Midstream Partners Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be paid a dividend of $0.93 per share. The ex-dividend date is Friday, May 1st. This represents a $3.72 annualized dividend and a dividend yield of 8.7%. This is a boost from Western Midstream Partners's previous quarterly dividend of $0.91. Western Midstream Partners's dividend payout ratio is 124.00%.

Insiders Place Their Bets

In other Western Midstream Partners news, SVP Christopher B. Dial sold 5,879 shares of the business's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $42.35, for a total transaction of $248,975.65. Following the completion of the sale, the senior vice president owned 185,011 shares of the company's stock, valued at approximately $7,835,215.85. The trade was a 3.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Robert G. Phillips purchased 1,250 shares of Western Midstream Partners stock in a transaction on Wednesday, March 11th. The stock was bought at an average price of $40.19 per share, with a total value of $50,237.50. Following the transaction, 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 disclosure for this purchase is available in the SEC filing. Insiders own 0.04% of the company's stock.

Hedge Funds Weigh In On Western Midstream Partners

Several large investors have recently added to or reduced their stakes in WES. Eagle Bay Advisors LLC purchased a new position in shares of Western Midstream Partners during the 4th quarter valued at $27,000. Northwestern Mutual Wealth Management Co. purchased a new stake in Western Midstream Partners in the 4th quarter worth $27,000. Rothschild Investment LLC raised its holdings in Western Midstream Partners by 76.2% during the fourth quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company's stock valued at $31,000 after acquiring an additional 343 shares during the period. Garton & Associates Financial Advisors LLC bought a new stake in Western Midstream Partners during the fourth quarter valued at about $32,000. Finally, Global Wealth Strategies & Associates purchased a new position in shares of Western Midstream Partners in the fourth quarter valued at about $35,000. Hedge funds and other institutional investors own 84.82% of the company's stock.

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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