Western Midstream Partners, LP (NYSE:WES) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Western Midstream Partners has a consensus analyst rating of “Hold”, based on coverage from nine analysts. The average 12-month price target is $44.75.
• The company posted better-than-expected Q1 results, earning $0.85 per share versus estimates of $0.74 and generating $1.12 billion in revenue, above expectations. Revenue also rose 22.5% from a year earlier.
• Western Midstream raised its quarterly dividend to $0.93 per share, putting the annualized payout at $3.72 and the yield at 8.7%. However, the dividend payout ratio is elevated at 121.57%.

Shares of Western Midstream Partners, LP (NYSE:WES - Get Free Report) have earned an average recommendation of "Hold" from the nine analysts that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, five have issued a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $44.75.

A number of research firms recently issued reports on WES. UBS Group lifted their price target on shares of Western Midstream Partners from $40.00 to $45.00 and gave the company a "neutral" rating in a research note on Thursday, May 21st. Morgan Stanley lifted their price target on shares of Western Midstream Partners from $41.00 to $51.00 and gave the company an "underweight" rating in a research note on Wednesday. JPMorgan Chase & Co. dropped their price target 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. Wells Fargo & Company lifted their price target on shares of Western Midstream Partners from $41.00 to $43.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 13th. Finally, Citigroup lifted their price target on shares of Western Midstream Partners from $39.00 to $42.00 and gave the company a "neutral" rating in a research note on Tuesday, May 12th.

Western Midstream Partners Price Performance

Shares of NYSE WES opened at $42.80 on Friday. The stock has a market capitalization of $16.85 billion, a price-to-earnings ratio of 13.99, a PEG ratio of 1.82 and a beta of 0.70. Western Midstream Partners has a 12 month low of $36.90 and a 12 month high of $48.01. The firm's 50 day simple moving average is $42.63 and its 200-day simple moving average is $41.21. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.09 and a quick ratio of 1.09.

Western Midstream Partners (NYSE:WES - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The pipeline company reported $0.85 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 firm had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.01 billion. During the same quarter last year, the company earned $0.79 EPS. The firm's revenue for the quarter was up 22.5% compared to the same quarter last year. Analysts expect that Western Midstream Partners will post 3.41 EPS for the current year.

Western Midstream Partners Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a $0.93 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $3.72 dividend on an annualized basis and a yield of 8.7%. This is an increase from Western Midstream Partners's previous quarterly dividend of $0.91. Western Midstream Partners's dividend payout ratio is 121.57%.

Insider Transactions at Western Midstream Partners

In related news, Director Robert G. Phillips purchased 1,250 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The shares were purchased at an average price of $40.19 per share, with a total value of $50,237.50. Following the purchase, the director owned 5,296 shares of the company's stock, valued at $212,846.24. The trade was a 30.89% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.04% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Summit Financial Wealth Advisors LLC purchased a new position in Western Midstream Partners in the 1st quarter valued at $215,000. Sunbelt Securities Inc. purchased a new position in Western Midstream Partners in the 1st quarter valued at $156,000. Royal Bank of Canada lifted its holdings in Western Midstream Partners by 3.2% in the 1st quarter. Royal Bank of Canada now owns 241,086 shares of the pipeline company's stock valued at $9,926,000 after purchasing an additional 7,444 shares in the last quarter. Empowered Funds LLC lifted its holdings in Western Midstream Partners by 99.8% in the 1st quarter. Empowered Funds LLC now owns 472,989 shares of the pipeline company's stock valued at $19,473,000 after purchasing an additional 236,221 shares in the last quarter. Finally, Infrastructure Capital Advisors LLC lifted its holdings in Western Midstream Partners by 6.7% in the 1st quarter. Infrastructure Capital Advisors LLC now owns 1,234,879 shares of the pipeline company's stock valued at $50,840,000 after purchasing an additional 77,202 shares in the last quarter. Hedge funds and other institutional investors own 84.82% of the company's stock.

Western Midstream Partners Company Profile

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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