Western Midstream Partners (NYSE:WES) Reaches New 52-Week High - Here's Why

Key Points

• Western Midstream Partners (NYSE:WES) hit a new 52-week high of $44.78, continuing a recent run higher as the stock traded up about 1.8% on the day.
• The company posted better-than-expected first-quarter earnings, reporting $0.85 EPS on $1.12 billion in revenue versus analyst estimates of $0.74 EPS and $1.01 billion in revenue.
• Western Midstream also raised its quarterly dividend to $0.93 per share from $0.91, implying an annualized yield of about 8.3%, while analysts currently have a consensus rating of Hold.

Western Midstream Partners, LP (NYSE:WES - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $44.78 and last traded at $44.6380, with a volume of 1192437 shares changing hands. The stock had previously closed at $43.95.

Analysts Set New Price Targets

WES has been the subject of a number of research reports. Citigroup reaffirmed a "neutral" rating on shares of Western Midstream Partners in a report on Tuesday. Wells Fargo & Company lifted their price target on shares of Western Midstream Partners from $39.00 to $41.00 and gave the company an "equal weight" rating in a report on Friday, March 13th. JPMorgan Chase & Co. dropped their price objective 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. Finally, Stifel Nicolaus set a $46.00 target price on shares of Western Midstream Partners and gave the stock a "buy" rating in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Western Midstream Partners has a consensus rating of "Hold" and a consensus target price of $42.29.

Western Midstream Partners Stock Up 1.8%

The company has a market cap of $17.62 billion, a price-to-earnings ratio of 14.64 and a beta of 0.70. The stock has a 50-day simple moving average of $41.48 and a 200-day simple moving average of $40.53. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.97.

Western Midstream Partners (NYSE:WES - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The pipeline company reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.11. The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.01 billion. Western Midstream Partners had a return on equity of 33.65% and a net margin of 29.98%.The company's revenue was up 22.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.79 earnings per share. As a group, analysts predict that Western Midstream Partners, LP will post 3.25 EPS for the current year.

Western Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be issued a $0.93 dividend. The ex-dividend date is Friday, May 1st. This is a positive change from Western Midstream Partners's previous quarterly dividend of $0.91. This represents a $3.72 annualized dividend and a dividend yield of 8.3%. Western Midstream Partners's dividend payout ratio is 121.57%.

Insider Buying and Selling

In other news, SVP Christopher B. Dial sold 5,879 shares of Western Midstream Partners stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $42.35, for a total transaction of $248,975.65. Following the transaction, the senior vice president owned 185,011 shares in the company, valued at approximately $7,835,215.85. The trade was a 3.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, 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 acquired at an average cost of $40.19 per share, for a total transaction of $50,237.50. Following the completion of the transaction, the director directly owned 5,296 shares of the company's stock, valued at $212,846.24. This trade represents a 30.89% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.04% of the stock is owned by insiders.

Institutional Investors Weigh In On Western Midstream Partners

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. 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. acquired a new stake in Western Midstream Partners during the fourth quarter valued at $27,000. Rothschild Investment LLC grew its stake in Western Midstream Partners by 76.2% in the fourth quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company's stock valued at $31,000 after purchasing an additional 343 shares in the last quarter. Garton & Associates Financial Advisors LLC acquired a new position in Western Midstream Partners in the 4th quarter worth about $32,000. Finally, Global Wealth Strategies & Associates purchased a new stake in shares of Western Midstream Partners during the 4th quarter worth 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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