Western Midstream Partners (NYSE:WES) Reaches New 52-Week High - Should You Buy?

Key Points

• Western Midstream Partners reached a new 52-week high of $48.63, trading around $48.46, above the analyst consensus price target of $47.00. Despite recent upgrades, the overall analyst consensus remains “Hold.”
• The company reported quarterly earnings of $0.99 per share, beating estimates by $0.08, while revenue rose 30% year over year to $1.22 billion.
• WES declared a quarterly dividend of $0.93 per share, representing a 7.6% annualized yield, but its payout ratio is high at 116.98%, which may raise sustainability concerns.

Western Midstream Partners, LP (NYSE:WES - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $48.63 and last traded at $48.4580, with a volume of 57680 shares traded. The stock had previously closed at $48.12.

Analysts Set New Price Targets

A number of research analysts have weighed in on WES shares. Stifel Nicolaus set a $46.00 price target on Western Midstream Partners and gave the stock a "buy" rating in a research note on Thursday, May 7th. Wells Fargo & Company upped their price objective on Western Midstream Partners from $43.00 to $46.00 and gave the stock an "equal weight" rating in a report on Monday. Mizuho raised their price objective on Western Midstream Partners from $48.00 to $51.00 and gave the stock an "outperform" rating in a report on Tuesday, July 14th. US Capital Advisors upgraded shares of Western Midstream Partners from a "moderate buy" rating to a "strong-buy" rating in a report on Friday, May 29th. Finally, Royal Bank Of Canada restated a "sector perform" rating on shares of Western Midstream Partners in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Western Midstream Partners currently has an average rating of "Hold" and a consensus price target of $47.00.

Western Midstream Partners Stock Performance

The company has a market capitalization of $20.11 billion, a PE ratio of 15.30, a PEG ratio of 1.95 and a beta of 0.68. The company has a debt-to-equity ratio of 2.34, a quick ratio of 1.09 and a current ratio of 1.09. The company has a 50 day moving average price of $45.13 and a 200 day moving average price of $43.20.

Western Midstream Partners (NYSE:WES - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The pipeline company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.08. The firm had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.13 billion. Western Midstream Partners had a return on equity of 34.79% and a net margin of 29.44%.Western Midstream Partners's quarterly revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.87 earnings per share. Equities analysts forecast that Western Midstream Partners, LP will post 3.52 EPS for the current year.

Western Midstream Partners Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.93 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $3.72 annualized dividend and a dividend yield of 7.6%. Western Midstream Partners's payout ratio is 116.98%.

Hedge Funds Weigh In On Western Midstream Partners

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Eagle Bay Advisors LLC bought a new position in shares of Western Midstream Partners in the fourth quarter worth $27,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Western Midstream Partners during the fourth quarter valued at $27,000. Rothschild Investment LLC lifted its position in shares of Western Midstream Partners by 76.2% in the 4th quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company's stock valued at $31,000 after acquiring an additional 343 shares in the last quarter. Garton & Associates Financial Advisors LLC purchased a new stake in Western Midstream Partners in the 4th quarter worth about $32,000. Finally, Glen Eagle Advisors LLC boosted its stake in shares of Western Midstream Partners by 843.0% during the 4th quarter. Glen Eagle Advisors LLC now owns 943 shares of the pipeline company's stock valued at $37,000 after buying an additional 843 shares during the period. 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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