Western Midstream Partners (NYSE:WES) Stock Crosses Above 200 Day Moving Average - What's Next?

Key Points

• Shares recently moved above their 200-day moving average of $39.55, trading as high as $43.21 and last at $42.19 on about 1.48 million shares.
• Analysts hold a consensus "Hold" rating (1 Buy, 4 Hold, 1 Sell) with an average price target of $41.17, slightly below current trading levels and reflecting mixed analyst revisions.
• The latest quarter missed EPS expectations ($0.47 vs. $0.91 est.) and the firm pays a high annualized dividend of $3.64 (yield ~8.6%) with a dividend payout ratio of 121%, signaling potential dividend sustainability risk.

Shares of Western Midstream Partners, LP (NYSE:WES - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $39.55 and traded as high as $43.21. Western Midstream Partners shares last traded at $42.19, with a volume of 1,483,157 shares traded.

Wall Street Analyst Weigh In

WES has been the subject of several research reports. Wells Fargo & Company lowered their target price on Western Midstream Partners from $40.00 to $39.00 and set an "equal weight" rating for the company in a research note on Thursday, January 22nd. Royal Bank Of Canada lifted their price objective on Western Midstream Partners from $39.00 to $42.00 and gave the stock a "sector perform" rating in a research report on Friday, November 28th. Stifel Nicolaus cut their target price on shares of Western Midstream Partners from $43.00 to $42.00 and set a "hold" rating on the stock in a research report on Friday, February 20th. Finally, Wall Street Zen lowered shares of Western Midstream Partners from a "buy" rating to a "hold" rating in a research note on Saturday, December 27th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Western Midstream Partners has a consensus rating of "Hold" and an average price target of $41.17.

Western Midstream Partners Stock Down 0.2%

The business has a fifty day moving average of $41.20 and a 200 day moving average of $39.55. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.97. The firm has a market cap of $16.61 billion, a P/E ratio of 14.06 and a beta of 0.76.

Western Midstream Partners (NYSE:WES - Get Free Report) last posted its earnings results on Wednesday, February 18th. The pipeline company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.44). The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.06 billion. Western Midstream Partners had a return on equity of 33.14% and a net margin of 30.52%.Western Midstream Partners's quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.85 earnings per share. On average, equities research analysts predict that Western Midstream Partners, LP will post 4.02 EPS for the current year.

Western Midstream Partners Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Monday, February 2nd were issued a $0.91 dividend. The ex-dividend date was Monday, February 2nd. This represents a $3.64 annualized dividend and a yield of 8.6%. Western Midstream Partners's dividend payout ratio (DPR) is 121.33%.

Insider Activity

In related news, SVP Christopher B. Dial sold 5,879 shares of the company's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $42.35, for a total value of $248,975.65. Following the completion of the sale, the senior vice president owned 185,011 shares in the company, valued at $7,835,215.85. This represents a 3.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.04% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WES. Virtu Financial LLC increased its holdings in shares of Western Midstream Partners by 25.0% in the fourth quarter. Virtu Financial LLC now owns 35,571 shares of the pipeline company's stock worth $1,405,000 after acquiring an additional 7,104 shares in the last quarter. Ameriflex Group Inc. bought a new stake in shares of Western Midstream Partners during the 4th quarter worth approximately $156,000. Beacon Pointe Advisors LLC boosted its holdings in shares of Western Midstream Partners by 3.6% in the 4th quarter. Beacon Pointe Advisors LLC now owns 36,140 shares of the pipeline company's stock valued at $1,428,000 after buying an additional 1,240 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of Western Midstream Partners by 6.1% in the fourth quarter. NewEdge Advisors LLC now owns 58,973 shares of the pipeline company's stock valued at $2,329,000 after buying an additional 3,415 shares in the last quarter. Finally, Empowered Funds LLC increased its holdings in Western Midstream Partners by 24.1% during the fourth quarter. Empowered Funds LLC now owns 236,768 shares of the pipeline company's stock worth $9,352,000 after buying an additional 45,930 shares during the last quarter. 84.82% of the stock is owned by institutional investors and hedge funds.

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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