Short Interest in Westlake Corp. (NYSE:WLK) Grows By 277.7%

Key Points

• Westlake Corp. reported a significant increase in short interest, rising by 277.7% from June to July, bringing the total to 3,540,000 shares shorted.
• The company recently cut its dividend to $0.4714 per share, yielding about 2.5%, with a payout ratio of 70.47%.
• Wall Street analysts have a consensus rating of "Hold" on Westlake stock, with target prices ranging from $84.00 to $98.00 after a series of downgrades.

Westlake Corp. (NYSE:WLK - Get Free Report) was the recipient of a significant increase in short interest during the month of July. As of July 15th, there was short interest totaling 3,540,000 shares, anincreaseof277.7% from the June 30th total of 937,200 shares. Currently,10.7% of the shares of the stock are short sold. Based on an average daily volume of 1,260,000 shares, the days-to-cover ratio is currently 2.8 days. Based on an average daily volume of 1,260,000 shares, the days-to-cover ratio is currently 2.8 days. Currently,10.7% of the shares of the stock are short sold.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC grew its holdings in shares of Westlake by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 557,943 shares of the specialty chemicals company's stock valued at $63,832,000 after acquiring an additional 5,297 shares in the last quarter. Private Trust Co. NA raised its holdings in Westlake by 251.1% during the first quarter. Private Trust Co. NA now owns 316 shares of the specialty chemicals company's stock worth $32,000 after acquiring an additional 226 shares in the last quarter. Fifth Third Bancorp boosted its position in Westlake by 71.9% during the first quarter. Fifth Third Bancorp now owns 514 shares of the specialty chemicals company's stock valued at $51,000 after purchasing an additional 215 shares during the last quarter. Asset Management One Co. Ltd. grew its stake in Westlake by 4.6% in the first quarter. Asset Management One Co. Ltd. now owns 12,253 shares of the specialty chemicals company's stock valued at $1,226,000 after purchasing an additional 534 shares in the last quarter. Finally, Janney Montgomery Scott LLC increased its position in shares of Westlake by 2.7% during the 1st quarter. Janney Montgomery Scott LLC now owns 61,134 shares of the specialty chemicals company's stock worth $6,115,000 after purchasing an additional 1,635 shares during the last quarter. Institutional investors own 28.40% of the company's stock.

Westlake Stock Up 2.3%

NYSE WLK traded up $1.83 during mid-day trading on Thursday, reaching $82.95. 487,738 shares of the company's stock traded hands, compared to its average volume of 1,017,075. The company has a market cap of $10.64 billion, a price-to-earnings ratio of -156.49, a P/E/G ratio of 20.50 and a beta of 0.92. The company has a fifty day simple moving average of $78.70 and a 200-day simple moving average of $91.99. The company has a current ratio of 2.47, a quick ratio of 1.86 and a debt-to-equity ratio of 0.43. Westlake has a 1-year low of $68.55 and a 1-year high of $153.34.

Westlake (NYSE:WLK - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The specialty chemicals company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.15). The firm had revenue of $2.95 billion for the quarter, compared to analysts' expectations of $3 billion. Westlake had a negative net margin of 0.57% and a positive return on equity of 1.26%. Westlake's quarterly revenue was down 7.9% compared to the same quarter last year. During the same period in the prior year, the company posted $2.40 earnings per share. As a group, equities research analysts expect that Westlake will post 6.48 EPS for the current year.

Westlake Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Tuesday, August 12th will be issued a dividend of $0.4714 per share. This represents a $1.89 dividend on an annualized basis and a yield of 2.3%. Westlake's dividend payout ratio is currently 70.47%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on WLK shares. Tudor Pickering raised Westlake from a "hold" rating to a "strong-buy" rating in a research note on Wednesday. Barclays lowered their price target on shares of Westlake from $135.00 to $100.00 and set an "overweight" rating for the company in a report on Monday, May 5th. Bank of America decreased their target price on shares of Westlake from $90.00 to $84.00 and set a "buy" rating on the stock in a research report on Wednesday, June 18th. Tudor, Pickering, Holt & Co. upgraded Westlake from a "hold" rating to a "buy" rating and set a $90.00 price target for the company in a report on Wednesday. Finally, BMO Capital Markets raised their target price on shares of Westlake from $91.00 to $94.00 and gave the stock a "market perform" rating in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, six have given a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $92.93.

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products.