Westlake Corporation (NYSE:WLK) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus rating of Hold on Westlake from 18 analysts (1 sell, 10 hold, 6 buy, 1 strong buy) with an average 1‑year target of $110.19, while some firms (Citigroup, RBC) have raised targets to about $145.
• Westlake's latest quarter beat EPS estimates (loss of $0.25 vs. -$1.47 expected) but revenue fell 10.9% year‑over‑year to $2.53B and the company still posts a negative net margin (-13.5%) and negative ROE.
• Shares trade around $115.72 (50‑day MA $109.56; 52‑week range $56.33–$124.23), the firm pays a $0.53 quarterly dividend (~1.8% yield), institutional investors significantly increased stakes, and the CFO recently sold 17,409 shares.

Westlake Corporation (NYSE:WLK - Get Free Report) has been assigned a consensus rating of "Hold" from the eighteen analysts that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $110.1875.

A number of analysts have weighed in on the company. Zacks Research upgraded Westlake from a "strong sell" rating to a "hold" rating in a research note on Thursday, February 26th. Citigroup increased their target price on Westlake from $130.00 to $145.00 and gave the stock a "buy" rating in a research note on Wednesday, April 8th. Bank of America reiterated a "neutral" rating and issued a $119.00 target price on shares of Westlake in a research note on Monday, April 6th. Royal Bank Of Canada set a $145.00 target price on Westlake and gave the stock an "outperform" rating in a research note on Friday, April 10th. Finally, Mizuho increased their price target on Westlake from $97.00 to $110.00 and gave the stock a "neutral" rating in a research report on Monday, March 23rd.

Westlake Stock Performance

NYSE:WLK opened at $115.72 on Wednesday. The stock's fifty day moving average is $109.56 and its 200 day moving average is $87.32. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $124.23. The firm has a market capitalization of $14.82 billion, a PE ratio of -9.89 and a beta of 0.75. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.65 and a current ratio of 2.24.

Westlake (NYSE:WLK - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The specialty chemicals company reported ($0.25) earnings per share for the quarter, beating the consensus estimate of ($1.47) by $1.22. Westlake had a negative return on equity of 1.22% and a negative net margin of 13.50%.The company had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.61 billion. During the same quarter in the prior year, the firm posted $0.06 EPS. Westlake's quarterly revenue was down 10.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Westlake will post 1.63 earnings per share for the current year.

Westlake Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Tuesday, March 3rd were given a dividend of $0.53 per share. The ex-dividend date of this dividend was Tuesday, March 3rd. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.8%. Westlake's dividend payout ratio is presently -18.12%.

Insider Activity

In other news, CFO Mark Steven Bender sold 17,409 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $100.92, for a total transaction of $1,756,916.28. Following the transaction, the chief financial officer owned 44,433 shares of the company's stock, valued at approximately $4,484,178.36. This represents a 28.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Westlake

A number of institutional investors have recently added to or reduced their stakes in the stock. Orbis Allan Gray Ltd boosted its position in Westlake by 12.1% during the fourth quarter. Orbis Allan Gray Ltd now owns 4,386,635 shares of the specialty chemicals company's stock valued at $324,348,000 after purchasing an additional 472,224 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Westlake by 7,239.1% in the fourth quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company's stock worth $312,080,000 after acquiring an additional 4,163,207 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Westlake by 13.9% in the fourth quarter. Vanguard Group Inc. now owns 3,917,329 shares of the specialty chemicals company's stock worth $289,647,000 after purchasing an additional 477,698 shares during the last quarter. Capital World Investors acquired a new stake in shares of Westlake during the fourth quarter worth about $160,548,000. Finally, Dimensional Fund Advisors LP boosted its position in Westlake by 45.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,885,678 shares of the specialty chemicals company's stock valued at $139,431,000 after buying an additional 585,438 shares during the last quarter. Institutional investors own 28.40% of the company's stock.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company's core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.

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