Westlake (NYSE:WLK) Hits New 1-Year Low - Should You Sell?

Westlake Co. (NYSE:WLK - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $70.28 and last traded at $72.73, with a volume of 979929 shares. The stock had previously closed at $72.34.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on WLK shares. UBS Group lowered their price target on Westlake from $118.00 to $101.00 and set a "buy" rating on the stock in a report on Wednesday. JPMorgan Chase & Co. lowered their target price on shares of Westlake from $110.00 to $82.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 6th. Wall Street Zen cut shares of Westlake from a "hold" rating to a "sell" rating in a research note on Friday, May 9th. Royal Bank of Canada reduced their price target on Westlake from $96.00 to $88.00 and set an "outperform" rating on the stock in a research report on Wednesday. Finally, BMO Capital Markets set a $94.00 price objective on shares of Westlake and gave the company a "market perform" rating in a research report on Tuesday, May 20th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $98.54.

Westlake Stock Down 2.9%

The company has a quick ratio of 2.04, a current ratio of 2.79 and a debt-to-equity ratio of 0.41. The company's fifty day moving average price is $87.65 and its 200-day moving average price is $106.36. The stock has a market capitalization of $9.05 billion, a PE ratio of 99.39, a price-to-earnings-growth ratio of 2.36 and a beta of 1.03.

Westlake (NYSE:WLK - Get Free Report) last posted its quarterly earnings results on Friday, May 2nd. The specialty chemicals company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($1.01). Westlake had a return on equity of 6.93% and a net margin of 0.81%. The company had revenue of $2.85 billion during the quarter, compared to analysts' expectations of $2.97 billion. During the same period in the prior year, the firm earned $1.34 EPS. Westlake's revenue for the quarter was down 4.3% compared to the same quarter last year. Analysts forecast that Westlake Co. will post 6.48 earnings per share for the current year.

Westlake Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Tuesday, May 20th will be paid a $0.525 dividend. The ex-dividend date is Tuesday, May 20th. This represents a $2.10 annualized dividend and a dividend yield of 2.98%. Westlake's dividend payout ratio is presently 70.47%.

Institutional Investors Weigh In On Westlake

Several institutional investors and hedge funds have recently made changes to their positions in WLK. Janney Montgomery Scott LLC boosted its stake in Westlake by 27.5% during the 4th quarter. Janney Montgomery Scott LLC now owns 59,499 shares of the specialty chemicals company's stock valued at $6,822,000 after purchasing an additional 12,833 shares during the last quarter. Inspire Investing LLC boosted its position in shares of Westlake by 18.0% during the fourth quarter. Inspire Investing LLC now owns 2,246 shares of the specialty chemicals company's stock valued at $258,000 after buying an additional 343 shares during the last quarter. Blue Trust Inc. increased its holdings in Westlake by 247.7% in the 4th quarter. Blue Trust Inc. now owns 226 shares of the specialty chemicals company's stock worth $26,000 after buying an additional 161 shares in the last quarter. Union Bancaire Privee UBP SA purchased a new position in Westlake in the 4th quarter worth about $361,000. Finally, KBC Group NV lifted its stake in Westlake by 2.7% during the 4th quarter. KBC Group NV now owns 27,255 shares of the specialty chemicals company's stock valued at $3,125,000 after acquiring an additional 707 shares during the period. Institutional investors own 28.40% of the company's stock.

Westlake Company Profile

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.