Westlake (NYSE:WLK) Shares Gap Up - Here's What Happened

Key Points

• Westlake's share price saw a significant increase, opening at $82.99 after closing at $76.25, indicating strong market interest.
• Analysts have mixed ratings, with a consensus rating of "Hold" and an average price target of $93.77, reflecting varying confidence in the stock’s performance.
• The company recently reported a net margin of 3.23% and a quarterly earnings miss with EPS of ($0.09), falling short of the anticipated $0.06.

Westlake Corp. (NYSE:WLK - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $76.25, but opened at $82.99. Westlake shares last traded at $81.61, with a volume of 199,108 shares changing hands.

Analyst Ratings Changes

WLK has been the topic of several research analyst reports. Royal Bank Of Canada upped their price objective on Westlake from $88.00 to $92.00 and gave the company an "outperform" rating in a research report on Thursday, July 3rd. Morgan Stanley decreased their price target on Westlake from $122.00 to $98.00 and set an "equal weight" rating for the company in a research note on Monday, May 12th. Bank of America cut their price objective on Westlake from $90.00 to $84.00 and set a "buy" rating on the stock in a report on Wednesday, June 18th. Wells Fargo & Company raised their target price on Westlake from $76.00 to $90.00 and gave the stock an "equal weight" rating in a report on Monday, July 14th. Finally, Wall Street Zen lowered Westlake from a "hold" rating to a "sell" rating in a report on Friday, May 9th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $93.77.

Westlake Stock Up 10.6%

The firm has a fifty day moving average price of $78.28 and a 200-day moving average price of $92.13. The company has a quick ratio of 1.86, a current ratio of 2.63 and a debt-to-equity ratio of 0.42. The firm has a market cap of $10.81 billion, a price-to-earnings ratio of 28.22, a PEG ratio of 18.62 and a beta of 0.92.

Westlake (NYSE:WLK - Get Free Report) last issued its earnings results on Tuesday, August 5th. The specialty chemicals company reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of $0.06 by ($0.15). Westlake had a net margin of 3.23% and a return on equity of 4.19%. The firm had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3 billion. During the same quarter in the previous year, the business posted $2.40 EPS. Westlake's revenue was down 7.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Westlake Corp. will post 6.48 EPS for the current year.

Westlake Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Tuesday, August 12th will be paid a $0.4714 dividend. This represents a $1.89 dividend on an annualized basis and a yield of 2.2%. Westlake's dividend payout ratio (DPR) is 70.47%.

Hedge Funds Weigh In On Westlake

A number of hedge funds have recently bought and sold shares of WLK. Victory Capital Management Inc. boosted its position in shares of Westlake by 17.7% during the first quarter. Victory Capital Management Inc. now owns 3,900,025 shares of the specialty chemicals company's stock worth $390,120,000 after buying an additional 586,178 shares during the period. Goldman Sachs Group Inc. raised its stake in Westlake by 10.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,041,190 shares of the specialty chemicals company's stock valued at $104,150,000 after purchasing an additional 102,268 shares during the period. Balyasny Asset Management L.P. increased its stake in shares of Westlake by 732.7% in the fourth quarter. Balyasny Asset Management L.P. now owns 993,150 shares of the specialty chemicals company's stock worth $113,865,000 after acquiring an additional 873,888 shares during the last quarter. Nuveen Asset Management LLC increased its stake in shares of Westlake by 6.3% in the fourth quarter. Nuveen Asset Management LLC now owns 983,090 shares of the specialty chemicals company's stock worth $112,711,000 after acquiring an additional 58,093 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Westlake by 4.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 934,122 shares of the specialty chemicals company's stock worth $107,092,000 after purchasing an additional 43,544 shares in the last quarter. 28.40% of the stock is currently owned by institutional investors and hedge funds.

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.

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