Westlake's (WLK) Neutral Rating Reiterated at Bank of America

Key Points

• Bank of America reiterated a "Neutral" rating on Westlake and cut its price target to $115 (from $119), implying roughly a 3.6% downside from the previous close.
• Westlake reported Q results showing an EPS of ($0.25) that topped estimates of ($1.47), but revenue missed at $2.53B versus $2.61B, with revenue down 10.9% year‑over‑year and a negative net margin of 13.5%.
• The Street’s consensus is a "Hold" with a $104.27 average price target; analyst ratings are mixed (1 Strong Buy, 6 Buy, 9 Hold, 1 Sell) and the stock trades near $119 with a ~$15.3B market cap.

Westlake (NYSE:WLK - Get Free Report)'s stock had its "neutral" rating restated by analysts at Bank of America in a research note issued on Monday,Benzinga reports. They presently have a $115.00 price objective on the specialty chemicals company's stock, down from their prior price objective of $119.00. Bank of America's price target indicates a potential downside of 3.59% from the company's previous close.

A number of other brokerages have also issued reports on WLK. Wells Fargo & Company upped their price target on shares of Westlake from $100.00 to $110.00 and gave the company an "equal weight" rating in a research note on Friday, March 13th. KeyCorp reissued a "sector weight" rating on shares of Westlake in a report on Tuesday, December 16th. UBS Group upped their target price on Westlake from $129.00 to $139.00 and gave the company a "buy" rating in a research report on Wednesday, March 18th. Royal Bank Of Canada restated an "outperform" rating and issued a $100.00 target price on shares of Westlake in a research note on Friday, January 16th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Westlake in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Westlake presently has a consensus rating of "Hold" and a consensus price target of $104.27.

Westlake Trading Down 0.1%

Westlake stock opened at $119.29 on Monday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.65 and a current ratio of 2.24. The stock has a market cap of $15.26 billion, a PE ratio of -10.20 and a beta of 0.75. The stock has a 50-day moving average of $102.54 and a two-hundred day moving average of $84.08. Westlake has a one year low of $56.33 and a one year high of $120.00.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings results on Tuesday, February 24th. The specialty chemicals company reported ($0.25) earnings per share for the quarter, topping analysts' consensus estimates of ($1.47) by $1.22. The business had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.61 billion. Westlake had a negative return on equity of 1.22% and a negative net margin of 13.50%.The company's revenue was down 10.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.06 earnings per share. On average, research analysts anticipate that Westlake will post 6.48 EPS for the current fiscal year.

Insider Activity

In other news, CFO Mark Steven Bender sold 17,409 shares of the business's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $100.92, for a total value of $1,756,916.28. Following the completion of the transaction, the chief financial officer owned 44,433 shares of the company's stock, valued at $4,484,178.36. The trade was a 28.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of WLK. Caitong International Asset Management Co. Ltd purchased a new stake in Westlake in the 3rd quarter worth approximately $28,000. Quarry LP acquired a new position in shares of Westlake in the 4th quarter valued at $31,000. Fifth Third Bancorp boosted its holdings in Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company's stock worth $42,000 after buying an additional 234 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new stake in Westlake during the third quarter valued at $53,000. Finally, Hantz Financial Services Inc. grew its position in Westlake by 180.3% during the third quarter. Hantz Financial Services Inc. now owns 740 shares of the specialty chemicals company's stock valued at $57,000 after buying an additional 476 shares during the period. 28.40% of the stock is owned by institutional investors and hedge funds.

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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