Westlake (NYSE:WLK) Sets New 1-Year Low – What’s Next?

Westlake Co. (NYSE:WLK) shares reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $94.24 and last traded at $95.59, with a volume of 655277 shares traded. The stock had previously closed at $102.01.

Wall Street Analyst Weigh In

Several research analysts recently commented on WLK shares. UBS Group raised Westlake from a “neutral” rating to a “buy” rating and set a $144.00 price target for the company in a research report on Friday, January 10th. Barclays cut their price objective on Westlake from $175.00 to $135.00 and set an “overweight” rating for the company in a report on Tuesday, February 25th. Piper Sandler downgraded shares of Westlake from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $135.00 to $120.00 in a report on Wednesday, March 26th. Morgan Stanley dropped their price target on shares of Westlake from $130.00 to $122.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 26th. Finally, Bank of America decreased their price objective on shares of Westlake from $134.00 to $116.00 and set a “neutral” rating for the company in a research report on Tuesday, February 25th. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $138.21.

Westlake Price Performance

The company’s 50-day simple moving average is $109.50 and its 200-day simple moving average is $122.27. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.79 and a quick ratio of 2.04. The stock has a market capitalization of $12.09 billion, a price-to-earnings ratio of 132.82, a P/E/G ratio of 2.36 and a beta of 1.18.

Westlake (NYSE:WLK) last released its quarterly earnings results on Monday, February 24th. The specialty chemicals company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.04 by ($0.98). The firm had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $3.01 billion. Westlake had a net margin of 0.81% and a return on equity of 6.93%. The business’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.72 earnings per share. Research analysts forecast that Westlake Co. will post 6.48 earnings per share for the current fiscal year.

Westlake Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 19th. Investors of record on Tuesday, March 4th were paid a $0.525 dividend. The ex-dividend date was Tuesday, March 4th. This represents a $2.10 annualized dividend and a dividend yield of 2.23%. Westlake’s dividend payout ratio (DPR) is presently 45.36%.

Institutional Trading of Westlake

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Blue Trust Inc. increased its holdings in shares of Westlake by 247.7% during the fourth quarter. Blue Trust Inc. now owns 226 shares of the specialty chemicals company’s stock worth $26,000 after purchasing an additional 161 shares during the period. Allworth Financial LP grew its position in Westlake by 6,316.7% during the fourth quarter. Allworth Financial LP now owns 385 shares of the specialty chemicals company’s stock worth $45,000 after buying an additional 379 shares in the last quarter. Transamerica Financial Advisors Inc. increased its stake in Westlake by 1,668.2% during the 4th quarter. Transamerica Financial Advisors Inc. now owns 389 shares of the specialty chemicals company’s stock worth $45,000 after acquiring an additional 367 shares during the period. Continuum Advisory LLC raised its holdings in Westlake by 43.2% in the 3rd quarter. Continuum Advisory LLC now owns 318 shares of the specialty chemicals company’s stock valued at $48,000 after acquiring an additional 96 shares in the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Westlake by 72.0% during the 4th quarter. GAMMA Investing LLC now owns 523 shares of the specialty chemicals company’s stock valued at $60,000 after acquiring an additional 219 shares during the period. Institutional investors and hedge funds own 28.40% of the company’s stock.

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.