WestRock (NYSE:WRK) Reaches New 1-Year High on Strong Earnings

WestRock (NYSE:WRK)’s stock price hit a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $51.23 and last traded at $51.08, with a volume of 583280 shares trading hands. The stock had previously closed at $47.90.

The basic materials company reported $0.39 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.14. The firm had revenue of $4.73 billion during the quarter, compared to analysts’ expectations of $4.75 billion. WestRock had a net margin of 1.57% and a return on equity of 5.85%. The firm’s revenue for the quarter was down 10.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.77 EPS.

WestRock Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 22nd. Shareholders of record on Tuesday, May 14th will be given a $0.3025 dividend. The ex-dividend date is Monday, May 13th. This represents a $1.21 annualized dividend and a yield of 2.37%. WestRock’s dividend payout ratio (DPR) is 101.68%.

Analyst Ratings Changes

Several equities research analysts have recently commented on WRK shares. Wells Fargo & Company boosted their price target on shares of WestRock from $46.00 to $51.00 and gave the company an “equal weight” rating in a report on Friday. Royal Bank of Canada restated a “sector perform” rating and issued a $42.00 price target on shares of WestRock in a report on Friday, February 2nd. StockNews.com started coverage on shares of WestRock in a report on Thursday. They issued a “hold” rating for the company. Finally, Seaport Res Ptn lowered shares of WestRock from a “buy” rating to a “neutral” rating in a report on Monday, January 29th. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $44.50.

Insider Buying and Selling

In related news, insider Vicki L. Lostetter sold 3,500 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $42.77, for a total transaction of $149,695.00. Following the completion of the transaction, the insider now owns 92,117 shares in the company, valued at approximately $3,939,844.09. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. GSA Capital Partners LLP acquired a new position in WestRock during the 1st quarter valued at approximately $661,000. Daiwa Securities Group Inc. increased its stake in WestRock by 8.0% during the 1st quarter. Daiwa Securities Group Inc. now owns 25,597 shares of the basic materials company’s stock valued at $1,266,000 after purchasing an additional 1,887 shares in the last quarter. Thompson Davis & CO. Inc. acquired a new position in WestRock during the 1st quarter valued at approximately $257,000. Nordea Investment Management AB increased its stake in WestRock by 22.4% during the 1st quarter. Nordea Investment Management AB now owns 5,301,068 shares of the basic materials company’s stock valued at $260,176,000 after purchasing an additional 970,199 shares in the last quarter. Finally, Fidelis Capital Partners LLC acquired a new position in WestRock during the 1st quarter valued at approximately $140,000. Institutional investors own 83.38% of the company’s stock.

WestRock Price Performance

The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.95 and a current ratio of 1.34. The firm has a market cap of $13.21 billion, a price-to-earnings ratio of 42.99, a price-to-earnings-growth ratio of 4.77 and a beta of 1.10. The stock’s 50 day simple moving average is $47.73 and its 200-day simple moving average is $42.73.

WestRock Company Profile

WestRock Company, together with its subsidiaries, provides fiber-based paper and packaging solutions in North America, South America, Europe, Asia, and Australia. It operates through four segments: Corrugated Packaging, Consumer Packaging, Global Paper, and Distribution. The Corrugated Packaging segment produces containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards to consumer and industrial products manufacturers, and corrugated box manufacturers.