Westlake (NYSE:WLK) Shares Gap Down – Here’s Why

Westlake Co. (NYSE:WLK)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $131.48, but opened at $125.41. Westlake shares last traded at $131.44, with a volume of 42,468 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on WLK shares. BMO Capital Markets boosted their target price on shares of Westlake from $167.00 to $171.00 and gave the company a “market perform” rating in a report on Tuesday, August 13th. JPMorgan Chase & Co. boosted their target price on shares of Westlake from $123.00 to $135.00 and gave the company an “underweight” rating in a report on Thursday, August 15th. Mizuho initiated coverage on shares of Westlake in a report on Thursday, August 8th. They issued an “outperform” rating and a $170.00 target price for the company. Barclays raised shares of Westlake from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $162.00 to $180.00 in a research report on Monday, September 30th. Finally, Royal Bank of Canada reduced their price target on shares of Westlake from $174.00 to $170.00 and set an “outperform” rating on the stock in a research report on Friday, October 11th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, Westlake has a consensus rating of “Hold” and an average price target of $165.92.

Westlake Trading Up 1.6 %

The business’s 50-day moving average price is $141.10 and its 200 day moving average price is $146.50. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.61 and a quick ratio of 1.94. The firm has a market capitalization of $17.18 billion, a price-to-earnings ratio of 63.21, a PEG ratio of 1.84 and a beta of 1.19.

Westlake (NYSE:WLK) last posted its earnings results on Tuesday, August 6th. The specialty chemicals company reported $2.40 EPS for the quarter, topping analysts’ consensus estimates of $1.99 by $0.41. The business had revenue of $3.21 billion for the quarter, compared to analysts’ expectations of $3.22 billion. Westlake had a net margin of 2.27% and a return on equity of 7.84%. The business’s revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.31 earnings per share. On average, equities analysts forecast that Westlake Co. will post 7.28 earnings per share for the current fiscal year.

Westlake Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Tuesday, August 20th were issued a $0.525 dividend. The ex-dividend date of this dividend was Tuesday, August 20th. This is a boost from Westlake’s previous quarterly dividend of $0.50. This represents a $2.10 annualized dividend and a yield of 1.57%. Westlake’s dividend payout ratio is currently 100.96%.

Institutional Trading of Westlake

Several institutional investors have recently added to or reduced their stakes in the stock. Capital World Investors raised its holdings in Westlake by 1.7% in the first quarter. Capital World Investors now owns 1,334,579 shares of the specialty chemicals company’s stock valued at $203,924,000 after acquiring an additional 22,743 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in Westlake by 90.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 386,480 shares of the specialty chemicals company’s stock valued at $58,084,000 after purchasing an additional 183,666 shares during the last quarter. Merewether Investment Management LP increased its stake in Westlake by 17.4% during the second quarter. Merewether Investment Management LP now owns 223,366 shares of the specialty chemicals company’s stock valued at $32,348,000 after purchasing an additional 33,100 shares during the last quarter. 1832 Asset Management L.P. bought a new stake in Westlake during the second quarter valued at $27,179,000. Finally, Appian Way Asset Management LP bought a new stake in Westlake during the first quarter valued at $25,154,000. 28.40% of the stock is owned by institutional investors and hedge funds.

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.