On September 14, 2023, it was reported that ProShare Advisors LLC had significantly increased its investment in Westlake Co. (NYSE:WLK) during the first quarter of the year. According to the disclosure made by the company to the Securities and Exchange Commission (SEC), ProShare Advisors LLC now owned a total of 312,639 shares of Westlake’s stock after purchasing an additional 294,948 shares. This represents a substantial increase of 1,667.2% in its holdings. The institutional investor’s stake in Westlake is valued at approximately $36,260,000.
Westlake had recently released its quarterly earnings data on August 3rd. The specialty chemicals company reported earnings per share (EPS) of $2.31 for the quarter, falling short of analysts’ consensus estimates of $2.83 by $0.52. Despite this miss in EPS, Westlake maintained a return on equity of 12.44% and a net margin of 9.55%. The company generated revenue amounting to $3.25 billion for the quarter, which was slightly lower than analyst estimates of $3.50 billion. Compared to the same period last year, Westlake experienced a decrease in revenue by 27.5%. It earned $6.60 per share in the previous year’s corresponding quarter.
Several analysts have recently commented on Westlake’s performance and provided ratings and price targets for the stock. BMO Capital Markets raised their price target from $123 to $133 and gave Westlake a “market perform” rating in their report released on August 7th. KeyCorp also raised their price objective from $112 to $115 and rated the stock as “underweight” on August 4th. StockNews.com initiated coverage on Westlake with a “hold” rating on August 17th.
Morgan Stanley reaffirmed an “equal weight” rating and set a price objective of $110 on Westlake’s stock on July 19th. Citigroup also raised their price objective from $129 to $142 and assigned a “neutral” rating to the company on August 9th. Overall, the stock currently has a consensus rating of “Hold” according to Bloomberg, with five analysts recommending selling, ten suggesting holding, and three advocating buying.
As we approach the end of the year, equities research analysts predict that Westlake Co. will post earnings per share of 8.78 for the current year. Investors will likely be keeping a close eye on future developments within the specialty chemicals sector as well as any updates regarding Westlake’s financial performance.
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Recent Developments in Westlake Co: Hedge Funds, Analyst Perspectives, and Insider Transactions
Westlake Co, a specialty chemicals company listed on the New York Stock Exchange (NYSE: WLK), has recently seen modifications in its holdings by several hedge funds and institutional investors. Worth Asset Management LLC, Gyon Technologies Capital Management LP, and Orion Capital Management LLC have all acquired new stakes in Westlake shares. Additionally, First Horizon Advisors Inc. and Exchange Traded Concepts LLC have increased their holdings in the company. Institutional investors and hedge funds now own 28.40% of Westlake’s stock.
On September 14th, NYSE WLK opened at $123.89. The stock has a fifty day moving average of $129.77 and a 200-day moving average of $119.66. With a market capitalization of $15.82 billion, Westlake’s price-to-earnings ratio stands at 12.09 with a beta of 1.31, indicating moderate volatility in comparison to the broader market. Over the past twelve months, Westlake’s stock has traded between $81.29 and $138.39.
Analysts have recently provided their perspective on Westlake’s stock price and performance outlooks. BMO Capital Markets raised their price target from $123 to $133 while giving the company a “market perform” rating on August 7th. Conversely, KeyCorp raised their price objective from $112 to $115 with an “underweight” rating on August 4th.
StockNews.com issued a “hold” rating on August 17h when they began coverage on Westlake’s stock while Morgan Stanley reaffirmed an “equal weight” rating with a price objective of $110 on July 19th.
Citigroup also adjusted their price objective from $129 to $142 alongside a “neutral” rating on August 9th.
Currently, the consensus among investment analysts is that WLK is rated as “Hold” with an average target price of $127.67 according to Bloomberg.
Westlake also recently announced a quarterly dividend, with a payout date on September 12th. Investors of record as of August 25th received a dividend of $0.357 per share. This translates to an annualized dividend of $1.43 and a dividend yield of 1.15%. The company’s payout ratio stands at 19.51%.
In related news, Director David Tsung-Hung Chao sold 1,000 shares of Westlake’s stock on August 23rd, at an average price of $131 per share, totaling $131,000 in transactions. Following the sale, Chao now holds 10,148 shares in the company valued at approximately $1,329,388.
This transaction was disclosed in a document filed with the SEC and is available at the provided hyperlink.
Currently, company insiders hold 74.10% of Westlake’s stock.
With modifications in holdings by hedge funds and institutional investors, along with analyst perspectives on stock outlooks and recent insider transactions, investors can gather crucial information as they evaluate their investment options within Westlake Co.
