Westlake (NYSE:WLK) Hits New 1-Year Low Following Weak Earnings

Westlake Co. (NYSE:WLK) shares hit a new 52-week low on Monday following a dissappointing earnings announcement. The company traded as low as $106.00 and last traded at $106.52, with a volume of 66819 shares changing hands. The stock had previously closed at $109.71.

The specialty chemicals company reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.98). The business had revenue of $2.84 billion for the quarter, compared to analyst estimates of $3.01 billion. Westlake had a net margin of 0.81% and a return on equity of 6.93%. The company’s revenue for the quarter was up .6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.72 earnings per share.

Westlake Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 19th. Investors of record on Tuesday, March 4th will be given a dividend of $0.525 per share. The ex-dividend date is Tuesday, March 4th. This represents a $2.10 annualized dividend and a dividend yield of 1.87%. Westlake’s dividend payout ratio (DPR) is presently 295.77%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. UBS Group raised shares of Westlake from a “neutral” rating to a “buy” rating and set a $144.00 price objective for the company in a research note on Friday, January 10th. Truist Financial dropped their price target on shares of Westlake from $168.00 to $166.00 and set a “buy” rating for the company in a research report on Tuesday. Piper Sandler decreased their target price on Westlake from $155.00 to $135.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 7th. Royal Bank of Canada decreased their price target on shares of Westlake from $170.00 to $167.00 and set an “outperform” rating for the company in a research report on Monday, November 11th. Finally, Barclays lowered their price objective on Westlake from $175.00 to $135.00 and set an “overweight” rating for the company in a research report on Tuesday. One analyst has rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, Westlake has a consensus rating of “Moderate Buy” and an average target price of $147.21.

Insider Activity

In other Westlake news, Director David Tsung-Hung Chao sold 1,750 shares of the stock in a transaction on Friday, November 29th. The stock was sold at an average price of $129.08, for a total transaction of $225,890.00. Following the completion of the transaction, the director now directly owns 7,784 shares of the company’s stock, valued at approximately $1,004,758.72. This trade represents a 18.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 74.10% of the company’s stock.

Institutional Investors Weigh In On Westlake

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

Westlake Stock Performance

The company has a current ratio of 2.79, a quick ratio of 2.04 and a debt-to-equity ratio of 0.41. The company has a market cap of $14.44 billion, a P/E ratio of 158.02, a P/E/G ratio of 2.36 and a beta of 1.17. The firm’s fifty day moving average price is $113.98 and its 200-day moving average price is $128.88.

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.