Wells Fargo & Company Cuts Westlake (NYSE:WLK) Price Target to $68.00

Westlake (NYSE:WLK) had its price objective lowered by Wells Fargo & Company from $89.00 to $68.00 in a research note released on Thursday morning,Benzinga reports. Wells Fargo & Company currently has an equal weight rating on the specialty chemicals company’s stock.

Several other research analysts also recently commented on the company. BMO Capital Markets reaffirmed a “market perform” rating and issued a $96.00 price objective on shares of Westlake in a research note on Monday, July 6th. Citigroup cut their price objective on Westlake from $85.00 to $67.00 and set a “neutral” rating for the company in a research note on Wednesday. Mizuho reduced their target price on shares of Westlake from $110.00 to $88.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. Royal Bank Of Canada reissued an “outperform” rating and issued a $95.00 target price (up from $89.00) on shares of Westlake in a report on Thursday, August 6th. Finally, Zacks Research upgraded shares of Westlake from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 25th. Four analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $87.50.

Westlake Trading Up 1.5%

Shares of WLK stock opened at $63.39 on Thursday. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.45 and a quick ratio of 1.70. The company has a market cap of $8.10 billion, a price-to-earnings ratio of -6.62 and a beta of 0.69. Westlake has a 1 year low of $56.33 and a 1 year high of $124.23. The firm has a fifty day moving average price of $73.12 and a 200-day moving average price of $87.28.

Westlake (NYSE:WLK) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, topping analysts’ consensus estimates of $1.83 by $0.18. The company had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.24 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.Westlake’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period last year, the firm earned ($1.11) EPS. As a group, equities analysts predict that Westlake will post 3.24 earnings per share for the current year.

Westlake Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were given a $0.5330 dividend. The ex-dividend date was Tuesday, August 25th. This is a positive change from Westlake’s previous quarterly dividend of $0.53. This represents a $2.13 annualized dividend and a dividend yield of 3.4%. Westlake’s dividend payout ratio (DPR) is presently -22.23%.

Insider Buying and Selling at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total transaction of $3,120,724.44. Following the completion of the sale, the chairman owned 642,880 shares in the company, valued at approximately $51,610,406.40. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in WLK. Nykredit A S bought a new position in Westlake in the 2nd quarter worth approximately $69,000. Rockefeller Capital Management L.P. raised its position in shares of Westlake by 219.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 955 shares of the specialty chemicals company’s stock valued at $71,000 after buying an additional 656 shares during the last quarter. Transamerica Financial Advisors LLC bought a new stake in shares of Westlake during the second quarter valued at approximately $80,000. IFP Advisors Inc lifted its holdings in shares of Westlake by 58,450.0% in the second quarter. IFP Advisors Inc now owns 1,171 shares of the specialty chemicals company’s stock worth $85,000 after buying an additional 1,169 shares in the last quarter. Finally, Parallel Advisors LLC lifted its holdings in shares of Westlake by 133.8% in the first quarter. Parallel Advisors LLC now owns 830 shares of the specialty chemicals company’s stock worth $97,000 after buying an additional 475 shares in the last quarter. 28.40% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Expansion into roofing: Westlake Royal Building Products agreed to purchase roofing assets to enter the standing-seam roofing market. The move broadens its building-products portfolio and could create new growth opportunities. Westlake Royal Building Products Enters Standing-Seam Roofing Market Through Purchase of Roofing Assets
• Neutral Sentiment: Mixed analyst views: Coverage of Westlake shows conflicting sentiment. Truist retained a “buy” rating despite reducing its target to $90, while Wells Fargo maintained an “equal weight” rating and cut its target to $68. Analysts Have Conflicting Sentiments on These Materials Companies
• Negative Sentiment: Cologne PVC plant closure: Westlake plans to shut its Cologne, Germany, PVC facility and expects to record a substantial charge of approximately $205 million. The closure highlights weak industry conditions and creates a near-term earnings and cash-flow burden. Westlake plans Cologne PVC plant closure, sees $205 million charge
• Negative Sentiment: Broad price-target reductions: Wells Fargo cut its target from $89 to $68 and kept an “equal weight” rating. Mizuho lowered its target from $88 to $72 while retaining a neutral rating, and Citigroup also reduced its target. These revisions indicate analysts see less near-term upside amid difficult chemical-market conditions. Wells Fargo cuts target for Westlake stock Mizuho Cuts Price Target on Westlake

Westlake Company Profile

Westlake Corporation (NYSE: WLK) is a global manufacturer of performance and essential materials used in construction, infrastructure, packaging, healthcare, automotive, and consumer products. Headquartered in Houston, Texas, the company operates through businesses focused on producing chemical building blocks, polymers, and specialty materials.

Its product portfolio includes polyvinyl chloride (PVC), chlor-alkali products such as caustic soda and chlorine, polyethylene, epoxy and specialty resins, and other performance chemicals.