Westlake (NYSE:WLK) Trading Up 9.2% – Should You Buy?

Westlake Corporation (NYSE:WLK) traded up 9.2% during mid-day trading on Thursday . The company traded as high as $81.48 and last traded at $81.2940. 623,071 shares changed hands during trading, a decline of 43% from the average session volume of 1,086,784 shares. The stock had previously closed at $74.47.

Analysts Set New Price Targets

Several brokerages have weighed in on WLK. UBS Group reaffirmed a “buy” rating and set a $92.00 price target (down from $93.00) on shares of Westlake in a research report on Tuesday, December 23rd. Alembic Global Advisors set a $80.00 target price on shares of Westlake in a report on Monday, November 17th. The Goldman Sachs Group set a $78.00 price target on shares of Westlake and gave the stock a “neutral” rating in a report on Friday, October 31st. Weiss Ratings reiterated a “sell (d)” rating on shares of Westlake in a research report on Wednesday, October 8th. Finally, Mizuho set a $88.00 price target on Westlake and gave the stock an “outperform” rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $86.47.

Westlake Stock Performance

The company has a quick ratio of 1.39, a current ratio of 1.99 and a debt-to-equity ratio of 0.39. The firm has a 50-day moving average price of $69.10 and a two-hundred day moving average price of $77.18. The firm has a market cap of $10.67 billion, a PE ratio of -11.21, a P/E/G ratio of 22.72 and a beta of 0.91.

Westlake (NYSE:WLK) last posted its quarterly earnings data on Thursday, October 30th. The specialty chemicals company reported ($0.29) EPS for the quarter, missing the consensus estimate of $0.18 by ($0.47). Westlake had a negative net margin of 8.34% and a negative return on equity of 0.78%. The firm had revenue of $2.84 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same period in the prior year, the company posted $1.41 earnings per share. The firm’s revenue for the quarter was down 9.0% compared to the same quarter last year. Research analysts forecast that Westlake Corporation will post 6.48 EPS for the current fiscal year.

Westlake Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 11th. Stockholders of record on Tuesday, November 25th were paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Tuesday, November 25th. Westlake’s dividend payout ratio (DPR) is currently -28.57%.

Insider Transactions at Westlake

In related news, Chairman Albert Chao sold 40,836 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $73.57, for a total transaction of $3,004,304.52. Following the completion of the sale, the chairman owned 627,722 shares of the company’s stock, valued at approximately $46,181,507.54. This represents a 6.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Westlake

Institutional investors and hedge funds have recently bought and sold shares of the company. Huntington National Bank purchased a new stake in shares of Westlake during the 2nd quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd purchased a new position in Westlake in the third quarter worth approximately $28,000. UMB Bank n.a. increased its stake in Westlake by 107.0% during the second quarter. UMB Bank n.a. now owns 565 shares of the specialty chemicals company’s stock worth $43,000 after acquiring an additional 292 shares during the last quarter. CWM LLC raised its position in Westlake by 54.5% in the second quarter. CWM LLC now owns 567 shares of the specialty chemicals company’s stock valued at $43,000 after purchasing an additional 200 shares during the period. Finally, Signaturefd LLC raised its position in Westlake by 49.9% in the second quarter. Signaturefd LLC now owns 640 shares of the specialty chemicals company’s stock valued at $49,000 after purchasing an additional 213 shares during the period. 28.40% of the stock is currently owned by institutional investors and hedge funds.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.