Westlake (NYSE:WLK) Rating Lowered to Strong Sell at Zacks Research

Westlake (NYSE:WLK) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other equities analysts also recently issued research reports about the company. Weiss Ratings reissued a “sell (d)” rating on shares of Westlake in a research report on Friday, July 17th. Bank of America cut their price objective on Westlake from $104.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday, June 30th. JPMorgan Chase & Co. upgraded Westlake from an “underweight” rating to a “neutral” rating and set a $90.00 target price for the company in a research note on Monday, May 18th. Mizuho decreased their target price on Westlake from $110.00 to $88.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. Finally, Citigroup dropped their price target on Westlake from $95.00 to $85.00 and set a “neutral” rating on the stock in a research note on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $97.64.

Westlake Stock Performance

Shares of WLK opened at $77.10 on Tuesday. The company has a market cap of $9.88 billion, a PE ratio of -6.07 and a beta of 0.62. The firm has a 50-day moving average of $81.80 and a 200-day moving average of $94.58. Westlake has a one year low of $56.33 and a one year high of $124.23. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.17 and a quick ratio of 1.56.

Westlake (NYSE:WLK) last issued its earnings results on Tuesday, May 5th. The specialty chemicals company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.67). Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. The firm had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.79 billion. During the same period in the previous year, the company posted ($0.31) earnings per share. The firm’s revenue for the quarter was down 6.8% compared to the same quarter last year. As a group, equities analysts forecast that Westlake will post 3.27 earnings per share for the current year.

Hedge Funds Weigh In On Westlake

A number of hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP raised its position in shares of Westlake by 7,239.1% in the fourth quarter. Wellington Management Group LLP now owns 4,220,717 shares of the specialty chemicals company’s stock valued at $312,080,000 after buying an additional 4,163,207 shares in the last quarter. Capital World Investors bought a new stake in shares of Westlake in the fourth quarter valued at approximately $160,548,000. Dimensional Fund Advisors LP grew its position in Westlake by 45.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,885,678 shares of the specialty chemicals company’s stock worth $139,431,000 after buying an additional 585,438 shares in the last quarter. Vanguard Group Inc. grew its position in Westlake by 13.9% during the fourth quarter. Vanguard Group Inc. now owns 3,917,329 shares of the specialty chemicals company’s stock worth $289,647,000 after buying an additional 477,698 shares in the last quarter. Finally, Orbis Allan Gray Ltd increased its stake in Westlake by 12.1% during the 4th quarter. Orbis Allan Gray Ltd now owns 4,386,635 shares of the specialty chemicals company’s stock worth $324,348,000 after acquiring an additional 472,224 shares during the period. 28.40% of the stock is owned by institutional investors.

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.