Truist Financial Cuts Westlake (NYSE:WLK) Price Target to $90.00

Westlake (NYSE:WLK) had its target price reduced by Truist Financial from $104.00 to $90.00 in a research note issued to investors on Thursday morning,Benzinga reports. Truist Financial currently has a buy rating on the specialty chemicals company’s stock.

A number of other research firms have also commented on WLK. Mizuho cut their price target on Westlake from $110.00 to $88.00 and set a “neutral” rating for the company in a report on Wednesday, July 1st. Bank of America decreased their price objective on Westlake from $104.00 to $85.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 30th. Zacks Research raised Westlake from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 25th. Wall Street Zen upgraded Westlake from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Morgan Stanley reduced their target price on Westlake from $106.00 to $92.00 and set an “equal weight” rating for the company in a report on Thursday, July 2nd. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Westlake presently has an average rating of “Hold” and a consensus price target of $87.50.

Westlake Stock Performance

Shares of WLK stock opened at $63.39 on Thursday. The firm’s 50 day moving average is $73.12 and its 200 day moving average is $87.28. The stock has a market capitalization of $8.10 billion, a P/E ratio of -6.62 and a beta of 0.69. Westlake has a 12 month low of $56.33 and a 12 month high of $124.23. The company has a current ratio of 2.45, a quick ratio of 1.70 and a debt-to-equity ratio of 0.55.

Westlake (NYSE:WLK) last released its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share for the quarter, beating analysts’ consensus estimates of $1.83 by $0.18. Westlake had a negative net margin of 10.94% and a positive return on equity of 0.93%. The business had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.24 billion. During the same period in the previous year, the business earned ($1.11) EPS. Westlake’s revenue was up 10.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Westlake will post 3.24 earnings per share for the current year.

Westlake Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a $0.5330 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This is an increase 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 payout ratio is currently -22.23%.

Insider Transactions at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of the business’s 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 transaction, the chairman directly owned 642,880 shares in the company, valued at $51,610,406.40. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Westlake

A number of institutional investors have recently added to or reduced their stakes in the business. Core Capital Management & Research inc. bought a new stake in shares of Westlake during the 2nd quarter valued at about $264,000. Tidal Investments LLC increased its position in shares of Westlake by 59.0% in the second quarter. Tidal Investments LLC now owns 76,055 shares of the specialty chemicals company’s stock worth $5,552,000 after purchasing an additional 28,235 shares during the last quarter. Engineers Gate Manager LP increased its position in shares of Westlake by 67.8% in the second quarter. Engineers Gate Manager LP now owns 71,301 shares of the specialty chemicals company’s stock worth $5,205,000 after purchasing an additional 28,802 shares during the last quarter. IFP Advisors Inc raised its stake in Westlake by 58,450.0% in the second quarter. IFP Advisors Inc now owns 1,171 shares of the specialty chemicals company’s stock valued at $85,000 after purchasing an additional 1,169 shares in the last quarter. Finally, Squarepoint Ops LLC raised its stake in Westlake by 107.5% in the second quarter. Squarepoint Ops LLC now owns 79,967 shares of the specialty chemicals company’s stock valued at $5,838,000 after purchasing an additional 41,435 shares in the last quarter. 28.40% of the stock is currently owned by institutional investors.

Westlake News Roundup

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.