Westlake (NYSE:WLK) Issues Quarterly Earnings Results

Westlake (NYSE:WLK) announced its earnings results on Tuesday. The specialty chemicals company reported $2.01 EPS for the quarter, topping analysts’ consensus estimates of $1.83 by $0.18, FiscalAI reports. Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. The business had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.24 billion. During the same period in the previous year, the company posted ($1.11) earnings per share. The firm’s revenue was up 10.8% on a year-over-year basis.

Westlake Stock Performance

Shares of WLK stock traded up $6.47 during mid-day trading on Tuesday, reaching $76.36. The stock had a trading volume of 573,493 shares, compared to its average volume of 1,229,673. Westlake has a 1-year low of $56.33 and a 1-year high of $124.23. The firm has a market cap of $9.78 billion, a price-to-earnings ratio of -6.02 and a beta of 0.63. The company has a current ratio of 2.17, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. The business’s fifty day moving average is $79.08 and its 200-day moving average is $94.18.

Westlake Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Wednesday, May 27th were issued a $0.53 dividend. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.8%. Westlake’s dividend payout ratio is currently -16.69%.

Analysts Set New Price Targets

WLK has been the subject of a number of analyst reports. BMO Capital Markets reissued a “market perform” rating and set a $96.00 target price on shares of Westlake in a research report on Monday, July 6th. UBS Group reiterated a “buy” rating and set a $117.00 price objective (down from $130.00) on shares of Westlake in a report on Friday, June 5th. Zacks Research downgraded Westlake from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 21st. Truist Financial decreased their price target on Westlake from $127.00 to $104.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Finally, The Goldman Sachs Group set a $85.00 price target on Westlake in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Westlake presently has an average rating of “Hold” and an average target price of $97.64.

Institutional Trading of Westlake

Several institutional investors and hedge funds have recently bought and sold shares of WLK. Caitong International Asset Management Co. Ltd purchased a new position in shares of Westlake during the third quarter worth $28,000. Quarry LP acquired a new stake in Westlake during the 4th quarter worth about $31,000. CIBC Private Wealth Group LLC acquired a new stake in Westlake during the 3rd quarter worth about $53,000. NewEdge Advisors LLC raised its stake in shares of Westlake by 49.6% during the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock valued at $57,000 after buying an additional 247 shares during the last quarter. Finally, Parallel Advisors LLC lifted its holdings in shares of Westlake by 58.1% in the 3rd quarter. Parallel Advisors LLC now owns 778 shares of the specialty chemicals company’s stock valued at $60,000 after buying an additional 286 shares during the period. 28.40% of the stock is currently owned by institutional investors and hedge funds.

About Westlake

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.