Westlake (NYSE:WLK) Hits New 1-Year Low – What’s Next?

Westlake Corporation (NYSE:WLK)’s stock price hit a new 52-week low on Wednesday . The stock traded as low as $65.38 and last traded at $65.78, with a volume of 931399 shares changing hands. The stock had previously closed at $66.78.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Morgan Stanley decreased their target price on Westlake from $98.00 to $90.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 6th. Wells Fargo & Company increased their target price on Westlake from $76.00 to $90.00 and gave the company an “equal weight” rating in a research note on Monday, July 14th. BMO Capital Markets restated a “market perform” rating and set a $83.00 target price (down previously from $91.00) on shares of Westlake in a research note on Tuesday. The Goldman Sachs Group set a $78.00 target price on Westlake and gave the company a “neutral” rating in a research note on Friday, October 31st. Finally, Truist Financial set a $90.00 price objective on Westlake and gave the stock a “buy” rating in a research report on Monday, October 13th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $88.07.

Westlake Stock Performance

The company has a current ratio of 2.47, a quick ratio of 1.75 and a debt-to-equity ratio of 0.43. The stock has a fifty day moving average price of $80.44 and a 200-day moving average price of $80.60. The firm has a market capitalization of $8.44 billion, a price-to-earnings ratio of -124.11 and a beta of 0.95.

Westlake (NYSE:WLK) last issued its earnings results on Thursday, October 30th. The specialty chemicals company reported ($0.29) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.47). Westlake had a positive return on equity of 1.26% and a negative net margin of 0.57%.The company had revenue of $2.84 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same period in the previous year, the company posted $1.41 earnings per share. The company’s quarterly revenue was down 9.0% on a year-over-year basis. As a group, analysts anticipate that Westlake Corporation will post 6.48 earnings per share for the current fiscal year.

Westlake Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Tuesday, August 19th were issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend was Tuesday, August 19th. This is a boost from Westlake’s previous quarterly dividend of $0.47. Westlake’s payout ratio is currently -28.57%.

Institutional Investors Weigh In On Westlake

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. boosted its position in shares of Westlake by 11.8% in the 2nd quarter. PNC Financial Services Group Inc. now owns 1,433 shares of the specialty chemicals company’s stock worth $109,000 after purchasing an additional 151 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in Westlake by 0.6% during the second quarter. The Manufacturers Life Insurance Company now owns 28,134 shares of the specialty chemicals company’s stock worth $2,136,000 after acquiring an additional 165 shares in the last quarter. Peterson Wealth Services lifted its holdings in Westlake by 2.8% during the first quarter. Peterson Wealth Services now owns 6,578 shares of the specialty chemicals company’s stock worth $658,000 after acquiring an additional 178 shares in the last quarter. Police & Firemen s Retirement System of New Jersey lifted its holdings in shares of Westlake by 4.1% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 5,020 shares of the specialty chemicals company’s stock valued at $381,000 after purchasing an additional 198 shares in the last quarter. Finally, CWM LLC lifted its holdings in shares of 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 in the last quarter. 28.40% of the stock is owned by institutional investors and hedge funds.

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products.