Citigroup Has Lowered Expectations for Westlake (NYSE:WLK) Stock Price

Westlake (NYSE:WLK) had its price target dropped by equities researchers at Citigroup from $85.00 to $67.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a “neutral” rating on the specialty chemicals company’s stock. Citigroup’s price objective points to a potential upside of 6.66% from the stock’s previous close.

A number of other research firms also recently commented on WLK. Wells Fargo & Company cut their price objective on Westlake from $110.00 to $89.00 and set an “equal weight” rating on the stock in a report on Wednesday, August 5th. Weiss Ratings restated a “sell (d)” rating on shares of Westlake in a report on Friday, July 17th. BMO Capital Markets reaffirmed a “market perform” rating and set a $96.00 price target on shares of Westlake in a research report on Monday, July 6th. Wall Street Zen raised shares of Westlake from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, UBS Group set a $98.00 target price on shares of Westlake and gave the company a “buy” rating in a research note on Friday, September 25th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $91.14.

Westlake Trading Down 0.9%

Shares of WLK traded down $0.57 during mid-day trading on Wednesday, reaching $62.82. The company had a trading volume of 553,119 shares, compared to its average volume of 1,144,971. Westlake has a fifty-two week low of $56.33 and a fifty-two week high of $124.23. The firm has a fifty day simple moving average of $73.88 and a 200-day simple moving average of $88.16. The stock has a market cap of $8.03 billion, a price-to-earnings ratio of -6.55 and a beta of 0.63. 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 issued its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share for the quarter, topping the consensus estimate of $1.83 by $0.18. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.The business had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.24 billion. During the same period last year, the company posted ($1.11) EPS. The business’s quarterly revenue was up 10.8% on a year-over-year basis. On average, sell-side analysts anticipate that Westlake will post 3.33 EPS for the current fiscal year.

Insider Transactions at Westlake

In related news, Chairman Albert Chao sold 38,873 shares of Westlake stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $80.28, for a total transaction of $3,120,724.44. Following the sale, the chairman owned 642,880 shares of the company’s stock, valued at $51,610,406.40. The trade was a 5.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.40% of the stock is owned by company insiders.

Institutional Trading of Westlake

Large investors have recently modified their holdings of the business. Core Capital Management & Research inc. acquired a new position in shares of Westlake in the second quarter worth about $264,000. Tidal Investments LLC grew its stake in Westlake by 59.0% during the 2nd quarter. Tidal Investments LLC now owns 76,055 shares of the specialty chemicals company’s stock valued at $5,552,000 after purchasing an additional 28,235 shares in the last quarter. Engineers Gate Manager LP increased its holdings in Westlake by 67.8% during the 2nd 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 position in shares of Westlake by 58,450.0% in the 2nd 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 position in shares of Westlake by 107.5% in the 2nd 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 and hedge funds.

Key Stories Impacting Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Closing the Cologne facility is intended to improve Westlake’s European chlorovinyls footprint, reduce exposure to an underperforming market and support profitability over the longer term. Operations are expected to cease in the first quarter. Westlake to Optimize European Chlorovinyls Footprint with Closure of Cologne PVC Plant
• Neutral Sentiment: The closure is part of a broader cost-optimization effort rather than an indication of an immediate improvement in demand. Investors will likely focus on whether capacity reductions translate into stronger margins and cash flow. Westlake to Close Cologne PVC Plant Amid Weak European Market
• Negative Sentiment: Westlake expects to record approximately $205 million in charges related to the shutdown, creating a significant near-term earnings and cash-flow burden. Westlake to Close Cologne PVC Plant and Record $205 Million in Charges
• Negative Sentiment: Management warned of weaker third-quarter performance as unfavorable European market conditions continue to weigh on PVC profitability. The warning, combined with the restructuring charges, explains the negative investor reaction. Westlake Warns of Weaker Q3, Closes German PVC Plant

About Westlake

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.