Citigroup Cuts Westlake (NYSE:WLK) Price Target to $67.00

Westlake (NYSE:WLK) had its price objective cut by Citigroup from $85.00 to $67.00 in a report issued on Wednesday morning,Benzinga reports. They currently have a neutral rating on the specialty chemicals company’s stock.

WLK has been the topic of a number of other reports. Mizuho dropped their price objective on shares of Westlake from $110.00 to $88.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. The Goldman Sachs Group set a $85.00 price target on Westlake in a research report on Thursday, July 16th. Morgan Stanley dropped their price target on Westlake from $106.00 to $92.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 2nd. Zacks Research upgraded Westlake from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 25th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Westlake in a research note on Friday, July 17th. Four investment 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’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $87.50.

Westlake Stock Performance

Shares of Westlake stock opened at $63.39 on Wednesday. The company has a 50 day moving average price of $73.12 and a 200 day moving average price of $87.28. The firm has a market capitalization of $8.10 billion, a P/E ratio of -6.62 and a beta of 0.69. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55. Westlake has a 52 week low of $56.33 and a 52 week high of $124.23.

Westlake (NYSE:WLK) last released 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 negative net margin of 10.94% and a positive return on equity of 0.93%. The company had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.24 billion. During the same quarter in the previous year, the firm earned ($1.11) EPS. Westlake’s revenue was up 10.8% compared to the same quarter last year. Sell-side analysts expect that Westlake will post 3.33 EPS for the current year.

Westlake Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.5330 per share. This is a positive change from Westlake’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.13 annualized dividend and a dividend yield of 3.4%. Westlake’s payout ratio is presently -22.23%.

Insider Buying and Selling

In related news, Chairman Albert Chao sold 38,873 shares of the firm’s 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 in the company, valued at approximately $51,610,406.40. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On Westlake

Several hedge funds have recently modified their holdings of WLK. BlackRock Inc. purchased a new stake in shares of Westlake in the second quarter valued at approximately $240,474,000. Capital World Investors purchased a new position in shares of Westlake during the 4th quarter valued at approximately $160,548,000. Brandes Investment Partners LP lifted its position in shares of Westlake by 7.9% during the 4th quarter. Brandes Investment Partners LP now owns 1,670,327 shares of the specialty chemicals company’s stock valued at $123,505,000 after buying an additional 121,633 shares in the last quarter. Erste Asset Management GmbH grew its stake in Westlake by 61.5% in the 4th quarter. Erste Asset Management GmbH now owns 420,000 shares of the specialty chemicals company’s stock valued at $31,055,000 after acquiring an additional 160,000 shares during the period. Finally, Engineers Gate Manager LP acquired a new stake in Westlake in the 4th quarter valued at $21,388,000. 28.40% of the stock is owned by hedge funds and other 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

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.