West Pharmaceutical Services (NYSE:WST) Shares Gap Up on Better-Than-Expected Earnings

West Pharmaceutical Services, Inc. (NYSE:WST) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $286.44, but opened at $327.50. West Pharmaceutical Services shares last traded at $350.50, with a volume of 288,188 shares.

The medical instruments supplier reported $1.85 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.34. West Pharmaceutical Services had a return on equity of 19.17% and a net margin of 18.25%. The company had revenue of $746.90 million for the quarter, compared to analysts’ expectations of $709.62 million. During the same period in the prior year, the firm earned $2.16 earnings per share. The firm’s revenue for the quarter was down .1% on a year-over-year basis.

West Pharmaceutical Services Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 20th. Investors of record on Wednesday, November 13th will be paid a dividend of $0.21 per share. The ex-dividend date is Wednesday, November 13th. This represents a $0.84 annualized dividend and a yield of 0.27%. This is a positive change from West Pharmaceutical Services’s previous quarterly dividend of $0.20. West Pharmaceutical Services’s payout ratio is presently 11.08%.

Insider Activity

In related news, VP Charles Witherspoon sold 1,029 shares of the firm’s stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $300.00, for a total transaction of $308,700.00. Following the completion of the transaction, the vice president now owns 1,478 shares of the company’s stock, valued at $443,400. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WST. First Trust Direct Indexing L.P. lifted its holdings in shares of West Pharmaceutical Services by 24.2% during the 3rd quarter. First Trust Direct Indexing L.P. now owns 3,511 shares of the medical instruments supplier’s stock valued at $1,054,000 after buying an additional 683 shares during the period. AMI Asset Management Corp lifted its holdings in West Pharmaceutical Services by 15.1% in the third quarter. AMI Asset Management Corp now owns 184,146 shares of the medical instruments supplier’s stock valued at $55,273,000 after acquiring an additional 24,218 shares during the period. Strategic Wealth Investment Group LLC boosted its position in West Pharmaceutical Services by 40.5% in the third quarter. Strategic Wealth Investment Group LLC now owns 3,752 shares of the medical instruments supplier’s stock worth $1,125,000 after purchasing an additional 1,082 shares during the last quarter. Summit Place Financial Advisors LLC grew its stake in shares of West Pharmaceutical Services by 17.0% during the 3rd quarter. Summit Place Financial Advisors LLC now owns 2,673 shares of the medical instruments supplier’s stock valued at $802,000 after purchasing an additional 388 shares during the period. Finally, Clear Harbor Asset Management LLC grew its stake in shares of West Pharmaceutical Services by 8.6% during the 3rd quarter. Clear Harbor Asset Management LLC now owns 15,591 shares of the medical instruments supplier’s stock valued at $4,680,000 after purchasing an additional 1,236 shares during the period. Institutional investors own 93.90% of the company’s stock.

West Pharmaceutical Services Stock Down 6.9 %

The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.68 and a current ratio of 2.34. The stock has a market cap of $22.43 billion, a PE ratio of 40.62, a price-to-earnings-growth ratio of 10.21 and a beta of 1.01. The company’s 50-day moving average price is $300.51 and its 200 day moving average price is $322.27.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.