Westlake (NYSE:WLK) Sets New 52-Week Low Following Weak Earnings

Shares of Westlake Co. (NYSE:WLK) hit a new 52-week low during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $106.00 and last traded at $106.52, with a volume of 66819 shares changing hands. The stock had previously closed at $109.71.

The specialty chemicals company reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.98). Westlake had a return on equity of 6.93% and a net margin of 0.81%. The firm had revenue of $2.84 billion during the quarter, compared to analysts’ expectations of $3.01 billion. During the same period in the previous year, the firm earned $0.72 EPS. The firm’s quarterly revenue was up .6% on a year-over-year basis.

Westlake Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 19th. Stockholders of record on Tuesday, March 4th will be issued a dividend of $0.525 per share. The ex-dividend date is Tuesday, March 4th. This represents a $2.10 annualized dividend and a dividend yield of 1.87%. Westlake’s dividend payout ratio is presently 295.77%.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Wells Fargo & Company reduced their target price on Westlake from $160.00 to $130.00 and set an “overweight” rating on the stock in a research report on Tuesday. StockNews.com upgraded shares of Westlake from a “sell” rating to a “hold” rating in a research note on Tuesday, November 26th. Citigroup raised shares of Westlake from a “neutral” rating to a “buy” rating and dropped their target price for the stock from $152.00 to $140.00 in a research report on Wednesday, December 18th. UBS Group upgraded shares of Westlake from a “neutral” rating to a “buy” rating and set a $144.00 price target on the stock in a research note on Friday, January 10th. Finally, Barclays cut their target price on Westlake from $175.00 to $135.00 and set an “overweight” rating on the stock in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $147.21.

Insiders Place Their Bets

In other Westlake news, Director David Tsung-Hung Chao sold 1,750 shares of the company’s stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $129.08, for a total value of $225,890.00. Following the completion of the transaction, the director now owns 7,784 shares in the company, valued at approximately $1,004,758.72. This represents a 18.36 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 74.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Westlake

Institutional investors and hedge funds have recently modified their holdings of the business. Thrivent Financial for Lutherans boosted its position in Westlake by 1.1% during the third quarter. Thrivent Financial for Lutherans now owns 7,855 shares of the specialty chemicals company’s stock worth $1,181,000 after purchasing an additional 89 shares in the last quarter. Treasurer of the State of North Carolina lifted its position in shares of Westlake by 0.6% during the 4th quarter. Treasurer of the State of North Carolina now owns 14,742 shares of the specialty chemicals company’s stock valued at $1,690,000 after buying an additional 90 shares in the last quarter. Continuum Advisory LLC lifted its position in shares of Westlake by 43.2% during the 3rd quarter. Continuum Advisory LLC now owns 318 shares of the specialty chemicals company’s stock valued at $48,000 after buying an additional 96 shares in the last quarter. Oppenheimer & Co. Inc. grew its stake in Westlake by 3.8% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 2,624 shares of the specialty chemicals company’s stock valued at $394,000 after acquiring an additional 97 shares during the period. Finally, Nissay Asset Management Corp Japan ADV increased its holdings in Westlake by 2.2% in the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 4,877 shares of the specialty chemicals company’s stock worth $557,000 after acquiring an additional 104 shares in the last quarter. Hedge funds and other institutional investors own 28.40% of the company’s stock.

Westlake Price Performance

The company has a quick ratio of 2.04, a current ratio of 2.79 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $14.44 billion, a price-to-earnings ratio of 158.02, a PEG ratio of 2.36 and a beta of 1.17. The stock’s 50-day simple moving average is $113.98 and its two-hundred day simple moving average is $128.88.

Westlake Company Profile

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.