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

West Pharmaceutical Services, Inc. (NYSE:WST) gapped up before the market opened on Thursday following a stronger than expected earnings report. 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 traded.

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

West Pharmaceutical Services Increases Dividend

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

Insider Buying and Selling

In related news, VP Charles Witherspoon sold 1,029 shares of the business’s stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $300.00, for a total value of $308,700.00. Following the transaction, the vice president now owns 1,478 shares in the company, valued at approximately $443,400. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. LGT Group Foundation acquired a new stake in West Pharmaceutical Services during the second quarter valued at approximately $68,854,000. Liontrust Investment Partners LLP acquired a new stake in West Pharmaceutical Services during the second quarter valued at approximately $64,196,000. Findlay Park Partners LLP raised its stake in West Pharmaceutical Services by 30.6% during the first quarter. Findlay Park Partners LLP now owns 597,106 shares of the medical instruments supplier’s stock valued at $236,281,000 after buying an additional 139,800 shares in the last quarter. Iron Triangle Partners LP acquired a new stake in West Pharmaceutical Services during the first quarter valued at approximately $47,381,000. Finally, ProShare Advisors LLC raised its stake in West Pharmaceutical Services by 13.9% during the first quarter. ProShare Advisors LLC now owns 500,662 shares of the medical instruments supplier’s stock valued at $198,117,000 after buying an additional 61,247 shares in the last quarter. Institutional investors and hedge funds own 93.90% of the company’s stock.

West Pharmaceutical Services Price Performance

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

About West Pharmaceutical Services

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.