Westlake (NYSE:WLK) Reaches New 12-Month Low on Disappointing Earnings

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

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

Westlake Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of brokerages have commented on WLK. BMO Capital Markets dropped their price objective on shares of Westlake from $171.00 to $165.00 and set a “market perform” rating for the company in a research note on Wednesday, November 13th. Wells Fargo & Company lowered their price target on shares of Westlake from $160.00 to $130.00 and set an “overweight” rating for the company in a report on Tuesday. UBS Group raised Westlake from a “neutral” rating to a “buy” rating and set a $144.00 price objective on the stock in a research note on Friday, January 10th. Bank of America decreased their price objective on Westlake from $134.00 to $116.00 and set a “neutral” rating on the stock in a research report on Tuesday. Finally, Morgan Stanley dropped their target price on Westlake from $155.00 to $130.00 and set an “equal weight” rating for the company in a report on Monday, January 13th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, Westlake currently has a consensus rating of “Moderate Buy” and a consensus target price of $147.21.

Insider Transactions at Westlake

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 transaction, the director now directly owns 7,784 shares in the company, valued at $1,004,758.72. This represents a 18.36 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 74.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WLK. Blue Trust Inc. grew its holdings in Westlake by 247.7% during the 4th quarter. Blue Trust Inc. now owns 226 shares of the specialty chemicals company’s stock worth $26,000 after acquiring an additional 161 shares in the last quarter. Allworth Financial LP increased its holdings in Westlake by 6,316.7% during the fourth quarter. Allworth Financial LP now owns 385 shares of the specialty chemicals company’s stock valued at $45,000 after buying an additional 379 shares during the period. Transamerica Financial Advisors Inc. raised its stake in Westlake by 1,668.2% in the fourth quarter. Transamerica Financial Advisors Inc. now owns 389 shares of the specialty chemicals company’s stock worth $45,000 after buying an additional 367 shares in the last quarter. Continuum Advisory LLC lifted its holdings in Westlake by 43.2% during the third quarter. Continuum Advisory LLC now owns 318 shares of the specialty chemicals company’s stock worth $48,000 after buying an additional 96 shares during the period. Finally, GAMMA Investing LLC boosted its position in Westlake by 72.0% during the 4th quarter. GAMMA Investing LLC now owns 523 shares of the specialty chemicals company’s stock valued at $60,000 after acquiring an additional 219 shares in the last quarter. 28.40% of the stock is currently owned by hedge funds and other institutional investors.

Westlake Price Performance

The firm has a market capitalization of $14.44 billion, a PE ratio of 158.02, a P/E/G ratio of 2.36 and a beta of 1.17. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.04 and a current ratio of 2.79. The stock has a fifty day moving average price of $113.98 and a 200-day moving average price of $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.