Westlake (NYSE:WLK) Shares Gap Down on Disappointing Earnings

Shares of Westlake Co. (NYSE:WLK) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $131.48, but opened at $125.41. Westlake shares last traded at $131.44, with a volume of 42,468 shares changing hands.

The specialty chemicals company reported $1.41 earnings per share for the quarter, missing the consensus estimate of $2.21 by ($0.80). Westlake had a return on equity of 7.84% and a net margin of 2.27%. The business had revenue of $3.12 billion for the quarter, compared to analyst estimates of $3.31 billion. During the same quarter last year, the company posted $2.20 EPS. Westlake’s quarterly revenue was up .1% on a year-over-year basis.

Westlake Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Tuesday, August 20th were given a $0.525 dividend. The ex-dividend date was Tuesday, August 20th. This represents a $2.10 dividend on an annualized basis and a yield of 1.53%. This is an increase from Westlake’s previous quarterly dividend of $0.50. Westlake’s dividend payout ratio (DPR) is presently 100.96%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on WLK shares. Mizuho started coverage on shares of Westlake in a report on Thursday, August 8th. They issued an “outperform” rating and a $170.00 target price for the company. Piper Sandler dropped their target price on shares of Westlake from $180.00 to $170.00 and set an “overweight” rating for the company in a report on Thursday, September 5th. UBS Group dropped their target price on shares of Westlake from $160.00 to $144.00 and set a “neutral” rating for the company in a report on Wednesday. StockNews.com cut shares of Westlake from a “hold” rating to a “sell” rating in a report on Thursday, September 19th. Finally, Royal Bank of Canada dropped their price objective on shares of Westlake from $174.00 to $170.00 and set an “outperform” rating for the company in a research note on Friday, October 11th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $162.92.

Institutional Trading of Westlake

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Advisors Asset Management Inc. lifted its holdings in Westlake by 1.7% in the 1st quarter. Advisors Asset Management Inc. now owns 5,554 shares of the specialty chemicals company’s stock worth $849,000 after buying an additional 91 shares in the last quarter. Oppenheimer & Co. Inc. lifted its holdings in Westlake by 3.8% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 2,624 shares of the specialty chemicals company’s stock worth $394,000 after buying an additional 97 shares in the last quarter. Daiwa Securities Group Inc. increased its position in shares of Westlake by 3.8% in the 2nd quarter. Daiwa Securities Group Inc. now owns 2,724 shares of the specialty chemicals company’s stock worth $394,000 after purchasing an additional 100 shares during the last quarter. DekaBank Deutsche Girozentrale increased its position in shares of Westlake by 3.4% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 3,518 shares of the specialty chemicals company’s stock worth $532,000 after purchasing an additional 116 shares during the last quarter. Finally, CIBC Asset Management Inc increased its position in shares of Westlake by 4.1% in the 3rd quarter. CIBC Asset Management Inc now owns 3,911 shares of the specialty chemicals company’s stock worth $588,000 after purchasing an additional 153 shares during the last quarter. 28.40% of the stock is owned by hedge funds and other institutional investors.

Westlake Price Performance

The company’s 50-day moving average price is $140.71 and its two-hundred day moving average price is $146.30. The company has a market cap of $17.63 billion, a P/E ratio of 65.93, a P/E/G ratio of 1.83 and a beta of 1.19. The company has a current ratio of 2.61, a quick ratio of 1.94 and a debt-to-equity ratio of 0.41.

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.