Westlake Corporation (NYSE:WLK) Given Average Rating of “Hold” by Brokerages

Westlake Corporation (NYSE:WLK) has been assigned an average recommendation of “Hold” from the sixteen ratings firms that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating, three have given a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $97.6429.

WLK has been the subject of several recent research reports. Truist Financial cut their price target on Westlake from $127.00 to $104.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Royal Bank Of Canada dropped their price objective on Westlake from $145.00 to $130.00 and set an “outperform” rating for the company in a report on Monday, May 11th. Zacks Research downgraded Westlake from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 21st. Wall Street Zen lowered Westlake from a “hold” rating to a “sell” rating in a report on Sunday, May 3rd. Finally, Morgan Stanley decreased their price target on Westlake from $106.00 to $92.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 2nd.

Hedge Funds Weigh In On Westlake

Several hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Westlake during the 3rd quarter worth approximately $28,000. Quarry LP acquired a new position in Westlake during the fourth quarter valued at approximately $31,000. Fifth Third Bancorp raised its position in Westlake by 71.3% during the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company’s stock valued at $42,000 after purchasing an additional 234 shares in the last quarter. CIBC Private Wealth Group LLC bought a new stake in Westlake during the third quarter worth $53,000. Finally, NewEdge Advisors LLC lifted its stake in Westlake by 49.6% during the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock worth $57,000 after purchasing an additional 247 shares during the last quarter. 28.40% of the stock is owned by institutional investors.

Key Headlines Impacting Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Earnings beat expectations: Westlake reported $2.01 in diluted EPS versus consensus estimates of approximately $1.83–$1.93, compared with a $1.11 loss in the year-ago quarter. Revenue rose 10.8% year over year to $3.27 billion, also slightly ahead of estimates. Westlake Tops Q2 Earnings Estimates
• Positive Sentiment: Major operating rebound: Net income attributable to Westlake was $260 million, compared with a $142 million loss a year earlier, while EBITDA more than doubled year over year to $679 million. The Performance and Essential Materials segment swung to $185 million of operating income from a $318 million loss, helped by 14% higher average selling prices and lower North American natural gas costs. Westlake Second-Quarter Results
• Positive Sentiment: Cost savings and balance-sheet progress: Westlake said its three-pillar profitability plan remains on track to deliver a $600 million operating-income benefit. The company generated $318 million of operating cash flow, reduced debt by about $500 million and returned $99 million through dividends and share repurchases. It also replaced its revolving facility with a new $1.5 billion revolver due in 2031. Westlake Q2 Earnings Presentation
• Neutral Sentiment: The Housing and Infrastructure Products segment benefited from higher pipe and fittings volumes and the ACI acquisition, but operating income declined year over year as pricing and margins weakened. Management also cited slower residential construction, raw-material inflation and continued Middle East-related price and export volatility as risks to future results.
• Neutral Sentiment: An affiliated company, Westlake Chemical Partners LP (NYSE: WLKP), maintained its quarterly distribution at $0.4714 per unit. This is primarily relevant to WLKP investors rather than a direct catalyst for WLK. Westlake Chemical Partners Distribution

Westlake Stock Performance

NYSE WLK opened at $80.24 on Friday. The company has a quick ratio of 1.56, a current ratio of 2.17 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $10.28 billion, a P/E ratio of -6.32 and a beta of 0.63. Westlake has a 12-month low of $56.33 and a 12-month high of $124.23. The firm has a 50-day moving average price of $78.90 and a two-hundred day moving average price of $94.12.

Westlake (NYSE:WLK) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, topping the consensus estimate of $1.83 by $0.18. Westlake had a negative net margin of 14.91% and a negative return on equity of 1.89%. The company had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.24 billion. During the same period last year, the firm earned ($1.11) earnings per share. The business’s revenue for the quarter was up 10.8% on a year-over-year basis. Analysts anticipate that Westlake will post 3.2 earnings per share for the current year.

Westlake Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Wednesday, May 27th were given a dividend of $0.53 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $2.12 annualized dividend and a yield of 2.6%. Westlake’s dividend payout ratio is currently -16.69%.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company’s core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.