Westlake (NYSE:WLK) Upgraded to “Hold” at Zacks Research

Zacks Research upgraded shares of Westlake (NYSE:WLK) from a strong sell rating to a hold rating in a report released on Tuesday morning,Zacks.com reports. Zacks Research also issued estimates for Westlake’s Q3 2026 earnings at $1.17 EPS, Q4 2026 earnings at $0.37 EPS, FY2026 earnings at $2.78 EPS, Q1 2027 earnings at $0.50 EPS, Q2 2027 earnings at $0.99 EPS, Q3 2027 earnings at $0.34 EPS, Q4 2027 earnings at $0.56 EPS, FY2027 earnings at $2.40 EPS, Q1 2028 earnings at ($0.37) EPS, Q2 2028 earnings at $0.65 EPS and FY2028 earnings at $1.60 EPS.

Several other analysts have also weighed in on the company. Weiss Ratings restated a “sell (d)” rating on shares of Westlake in a report on Friday, July 17th. JPMorgan Chase & Co. raised Westlake from an “underweight” rating to a “neutral” rating and set a $90.00 target price on the stock in a report on Monday, May 18th. Morgan Stanley dropped their price target on shares of Westlake from $106.00 to $92.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 2nd. Bank of America cut their price target on shares of Westlake from $104.00 to $85.00 and set a “neutral” rating for the company in a report on Tuesday, June 30th. Finally, Truist Financial reduced their price objective on shares of Westlake from $127.00 to $104.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Three investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $93.92.

Westlake Price Performance

Shares of NYSE:WLK opened at $74.46 on Tuesday. The stock has a market cap of $9.52 billion, a price-to-earnings ratio of -7.77 and a beta of 0.63. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.45 and a quick ratio of 1.70. Westlake has a 12 month low of $56.33 and a 12 month high of $124.23. The stock’s 50 day moving average price is $76.30 and its 200 day moving average price is $93.22.

Westlake (NYSE:WLK) last issued its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.83 by $0.18. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.The firm had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.24 billion. During the same period last year, the company posted ($1.11) EPS. The firm’s quarterly revenue was up 10.8% on a year-over-year basis. Equities research analysts anticipate that Westlake will post 3.35 earnings per share for the current fiscal year.

Westlake Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th will be paid a dividend of $0.533 per share. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $2.13 annualized dividend and a dividend yield of 2.9%. This is a boost from Westlake’s previous quarterly dividend of $0.53. Westlake’s dividend payout ratio is -22.23%.

Insider Activity

In related news, Chairman Albert Chao sold 38,873 shares of Westlake stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total value of $3,120,724.44. Following the transaction, the chairman directly owned 642,880 shares in the company, valued at $51,610,406.40. The trade was a 5.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Westlake

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Westlake during the 3rd quarter worth about $28,000. Quarry LP purchased a new stake in Westlake during the fourth quarter valued at about $31,000. Fifth Third Bancorp boosted its holdings in shares of Westlake by 71.3% in the fourth quarter. Fifth Third Bancorp now owns 562 shares of the specialty chemicals company’s stock worth $42,000 after buying an additional 234 shares during the period. CIBC Private Wealth Group LLC acquired a new position in shares of Westlake in the third quarter worth about $53,000. Finally, NewEdge Advisors LLC boosted its holdings in shares of Westlake by 49.6% in the second quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company’s stock worth $57,000 after buying an additional 247 shares during the period. Institutional investors and hedge funds own 28.40% of the company’s stock.

Key Headlines Impacting Westlake

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Zacks raised its EPS forecasts for Q1 2027 to $0.50 from $0.43, Q2 2027 to $0.99 from $0.66, Q4 2027 to $0.56 from $0.14, and full-year 2027 to $2.40 from $1.96. The firm also increased its Q2 2028 estimate to $0.65 from $0.35. These revisions suggest some expected improvement in portions of Westlake’s specialty-chemicals business. Westlake analyst estimates
• Positive Sentiment: Recent coverage highlighted Westlake’s stronger quarterly results: the company reported adjusted EPS of $2.01, exceeding the $1.83 consensus estimate, while revenue of $3.27 billion also topped expectations and increased 10.8% year over year. Why Is Westlake in Focus After Stronger Results?
• Neutral Sentiment: Analysts collectively rate Westlake at “Hold,” indicating that improving results are offset by concerns about the broader earnings outlook. Westlake Receives Consensus Hold Recommendation
• Negative Sentiment: Zacks cut its Q3 2027 EPS forecast to $0.34 from $0.73, Q1 2028 to a loss of $0.37 from a loss of $0.02, and FY2028 to $1.60 from $2.00. Its FY2026 estimate of $2.78 is also below the broader full-year consensus of $3.43, reinforcing concerns about profitability.
• Negative Sentiment: Westlake’s valuation backdrop remains challenging: the company recently reported a negative net margin, and its shares remain well below their 200-day moving average. The combination of a “Strong Sell” rating, uneven forward estimates, and cyclical chemical-market risks is likely contributing to the stock’s weakness.

About Westlake

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.