Citigroup Cuts Westlake (NYSE:WLK) Price Target to $67.00

Westlake (NYSE:WLK) had its price target decreased by Citigroup from $85.00 to $67.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has a “neutral” rating on the specialty chemicals company’s stock. Citigroup’s price target would suggest a potential upside of 6.66% from the company’s previous close.

Several other brokerages have also weighed in on WLK. The Goldman Sachs Group set a $85.00 target price on shares of Westlake in a research report on Thursday, July 16th. Mizuho decreased their price target on Westlake from $110.00 to $88.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 1st. Truist Financial lowered their price target on Westlake from $127.00 to $104.00 and set a “buy” rating on the stock in a report on Monday, July 20th. UBS Group set a $98.00 price objective on Westlake and gave the company a “buy” rating in a research note on Friday, September 25th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $95.00 price objective (up from $89.00) on shares of Westlake in a report on Thursday, August 6th. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $91.14.

Westlake Price Performance

Shares of Westlake stock traded down $0.57 during trading on Wednesday, reaching $62.82. The company’s stock had a trading volume of 553,119 shares, compared to its average volume of 1,144,971. The business has a 50 day moving average price of $73.88 and a 200-day moving average price of $88.16. Westlake has a 12-month low of $56.33 and a 12-month high of $124.23. The company has a market capitalization of $8.03 billion, a P/E ratio of -6.55 and a beta of 0.63. The company has a quick ratio of 1.70, a current ratio of 2.45 and a debt-to-equity ratio of 0.55.

Westlake (NYSE:WLK) last released its earnings results on Tuesday, August 4th. The specialty chemicals company reported $2.01 EPS for the quarter, beating analysts’ consensus estimates of $1.83 by $0.18. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.24 billion. Westlake had a positive return on equity of 0.93% and a negative net margin of 10.94%.Westlake’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter last year, the company earned ($1.11) earnings per share. As a group, sell-side analysts anticipate that Westlake will post 3.33 EPS for the current year.

Insider Activity

In related news, Chairman Albert Chao sold 38,873 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $80.28, for a total transaction of $3,120,724.44. Following the sale, the chairman owned 642,880 shares of the company’s stock, valued at $51,610,406.40. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Westlake

Several hedge funds have recently modified their holdings of the company. Core Capital Management & Research inc. purchased a new stake in Westlake in the 2nd quarter worth approximately $264,000. Tidal Investments LLC grew its position in shares of Westlake by 59.0% in the second quarter. Tidal Investments LLC now owns 76,055 shares of the specialty chemicals company’s stock valued at $5,552,000 after purchasing an additional 28,235 shares during the period. Engineers Gate Manager LP increased its stake in Westlake by 67.8% in the second quarter. Engineers Gate Manager LP now owns 71,301 shares of the specialty chemicals company’s stock valued at $5,205,000 after purchasing an additional 28,802 shares during the last quarter. IFP Advisors Inc increased its stake in Westlake by 58,450.0% in the second quarter. IFP Advisors Inc now owns 1,171 shares of the specialty chemicals company’s stock valued at $85,000 after purchasing an additional 1,169 shares during the last quarter. Finally, Squarepoint Ops LLC boosted its stake in Westlake by 107.5% in the 2nd quarter. Squarepoint Ops LLC now owns 79,967 shares of the specialty chemicals company’s stock worth $5,838,000 after buying an additional 41,435 shares during the last quarter. 28.40% of the stock is owned by institutional investors and hedge funds.

More Westlake News

Here are the key news stories impacting Westlake this week:

• Positive Sentiment: Closing the Cologne facility is intended to improve Westlake’s European chlorovinyls footprint, reduce exposure to an underperforming market and support profitability over the longer term. Operations are expected to cease in the first quarter. Westlake to Optimize European Chlorovinyls Footprint with Closure of Cologne PVC Plant
• Neutral Sentiment: The closure is part of a broader cost-optimization effort rather than an indication of an immediate improvement in demand. Investors will likely focus on whether capacity reductions translate into stronger margins and cash flow. Westlake to Close Cologne PVC Plant Amid Weak European Market
• Negative Sentiment: Westlake expects to record approximately $205 million in charges related to the shutdown, creating a significant near-term earnings and cash-flow burden. Westlake to Close Cologne PVC Plant and Record $205 Million in Charges
• Negative Sentiment: Management warned of weaker third-quarter performance as unfavorable European market conditions continue to weigh on PVC profitability. The warning, combined with the restructuring charges, explains the negative investor reaction. Westlake Warns of Weaker Q3, Closes German PVC Plant

About Westlake

Westlake Corporation (NYSE: WLK) is a global manufacturer of performance and essential materials used in construction, infrastructure, packaging, healthcare, automotive, and consumer products. Headquartered in Houston, Texas, the company operates through businesses focused on producing chemical building blocks, polymers, and specialty materials.

Its product portfolio includes polyvinyl chloride (PVC), chlor-alkali products such as caustic soda and chlorine, polyethylene, epoxy and specialty resins, and other performance chemicals.