West Pharmaceutical Services (NYSE:WST) Shares Gap Up on Better-Than-Expected Earnings

Shares of West Pharmaceutical Services, Inc. (NYSE:WST) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $286.44, but opened at $327.50. West Pharmaceutical Services shares last traded at $350.50, with a volume of 288,188 shares traded.

The medical instruments supplier reported $1.85 EPS for the quarter, topping the consensus estimate of $1.51 by $0.34. The firm had revenue of $746.90 million for the quarter, compared to the consensus estimate of $709.62 million. West Pharmaceutical Services had a return on equity of 19.17% and a net margin of 18.25%. The business’s revenue for the quarter was down .1% compared to the same quarter last year. During the same quarter last year, the company earned $2.16 earnings per share.

West Pharmaceutical Services Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 20th. Shareholders of record on Wednesday, November 13th will be given a $0.21 dividend. This is a positive change from West Pharmaceutical Services’s previous quarterly dividend of $0.20. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.27%. The ex-dividend date is Wednesday, November 13th. West Pharmaceutical Services’s dividend payout ratio is presently 11.08%.

Insider Activity

In related news, VP Charles Witherspoon sold 1,029 shares of the company’s stock in a transaction on Monday, August 19th. The shares were sold at an average price of $300.00, for a total value of $308,700.00. Following the completion of the transaction, the vice president now owns 1,478 shares of the company’s stock, valued at approximately $443,400. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. First Trust Direct Indexing L.P. raised its position in shares of West Pharmaceutical Services by 24.2% during the third quarter. First Trust Direct Indexing L.P. now owns 3,511 shares of the medical instruments supplier’s stock valued at $1,054,000 after buying an additional 683 shares during the last quarter. AMI Asset Management Corp grew its stake in West Pharmaceutical Services by 15.1% during the third quarter. AMI Asset Management Corp now owns 184,146 shares of the medical instruments supplier’s stock valued at $55,273,000 after acquiring an additional 24,218 shares in the last quarter. Strategic Wealth Investment Group LLC increased its holdings in West Pharmaceutical Services by 40.5% in the 3rd quarter. Strategic Wealth Investment Group LLC now owns 3,752 shares of the medical instruments supplier’s stock valued at $1,125,000 after acquiring an additional 1,082 shares during the last quarter. Summit Place Financial Advisors LLC lifted its stake in West Pharmaceutical Services by 17.0% in the 3rd quarter. Summit Place Financial Advisors LLC now owns 2,673 shares of the medical instruments supplier’s stock worth $802,000 after purchasing an additional 388 shares in the last quarter. Finally, Clear Harbor Asset Management LLC boosted its holdings in shares of West Pharmaceutical Services by 8.6% during the 3rd quarter. Clear Harbor Asset Management LLC now owns 15,591 shares of the medical instruments supplier’s stock valued at $4,680,000 after purchasing an additional 1,236 shares during the last quarter. 93.90% of the stock is currently owned by institutional investors.

West Pharmaceutical Services Trading Down 6.9 %

The company has a debt-to-equity ratio of 0.03, a current ratio of 2.34 and a quick ratio of 1.68. The stock has a market cap of $22.43 billion, a PE ratio of 40.62, a price-to-earnings-growth ratio of 10.21 and a beta of 1.01. The stock has a 50-day moving average price of $300.51 and a two-hundred day moving average price of $322.27.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.