Westlake Sees Unusually Large Options Volume (NYSE:WLK)

Westlake Co. (NYSE:WLK) was the recipient of unusually large options trading activity on Monday. Stock investors bought 11,881 put options on the stock. This is an increase of 1,867% compared to the average volume of 604 put options.

Westlake Price Performance

NYSE:WLK opened at $113.32 on Tuesday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.04 and a current ratio of 2.79. The firm has a market cap of $14.58 billion, a price-to-earnings ratio of 159.61, a P/E/G ratio of 2.31 and a beta of 1.18. Westlake has a 52 week low of $108.95 and a 52 week high of $162.64. The firm’s 50-day simple moving average is $122.17 and its 200 day simple moving average is $135.60.

Westlake (NYSE:WLK) last released its quarterly earnings results on Tuesday, November 5th. The specialty chemicals company reported $1.41 earnings per share for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.80). Westlake had a net margin of 0.81% and a return on equity of 6.93%. The business had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.31 billion. During the same quarter in the previous year, the firm posted $2.20 earnings per share. The firm’s quarterly revenue was up .1% on a year-over-year basis. As a group, sell-side analysts predict that Westlake will post 6.47 earnings per share for the current year.

Westlake Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Tuesday, November 26th were given a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 1.85%. The ex-dividend date was Tuesday, November 26th. Westlake’s payout ratio is currently 295.77%.

Analyst Upgrades and Downgrades

A number of analysts have commented on WLK shares. Bank of America upgraded shares of Westlake from an “underperform” rating to a “neutral” rating and increased their price target for the company from $151.00 to $159.00 in a research note on Wednesday, October 16th. Morgan Stanley reduced their price target on Westlake from $155.00 to $130.00 and set an “equal weight” rating for the company in a report on Monday. StockNews.com upgraded Westlake from a “sell” rating to a “hold” rating in a research note on Tuesday, November 26th. Piper Sandler reduced their target price on Westlake from $155.00 to $135.00 and set an “overweight” rating for the company in a research note on Tuesday, January 7th. Finally, Royal Bank of Canada dropped their price target on Westlake from $170.00 to $167.00 and set an “outperform” rating on the stock in a research note on Monday, November 11th. One research analyst has rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $154.85.

Insiders Place Their Bets

In other news, Director David Tsung-Hung Chao sold 1,750 shares of the stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $129.08, for a total value of $225,890.00. Following the completion of the sale, the director now owns 7,784 shares of the company’s stock, valued at approximately $1,004,758.72. This represents a 18.36 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 74.10% of the company’s stock.

Institutional Investors Weigh In On Westlake

Institutional investors and hedge funds have recently bought and sold shares of the company. Jacobs Levy Equity Management Inc. raised its position in shares of Westlake by 699.1% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 595,149 shares of the specialty chemicals company’s stock valued at $89,445,000 after buying an additional 520,669 shares in the last quarter. Ilex Capital Partners UK LLP acquired a new position in Westlake during the third quarter valued at approximately $55,542,000. 1832 Asset Management L.P. bought a new stake in Westlake during the second quarter worth $27,179,000. Allspring Global Investments Holdings LLC boosted its holdings in shares of Westlake by 90.6% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 386,480 shares of the specialty chemicals company’s stock valued at $58,084,000 after purchasing an additional 183,666 shares in the last quarter. Finally, Bank of Montreal Can increased its stake in shares of Westlake by 3,330.4% in the 2nd quarter. Bank of Montreal Can now owns 150,047 shares of the specialty chemicals company’s stock valued at $23,802,000 after purchasing an additional 145,673 shares during the last quarter. Institutional investors own 28.40% of the company’s stock.

About Westlake

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.