Westlake (NYSE:WLK) Shares Gap Down - Here's Why

Westlake Co. (NYSE:WLK - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $116.85, but opened at $111.31. Westlake shares last traded at $112.55, with a volume of 157,411 shares traded.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on WLK shares. Wells Fargo & Company dropped their target price on shares of Westlake from $180.00 to $160.00 and set an "overweight" rating for the company in a research report on Wednesday, November 6th. UBS Group upgraded shares of Westlake from a "neutral" rating to a "buy" rating and set a $144.00 target price for the company in a research report on Friday, January 10th. Piper Sandler dropped their target price on shares of Westlake from $155.00 to $135.00 and set an "overweight" rating for the company in a research report on Tuesday, January 7th. Morgan Stanley dropped their target price on shares of Westlake from $155.00 to $130.00 and set an "equal weight" rating for the company in a research report on Monday, January 13th. Finally, Royal Bank of Canada dropped their target price on shares of Westlake from $170.00 to $167.00 and set an "outperform" rating for the company in a research report on Monday, November 11th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $155.79.

Westlake Stock Down 1.5 %

The company has a market cap of $14.12 billion, a P/E ratio of 154.48, a price-to-earnings-growth ratio of 2.41 and a beta of 1.17. The company has a current ratio of 2.79, a quick ratio of 2.04 and a debt-to-equity ratio of 0.41. The firm's 50 day moving average price is $114.44 and its 200-day moving average price is $129.74.

Westlake Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 19th. Investors of record on Tuesday, March 4th will be paid a dividend of $0.525 per share. This represents a $2.10 annualized dividend and a yield of 1.91%. Westlake's payout ratio is 295.77%.

Insider Buying and Selling

In related news, Director David Tsung-Hung Chao sold 1,750 shares of Westlake stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $129.08, for a total transaction of $225,890.00. Following the transaction, the director now owns 7,784 shares of the company's stock, valued at $1,004,758.72. This trade represents a 18.36 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 74.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Blue Trust Inc. lifted its stake in Westlake by 247.7% in the fourth quarter. Blue Trust Inc. now owns 226 shares of the specialty chemicals company's stock valued at $26,000 after buying an additional 161 shares in the last quarter. Allworth Financial LP lifted its stake in Westlake by 6,316.7% in the fourth quarter. Allworth Financial LP now owns 385 shares of the specialty chemicals company's stock valued at $45,000 after buying an additional 379 shares in the last quarter. Transamerica Financial Advisors Inc. lifted its stake in Westlake by 1,668.2% in the fourth quarter. Transamerica Financial Advisors Inc. now owns 389 shares of the specialty chemicals company's stock valued at $45,000 after buying an additional 367 shares in the last quarter. Continuum Advisory LLC lifted its stake in Westlake by 43.2% in the third quarter. Continuum Advisory LLC now owns 318 shares of the specialty chemicals company's stock valued at $48,000 after buying an additional 96 shares in the last quarter. Finally, GAMMA Investing LLC lifted its stake in Westlake by 72.0% in the fourth quarter. GAMMA Investing LLC now owns 523 shares of the specialty chemicals company's stock valued at $60,000 after buying an additional 219 shares in the last quarter. Institutional investors own 28.40% of the company's stock.

Westlake Company Profile

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.