The stock of Westlake Corporation (NYSE: WLK) has increased by 0.22 when compared to last closing price of 117.70.Despite this, the company has seen a gain of 7.20% in its stock price over the last five trading days. seekingalpha.com reported 2025-01-16 that Westlake Chemical Partners offers a high dividend and is fairly priced, driven by steady ethylene demand and strong financial performance. Q3’24 results showed increased earnings due to higher ethylene prices and production volumes, with a solid balance sheet and covered dividends. Risks include dependency on Westlake Corporation and industry shifts away from ethylene, though mitigated by long-term agreements and market growth projections.
Is It Worth Investing in Westlake Corporation (NYSE: WLK) Right Now?
Westlake Corporation (NYSE: WLK) has a price-to-earnings ratio of 166.07x that is above its average ratio. Additionally, the 36-month beta value for WLK is 1.17. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 3 rating it as “overweight,” 8 rating it as “hold,” and 0 rating it as “sell.”
The public float for WLK is 33.53M and currently, short sellers hold a 4.83% ratio of that float. The average trading volume of WLK on January 20, 2025 was 567.18K shares.
WLK’s Market Performance
WLK stock saw an increase of 7.20% in the past week, with a monthly gain of 0.18% and a quarterly increase of -17.01%. The volatility ratio for the week is 2.05%, and the volatility levels for the last 30 days are 2.12% for Westlake Corporation (WLK). The simple moving average for the past 20 days is 3.49% for WLK’s stock, with a -16.20% simple moving average for the past 200 days.
Analysts’ Opinion of WLK
Many brokerage firms have already submitted their reports for WLK stocks, with UBS repeating the rating for WLK by listing it as a “Buy.” The predicted price for WLK in the upcoming period, according to UBS is $144 based on the research report published on January 10, 2025 of the current year 2025.
Citigroup, on the other hand, stated in their research note that they expect to see WLK reach a price target of $140, previously predicting the price at $152. The rating they have provided for WLK stocks is “Buy” according to the report published on December 18th, 2024.
BofA Securities gave a rating of “Neutral” to WLK, setting the target price at $159 in the report published on October 16th of the previous year.
WLK Trading at -3.13% from the 50-Day Moving Average
After a stumble in the market that brought WLK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.47% of loss for the given period.
Volatility was left at 2.12%, however, over the last 30 days, the volatility rate increased by 2.05%, as shares surge +0.36% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.28% lower at present.
During the last 5 trading sessions, WLK rose by +7.20%, which changed the moving average for the period of 200-days by -23.14% in comparison to the 20-day moving average, which settled at $113.98. In addition, Westlake Corporation saw 2.89% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at WLK starting from Chao David Tsung-Hung, who sale 1,750 shares at the price of $129.08 back on Nov 29 ’24. After this action, Chao David Tsung-Hung now owns 7,784 shares of Westlake Corporation, valued at $225,888 using the latest closing price.
Chao David Tsung-Hung, the Director of Westlake Corporation, proposed sale 1,750 shares at $133.00 during a trade that took place back on Nov 26 ’24, which means that Chao David Tsung-Hung is holding shares at $232,750 based on the most recent closing price.
Stock Fundamentals for WLK
Current profitability levels for the company are sitting at:
- 0.06 for the present operating margin
- 0.14 for the gross margin
The net margin for Westlake Corporation stands at 0.01. The total capital return value is set at 0.04. Equity return is now at value 0.90, with 0.45 for asset returns.
Based on Westlake Corporation (WLK), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.27. The debt to equity ratio resting at 0.5. The interest coverage ratio of the stock is 4.73.
Currently, EBITDA for the company is 1.96 billion with net debt to EBITDA at 1.67. When we switch over and look at the enterprise to sales, we see a ratio of 1.45. The receivables turnover for the company is 6.91for trailing twelve months and the total asset turnover is 0.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.79.
Conclusion
In conclusion, Westlake Corporation (WLK) has seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
