David Tsung-Hung Chao, a director at Westlake Corp (NYSE:WLK), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Chao sold 1,750 shares of Westlake's common stock on November 22, 2024, at a price of $130 per share, totaling $227,500. Following this transaction, Chao directly owns 9,534 shares of the company. Additionally, he holds 19,423 shares indirectly through a trust, where he serves as the sole trustee.
In other recent news, Westlake Corporation declared a regular dividend of $0.525 per share for the third quarter of 2024, continuing its tradition of providing returns to shareholders. In the same period, Westlake Chemical (NYSE:WLK) Corporation reported net sales of $3.1 billion and a net income of $183 million, impacted by operational issues and adverse weather conditions. BMO Capital Markets and RBC Capital Markets adjusted their outlook on the company, reducing their price targets while maintaining a Market Perform and Outperform rating respectively.
These recent developments also highlight Westlake Chemical's robust financial position and its strategic focus on cost savings. The company maintains a strong cash position of $2.9 billion and is targeting cost savings of $125 million to $150 million for 2024. Despite the uncertainties in the chlor-alkali market and a softer near-term macroeconomic environment, analysts from BMO Capital expect the company to become more proactive in mergers and acquisitions, leveraging its strong balance sheet.
RBC Capital, on the other hand, sees positive aspects for Westlake Chemical, including the stabilization of Polyethylene Methanol volumes, which are expected to rise in the fourth quarter. The company also anticipates a decrease in interest rates in 2025, which could stimulate demand in the housing market. These are recent developments and are subject to change as the company continues to navigate its industry landscape.
InvestingPro Insights
As we delve deeper into Westlake Corp's financial landscape, recent data from InvestingPro sheds light on the company's current position. Westlake's market capitalization stands at $16.79 billion, reflecting its substantial presence in the chemicals industry. The company's P/E ratio (adjusted) for the last twelve months as of Q3 2024 is 41.84, suggesting investors are willing to pay a premium for Westlake's earnings potential.
Notably, Westlake's revenue for the last twelve months as of Q3 2024 reached $12.12 billion, although it experienced a slight decline of 6.88% compared to the previous period. This context adds depth to David Tsung-Hung Chao's recent stock sale, as it occurred against a backdrop of modest revenue contraction.
InvestingPro Tips highlight additional aspects of Westlake's financial health. One tip notes that Westlake has raised its dividend for 19 consecutive years, demonstrating a commitment to shareholder returns even in challenging market conditions. This is further supported by the company's current dividend yield of 1.61% and a 5% dividend growth over the last twelve months.
Another InvestingPro Tip points out that Westlake's stock price is near its 52-week low, trading at 80.21% of its 52-week high. This information, coupled with the director's recent sale, may prompt investors to closely monitor the stock's performance and potential value proposition.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Westlake Corp, providing a deeper understanding of the company's financial position and market outlook.
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