Today’s Market Runner: Westlake Chemical Corporation Gap Up Today Means Lower Risks Forward

Today's Market Runner: Westlake Chemical Corporation Gap Up Today Means Lower Risks Forward

The stock of Westlake Chemical Corporation (NYSE:WLK) gapped up by $0.02 today and has $80.79 target or 51.00% above today’s $53.50 share price. The 7 months technical chart setup indicates low risk for the $7.07B company. The gap was reported on Oct, 1 by Barchart.com. If the $80.79 price target is reached, the company will be worth $3.61B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 1.44% or $0.76 on September 30, hitting $53.5. About 1.63 million shares traded hands or 48.18% up from the average. Westlake Chemical Corporation (NYSE:WLK) has risen 24.07% since February 29, 2016 and is uptrending. It has outperformed by 13.65% the S&P500.

Analysts await Westlake Chemical Corporation (NYSE:WLK) to report earnings on November, 1. They expect $1.01 earnings per share, down 19.84% or $0.25 from last year’s $1.26 per share. WLK’s profit will be $133.47M for 13.24 P/E if the $1.01 EPS becomes a reality. After $1.21 actual earnings per share reported by Westlake Chemical Corporation for the previous quarter, Wall Street now forecasts -16.53% negative EPS growth.

Westlake Chemical Corporation (NYSE:WLK) Ratings Coverage

Out of 8 analysts covering Westlake Chemical (NYSE:WLK), 6 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 75% are positive. Westlake Chemical has been the topic of 18 analyst reports since July 24, 2015 according to StockzIntelligence Inc. RBC Capital Markets upgraded the stock to “Outperform” rating in Tuesday, August 23 report. As per Wednesday, June 15, the company rating was upgraded by Suntrust Robinson. The rating was downgraded by Goldman Sachs to “Neutral” on Monday, August 10. The rating was maintained by Cowen & Co on Monday, June 13 with “Outperform”. The rating was initiated by Nomura with “Neutral” on Friday, July 24. The firm has “Sector Perform” rating by RBC Capital Markets given on Monday, June 13. The stock of Westlake Chemical Corporation (NYSE:WLK) earned “Overweight” rating by JP Morgan on Tuesday, August 16. The rating was maintained by RBC Capital Markets with “Outperform” on Wednesday, August 5. The rating was downgraded by RBC Capital Markets on Thursday, November 5 to “Sector Perform”. The stock of Westlake Chemical Corporation (NYSE:WLK) has “Buy” rating given on Wednesday, June 15 by SunTrust.

According to Zacks Investment Research, “Westlake Chemical Corporation is a vertically integrated international manufacturer and supplier of petrochemicals, polymers and fabricated products. The company’s range of products includes ethylene, polyethylene, styrene, vinyl intermediates, PVC, PVC Pipe, PVC windows, fence and decking components.”

Insitutional Activity: The institutional sentiment decreased to 0.65 in Q2 2016. Its down 0.66, from 1.31 in 2016Q1. The ratio is negative, as 59 funds sold all Westlake Chemical Corporation shares owned while 89 reduced positions. 36 funds bought stakes while 60 increased positions. They now own 35.76 million shares or 12.15% less from 40.71 million shares in 2016Q1.
Lucus Advsrs Lc reported 8,146 shares or 0.29% of all its holdings. Cibc Markets accumulated 16,871 shares or 0% of the stock. Northern Trust Corporation, a Illinois-based fund reported 216,943 shares. Rs Mgmt Company Ltd Company holds 0.03% of its portfolio in Westlake Chemical Corporation (NYSE:WLK) for 66,881 shares. Winfield Associate reported 10 shares or 0% of all its holdings. First Allied Advisory Services Inc accumulated 0.05% or 22,581 shares. Old Mutual Investors (Uk) Limited has 0.16% invested in the company for 200,245 shares. Schwab Charles Inv holds 0.01% of its portfolio in Westlake Chemical Corporation (NYSE:WLK) for 134,193 shares. Pnc Services Inc reported 1,715 shares or 0% of all its holdings. The Ohio-based Johnson Counsel has invested 0.01% in Westlake Chemical Corporation (NYSE:WLK). Moreover, Virginia Retirement Sys Et Al has 0.05% invested in Westlake Chemical Corporation (NYSE:WLK) for 84,500 shares. Amp Capital Investors Ltd holds 0.03% of its portfolio in Westlake Chemical Corporation (NYSE:WLK) for 92,720 shares. Btg Pactual Glob Asset Mgmt has 0.69% invested in the company for 14,875 shares. Timber Hill Limited Liability Corp holds 0% of its portfolio in Westlake Chemical Corporation (NYSE:WLK) for 5,686 shares. Moreover, Point72 Asia (Hong Kong) Ltd has 0.07% invested in Westlake Chemical Corporation (NYSE:WLK) for 1,500 shares.

Insider Transactions: Since August 23, 2016, the stock had 0 buys, and 1 sale for $1.60 million net activity. $1.60M worth of shares were sold by Mangieri George J on Tuesday, August 23.

More notable recent Westlake Chemical Corporation (NYSE:WLK) news were published by: Benzinga.com which released: “Goldman Reinstate Coverage On Westlake Chemical, Sees 3% Downside” on September 30, 2016, also Wsj.com with their article: “Westlake Chemical to Buy Axiall, Winning Takeover Battle” published on June 10, 2016, Prnewswire.com published: “Westlake Chemical Corporation Announces Fourth Quarter and Full Year 2015 Earnings” on February 23, 2016. More interesting news about Westlake Chemical Corporation (NYSE:WLK) were released by: Bizjournals.com and their article: “Westlake Chemical sets closing date for Axiall acquisition” published on August 18, 2016 as well as Businesswire.com‘s news article titled: “Westlake Chemical Corporation Announces Second Quarter 2016 Earnings” with publication date: July 28, 2016.

WLK Company Profile

Westlake Chemical Corporation, incorporated on September 3, 1991, is a vertically integrated global maker and marketer of basic chemicals, vinyls, polymers and building products. The Company’s products include a range of chemicals, which are fundamental to various diverse consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, residential and commercial construction, as well as other durable and non-durable goods. The Firm operates in two divisions: Olefins and Vinyls. The Firm is also an integrated producer of vinyls with substantial downstream integration into polyvinyl chloride (PVC) building products.

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