Smart Money Move: Andrew Kenner Grabs $60K Worth Of Westlake Chemical Stock

A notable insider purchase on August 14, was reported by Andrew Kenner, SVP at Westlake Chemical WLKP, based on the most recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Kenner increased their investment in Westlake Chemical by purchasing 2,692 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $60,914.

Westlake Chemical's shares are actively trading at $22.33, experiencing a down of 0.58% during Wednesday's morning session.

All You Need to Know About Westlake Chemical

Westlake Chemical Partners LP is a part of the chemical industry in the United States. Its operations are conducted through OpCo, it acquires and develop ethyelene production facilities, which convert ethane into ethylene. OpCo sells ethylene and its co-products such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen to Westlake and other customers located in the United States. Its assets include three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana.

Westlake Chemical: Financial Performance Dissected

Positive Revenue Trend: Examining Westlake Chemical's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.57% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 35.62%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Westlake Chemical exhibits below-average bottom-line performance with a current EPS of 0.41.

Debt Management: Westlake Chemical's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.45, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Westlake Chemical's P/E ratio of 13.95 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.67, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 2.32 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Unmasking the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Westlake Chemical's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.