Eye On Growth: Andrew Kenner Adds $275K Of Westlake Chemical Stock To Portfolio

Disclosed in the latest SEC filing, a significant insider purchase on August 12, involves Andrew Kenner, SVP at Westlake Chemical WLKP.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Kenner purchased 12,000 shares of Westlake Chemical, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $275,868.

Westlake Chemical's shares are actively trading at $22.61, experiencing a up of 0.62% during Monday's morning session.

Discovering Westlake Chemical: A Closer Look

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.

Financial Milestones: Westlake Chemical's Journey

Revenue Challenges: Westlake Chemical's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.18%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 35.62%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Westlake Chemical's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.41.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.45, caution is advised due to increased financial risk.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.25 is lower than the industry average, implying a discounted valuation for Westlake Chemical's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.68, 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): With a below-average EV/EBITDA ratio of 2.35, Westlake Chemical presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.