The stock of Westlake Chemical Corporation (NYSE:WLK) is now priced at $52.64 and the shares are 1.56 points up or 3.05% higher compared to its previous closing price of $51.08. The stock had 545527 contracts set over the past session. WLK shares’ daily volume is compared to its average trading volume at 706658 shares. However, it has a float of 34.14 million and although its performance was -2.91% over the week, it’s one to watch. Analysts have given the WLK stock a yearly average price target of $50.56 per share. It means the stock’s downside potential is -3.95% with the WLK share price recently placing at $50.79 to $52.67. However, some brokerage firms have priced the stock below the average, including one that has called $30.
The shorts are running away from the Westlake Chemical Corporation stock, with the latest data on short interest released on June 15, 2020, showing that short interest numbers in the WLK shares have declined. Short interest in the stock represents just 10.84% of its float, but the volume has dropped by 0. The volume of shorted shares dropped to from shares over the last two weeks. The average intraday trading volume has been shares, which means that days to cover moved to roughly.
In the last trading session, Westlake Chemical Corporation (NYSE:WLK) dropped by -$1.58 over the week and gained $1.27 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $75.65. The stock recorded its established 52-week high on 11/08/19.
Since 03/16/20, the stock has traded to a low of $28.99 at 81.58%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.72. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Westlake Chemical Corporation’s two-week RSI is 51.4. This suggests that the stock is neutral at the moment and that WLK shares’ price movement remains stable. The stochastic readings are equally revealing at 25.13% meaning the WLK share price is currently in overbought territory.
The technical chart shows that the WLK stock will likely settle at between $53.28 and $53.91 per share. However, if the stock dips below $51.4, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $50.15.
Currently, the stock is trading in the red of MACD, with a reading of -1.16. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Wells Fargo raised their recommendation for WLK from Equal Weight to Overweight in June 11 review. JP Morgan analysts downgraded their recommendation of the stock from Overweight to Neutral while keeping its target price at $40 in a flash note released to investors on March 27. KeyBanc Capital Markets analysts see the stock as Sector Weight when the analysts initiated the share price coverage on March 26.
The average rating for the WLK equity is 2.8 and is currently gathering a bullish momentum. Of 20 analysts tracking Westlake Chemical Corporation polled by Reuters, 12 rated WLK as a hold. The remaining 8 analysts were split evenly. However, the split wasn’t equal as a majority (6) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the WLK stock price is 22.9X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 13.7below the group’s average of 29.4. Westlake Chemical Corporation has its P/E ratio at 1.1, which means that the stock is currently trading at a discount relative to the 3.3 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Westlake Chemical Corporation (NYSE:WLK) will decrease by about -13.56%, which will see them reach $1670 million. The company’s full-year revenues are, however, expected to diminish by about -11.58%, down from $8120 million to $7180 million. WLK’s expected adjusted earnings should drop almost -101.08% to end up at -$0.01 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -59.82% to record $1.31/share.