Andrew Kenner, a SVP at
Westlake Chemical Partners (WLKP), recently added 4,230 shares to his holdings. The buy increased his position by 3%, and came to a total cost of $93,737.
The buy comes a few weeks after the SVP bought 5,000 shares, increasing his stake by 4% and paying $111,500 to do so. Kenner has also been a repeat and steady buyer in 2023, with over a dozen buys going into late 2022.
Over the past two years, there has been one insider sale from Westlake’s Chairman of the Board, who sold less than 1% of his holdings. Overall, Westlake insiders own 45.2% of shares.
The chemical producer has traded flat over the past year. Earnings slid 15% and revenue growth dropped nearly 20% amid a slowing economy.
However, with the economy potentially avoiding a recession and with inflation declining, Westlake’s fortunes could improve from here.
Action to take: Investors may like shares at current prices, as shares are in a slight uptrend. Westlake trades at less than 15 times earnings, and about two-thirds its price-to-sales ratio.
Plus, as a partnership, investors get a massive 8.5% dividend yield at today’s prices.
For traders, options are limited. However, the November $22.50 calls are an at-the-money trade. Last going for about $1.05, they could see mid-double-digit returns in the months ahead on further rally higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
