Western Midstream Partners LP [NYSE: WES] gained 4.39% or 0.76 points to close at $18.06 with a heavy trading volume of 3130809 shares. The company report on March 23, 2021 that Western Midstream Announces Pricing Of Upsized Secondary Public Offering Of Common Units.
Western Midstream Partners, LP (NYSE: WES) (“WES”) announced the pricing of the previously announced underwritten secondary public offering of 10,000,000 common units representing limited partner interests in WES (“Common Units”) by an affiliate of Occidental Petroleum Corporation (the “Selling Unitholder”), for gross proceeds of $173.5 million. The offering was upsized from a previously announced offering size of 8,000,000 Common Units. The offering is expected to close on March 25, 2021, subject to customary closing conditions.
The Selling Unitholder has granted BofA Securities, as the underwriter, a 30-day option to purchase up to 1,500,000 additional Common Units from the Selling Unitholder at the public offering price less underwriting discounts and commissions. WES is not selling any Common Units in the offering and will not receive any proceeds from the sale of Common Units in the offering.
It opened the trading session at $17.58, the shares rose to $18.265 and dropped to $17.51, the range by which the price of stock traded the whole day. The daily chart for WES points out that the company has recorded 136.70% gains over the past six months. However, it is still -522.76% lower than its most recent low trading price.
If we look at the average trading volume of 1.92M shares, WES reached to a volume of 3130809 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Western Midstream Partners LP [WES]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WES shares is $20.53 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WES stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
JP Morgan have made an estimate for Western Midstream Partners LP shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 12, 2021. The new note on the price target was released on February 01, 2021, representing the official price target for Western Midstream Partners LP stock. Previously, the target price had yet another raise to $16, while BofA Securities analysts kept a Neutral rating on WES stock. On January 12, 2021, analysts increased their price target for WES shares from 16 to 19.
The Average True Range (ATR) for Western Midstream Partners LP is set at 1.01, with the Price to Sales ratio for WES stock in the period of the last 12 months amounting to 2.64. The Price to Book ratio for the last quarter was 2.70, with the Price to Cash per share for the same quarter was set at 1.10. Price to Free Cash Flow for WES in the course of the last twelve months was 14.11 with Quick ratio for the last quarter at 1.00.
Trading performance analysis for WES stock
Western Midstream Partners LP [WES] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.28. With this latest performance, WES shares gained by 8.53% in over the last four-week period, additionally plugging by 136.70% over the last 6 months – not to mention a rise of 334.13% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WES stock in for the last two-week period is set at 49.79, with the RSI for the last a single of trading hit 46.32, and the three-weeks RSI is set at 52.15 for Western Midstream Partners LP [WES]. The present Moving Average for the last 50 days of trading for this stock 17.09, while it was recorded at 18.03 for the last single week of trading, and 12.19 for the last 200 days.
Western Midstream Partners LP [WES]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Western Midstream Partners LP [WES] shares currently have an operating margin of +41.77 and a Gross Margin at +50.57. Western Midstream Partners LP’s Net Margin is presently recorded at +20.24.
Return on Total Capital for WES is now 9.64, given the latest momentum, and Return on Invested Capital for the company is 4.83. Return on Equity for this stock inclined to 17.32, with Return on Assets sitting at 4.27. When it comes to the capital structure of this company, Western Midstream Partners LP [WES] has a Total Debt to Total Equity ratio set at 285.88. Additionally, WES Total Debt to Total Capital is recorded at 74.09, with Total Debt to Total Assets ending up at 66.72. Long-Term Debt to Equity for the company is recorded at 269.84, with the Long-Term Debt to Total Capital now at 69.93.
Reflecting on the efficiency of the workforce at the company, Western Midstream Partners LP [WES] managed to generate an average of $493,692 per employee. Receivables Turnover for the company is 6.86 with a Total Asset Turnover recorded at a value of 0.21.Western Midstream Partners LP’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.
Western Midstream Partners LP [WES]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Western Midstream Partners LP posted -0.57/share EPS, while the average EPS was predicted by analysts to be reported at 0.51/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -211.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Western Midstream Partners LP go to -3.70%.
An analysis of insider ownership at Western Midstream Partners LP [WES]
There are presently around $2,835 million, or 37.60% of WES stock, in the hands of institutional investors. The top three institutional holders of WES stocks are: ALPS ADVISORS INC with ownership of 25,376,955, which is approximately 4.911% of the company’s market cap and around 51.70% of the total institutional ownership; INVESCO LTD., holding 21,340,971 shares of the stock with an approximate value of $385.42 million in WES stocks shares; and TORTOISE CAPITAL ADVISORS, L.L.C., currently with $236.25 million in WES stock with ownership of nearly 3.384% of the company’s market capitalization.
Positions in Western Midstream Partners LP stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 81 institutional holders increased their position in Western Midstream Partners LP [NYSE:WES] by around 16,323,600 shares. Additionally, 90 investors decreased positions by around 19,915,862 shares, while 30 investors held positions by with 120,740,761 shares. The mentioned changes placed institutional holdings at 156,980,223 shares, according to the latest SEC report filing. WES stock had 34 new institutional investments in for a total of 3,841,885 shares, while 27 institutional investors sold positions of 1,150,149 shares during the same period.