WestRock Company [WRK] stock Downgrade by BofA Securities analyst, price target now $57

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WestRock Company [NYSE: WRK] gained 2.71% on the last trading session, reaching $54.19 price per share at the time. The company report on May 5, 2022 that WestRock Reports Fiscal 2022 Second Quarter Results.

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Record quarterly net sales of $5.4 billion increased 21.3% year-over-year.

Net income of $40 million declined $73 million year-over-year, or 64.5%. Adjusted Net Income of $309 million increased $164 million year-over-year, growing 112.9%.

WestRock Company represents 264.60 million in outstanding shares, while the company has a total market value of $14.39 billion with the latest information. WRK stock price has been found in the range of $53.01 to $54.78.

If compared to the average trading volume of 2.50M shares, WRK reached a trading volume of 3408040 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 WestRock Company [WRK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WRK shares is $58.15 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WRK stock is a recommendation set at 2.20. 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.

BofA Securities have made an estimate for WestRock Company shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 20, 2022. While these analysts kept the previous recommendation, Jefferies dropped their target price from $84 to $54. The new note on the price target was released on November 01, 2021, representing the official price target for WestRock Company stock. Previously, the target price had yet another raise to $47, while Truist analysts kept a Hold rating on WRK stock.

The Average True Range (ATR) for WestRock Company is set at 1.36, with the Price to Sales ratio for WRK stock in the period of the last 12 months amounting to 0.75. The Price to Book ratio for the last quarter was 1.23, with the Price to Cash per share for the same quarter was set at 1.10. Price to Free Cash Flow for WRK in the course of the last twelve months was 19.25 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for WRK stock

WestRock Company [WRK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.42. With this latest performance, WRK shares gained by 15.89% in over the last four-week period, additionally plugging by 11.92% over the last 6 months – not to mention a drop of -9.88% 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 WRK stock in for the last two-week period is set at 71.86, with the RSI for the last a single of trading hit 76.91, and the three-weeks RSI is set at 67.98 for WestRock Company [WRK]. The present Moving Average for the last 50 days of trading for this stock 47.40, while it was recorded at 51.53 for the last single week of trading, and 47.76 for the last 200 days.

WestRock Company [WRK]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and WestRock Company [WRK] shares currently have an operating margin of +7.21 and a Gross Margin at +16.58. WestRock Company’s Net Margin is presently recorded at +4.47.

Return on Total Capital for WRK is now 6.53, given the latest momentum, and Return on Invested Capital for the company is 4.13. Return on Equity for this stock inclined to 7.52, with Return on Assets sitting at 2.89. When it comes to the capital structure of this company, WestRock Company [WRK] has a Total Debt to Total Equity ratio set at 76.35. Additionally, WRK Total Debt to Total Capital is recorded at 43.29, with Total Debt to Total Assets ending up at 30.46. Long-Term Debt to Equity for the company is recorded at 73.38, with the Long-Term Debt to Total Capital now at 41.61.

Reflecting on the efficiency of the workforce at the company, WestRock Company [WRK] managed to generate an average of $16,796 per employee. Receivables Turnover for the company is 7.33 with a Total Asset Turnover recorded at a value of 0.65.WestRock Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.60.

WestRock Company [WRK]: An earnings per share (EPS) analysis

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 WRK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for WestRock Company go to 23.77%.

An analysis of insider ownership at WestRock Company [WRK]

There are presently around $12,530 million, or 89.60% of WRK stock, in the hands of institutional investors. The top three institutional holders of WRK stocks are: VANGUARD GROUP INC with ownership of 30,367,382, which is approximately 0.208% of the company’s market cap and around 1.20% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 21,144,926 shares of the stock with an approximate value of $1.12 billion in WRK stocks shares; and BLACKROCK INC., currently with $1.1 billion in WRK stock with ownership of nearly -0.718% of the company’s market capitalization.

303 institutional holders increased their position in WestRock Company [NYSE:WRK] by around 29,306,427 shares. Additionally, 274 investors decreased positions by around 27,235,472 shares, while 89 investors held positions by with 180,951,060 shares. The mentioned changes placed institutional holdings at 237,492,959 shares, according to the latest SEC report filing. WRK stock had 90 new institutional investments in for a total of 10,958,424 shares, while 69 institutional investors sold positions of 4,447,774 shares during the same period.