BofA Securities has recently resumed Western Midstream Partners LP (WES) stock to Underperform rating, as announced on October 17, 2024, according to Finviz. Earlier, on September 16, 2024, Morgan Stanley had reduced the stock rating, setting a price target of $42. Stifel also reduced Hold rating with a price target of $39. Additionally, Wolfe Research raised Peer Perform rating on April 18, 2024. Raymond James analysts, in their report published on March 19, 2024, also reduced Mkt Perform rating for Western Midstream Partners LP’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Western Midstream Partners LP (WES) Stock Trading Recap
On Monday, Western Midstream Partners LP (WES) stock saw a decline, ending the day at $38.32 which represents a decrease of $-0.40 or -1.03% from the prior close of $38.72. The stock opened at $38.87 and touched a low of $38.12 during the day, reaching a high of $39. The volume of shares traded was 1.46 million exceeding the average volume of 1.25 million.
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WES Stock Performance and Moving Averages
In recent trading, Western Midstream Partners LP (WES) stock price has shown some volatility, fluctuating -2.84% over the last five trades and -1.11% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 7.31%, and it has plunged by -8.91% in the previous three months. Currently, WES is trading at -1.50%, -0.67%, and 5.94% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, WES, a Energy sector stock, is trading -10.47% below its 52-week high but remains 44.66% above its 52-week low. The Average True Range (ATR) (14 days) of 0.75 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Western Midstream Partners LP’s Profitability and Valuation Ratios
Western Midstream Partners LP’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 43.20% and a profit margin of 43.23%, with a gross margin of 7.31%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Western Midstream Partners LP’s market capitalization stands at $14.58 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 9.89, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.37. Additionally, the Price-to-Sales Ratio is 4.25, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.44, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 44.63% of Western Midstream Partners LP (WES)’s shares, while financial institutions hold 38.76%.
Notable insider trades include OCCIDENTAL PETROLEUM CORP /DE/, 10% Owner at Western Midstream Partners LP (WES), who sold 19500000 shares on Aug 14 ’24, at $35.75 each, totaling $697.13 million. On Aug 14 ’24, OCCIDENTAL PETROLEUM CORP /DE/, 10% Owner, sold 19500000 shares for $35.75 each, amounting to $697.13 million.
