Westlake Chemical Partners LP (WLKP) Shares Active after Upgrade at Zacks Investment Research

Westlake Chemical Partners LP (NYSE: WLKP) shares fell back in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.

Analysts at Zacks Investment Research upgraded shares of Westlake Chemical Partners LP (NYSE: WLKP) from Hold to Buy today. With a rating of Buy on the shares, Westlake Chemical Partners LP has a 52-week high of $24.00. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $24.00, above the opening price of $21.05. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Shares of Westlake Chemical Partners LP (NYSE: WLKP) opened at $21.05 yesterday trading between $21.05 and $21.13, and last traded at $21.10, a decrease of $0.30 compared to the previous closing price.

Westlake Chemical Partners LP (NYSE: WLKP) currently has a market cap of 570.90M.

Westlake Chemical Partners LP (NYSE: WLKP) Average Daily Trading Volume

The stock’s average daily volume is 30,756 shares out of a total float 23,460,000 and some 611 shares crossed the trading desk yesterday, 119 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re considering.

Westlake Chemical Partners LP (NYSE: WLKP) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, Westlake Chemical Partners LP (NYSE: WLKP) now has a 50-day MA of $21.20 and 200-day MA of $22.04. It has traded in a 52-week range between $16.00 – 24.0000 and today’s last price is 12.09%% lower than the 52 week high of $24.00.

Earnings growth is an important factor to research when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more for 3 consecutive years.

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