WES Should I Buy
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Western Midstream Partners LP (WES) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators suggest a bearish trend, and the financial performance shows declining profitability despite revenue growth. Analysts have lowered price targets, and hedge funds are selling. While the stock offers a high dividend yield, there are no strong positive catalysts or trading signals to justify immediate investment.
The technical indicators are bearish. The MACD is negative and expanding downward, the RSI is neutral at 42.827, and the moving averages show a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading below key resistance levels, with a pivot at 38.895 and resistance at R1: 39.666.
The stock is a high-dividend-yielding asset, which is appealing to investors seeking stable cash flows during uncertain market conditions.
Hedge funds are aggressively selling, with a 2124.68% increase in selling activity over the last quarter. Analysts have lowered price targets, citing lower operating cash flows and reduced capex. The company's financial performance shows a sharp decline in net income (-42.56% YoY) and EPS (-45.88% YoY).
In Q4 2025, revenue increased by 11.09% YoY to $1.03 billion. However, net income dropped by 42.56% YoY to $187.18 million, and EPS fell by 45.88% YoY to 0.46. Gross margin also declined by 5.55% YoY to 73.87.
Analysts have a neutral to bearish stance. Stifel lowered the price target from $43 to $42 and maintained a Hold rating. Wells Fargo reduced the price target from $40 to $39, citing lower operating cash flows and higher cost reductions.
