Have Insiders Sold LSB Industries Shares Recently?

Anyone interested in LSB Industries, Inc. (NYSE:LXU) should probably be aware that the Independent Director, Barry Golsen, recently divested US$316k worth of shares in the company, at an average price of US$9.14 each. However, the silver lining is that the sale only reduced their total holding by 6.0%, so we're hesitant to read anything much into it, on its own.

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LSB Industries Insider Transactions Over The Last Year

Notably, that recent sale by Barry Golsen is the biggest insider sale of LSB Industries shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$8.99. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for LSB Industries

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Insider Ownership Of LSB Industries

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that LSB Industries insiders own 26% of the company, worth about US$161m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The LSB Industries Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that LSB Industries has 1 warning sign and it would be unwise to ignore this.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.