Stock Analysis

LSB Industries Executive Vice President of Manufacturing John Burns Sells 26% Of Holding

NYSE:LXU
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Anyone interested in LSB Industries, Inc. (NYSE:LXU) should probably be aware that the Executive Vice President of Manufacturing, John Burns, recently divested US$307k worth of shares in the company, at an average price of US$9.25 each. That sale was 26% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for LSB Industries

The Last 12 Months Of Insider Transactions At LSB Industries

Notably, that recent sale by John Burns 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$8.66. 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).

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:LXU Insider Trading Volume May 7th 2024

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Insider Ownership Of LSB Industries

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. LSB Industries insiders own about US$164m worth of shares (which is 26% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At LSB Industries Tell Us?

An insider sold LSB Industries shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LSB Industries. At Simply Wall St, we've found that LSB Industries has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.