LSB Industries Insider Sellers Miss The Bus As Stock Jumps 10%

Last week, LSB Industries, Inc.'s (NYSE:LXU) stock jumped 10%, but insiders who sold US$307k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$9.25, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At LSB Industries

The insider, John Burns, made the biggest insider sale in the last 12 months. That single transaction was for US$307k worth of shares at a price of US$9.25 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$5.65. So it may not shed much light on insider confidence at current levels. John Burns was the only individual insider to sell shares in the last twelve months.

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

See our latest analysis for LSB Industries

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Does LSB Industries Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. LSB Industries insiders own about US$101m 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.

So What Does This Data Suggest About LSB Industries Insiders?

It doesn't really mean much that no insider has traded LSB Industries shares in the last quarter. While we feel good about high insider ownership of LSB Industries, we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for LSB Industries.

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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.