LyondellBasell Industries Independent Non-Executive Director Acquires 35% More Stock

Investors who take an interest in LyondellBasell Industries N.V. (NYSE:LYB) should definitely note that the Independent Non-Executive Director, Michael Hanley, recently paid US$72.05 per share to buy US$270k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 35%.

See our latest analysis for LyondellBasell Industries

The Last 12 Months Of Insider Transactions At LyondellBasell Industries

In the last twelve months, the biggest single sale by an insider was when the Executive Vice President of Operational Excellence & HSE, Dale Friedrichs, sold US$481k worth of shares at a price of US$96.78 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$73.66. So it may not tell us anything about how insiders feel about the current share price. Dale Friedrichs was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$650k for 8.75k shares. On the other hand they divested 4.97k shares, for US$481k. Overall, LyondellBasell Industries insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

LyondellBasell Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does LyondellBasell Industries Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of LyondellBasell Industries shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The LyondellBasell Industries Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest LyondellBasell Industries insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for LyondellBasell Industries you should be aware of.

Of course LyondellBasell Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.