Lsb Industries (NYSE:LXU) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded LSB Industries (NYSE: LXU) from "strong-buy" to "buy," though the analyst consensus on MarketBeat is a "Hold" with an average price target of $10.92 and recent actions including RBC lifting its target to $13.
• LSB beat the latest quarter with $0.22 EPS versus $0.18 expected and $165.05M in revenue versus $153.88M expected, but sell-side analysts still project the company will post roughly -0.18 EPS for the current year.
• Corporate insiders sold 471,501 shares worth about $4.49M in the past three months (insiders now own 4.3%), while institutional investors hold approximately 73.7% of the stock.

Lsb Industries (NYSE:LXU - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday.

A number of other brokerages have also issued reports on LXU. Royal Bank Of Canada boosted their target price on shares of Lsb Industries from $11.00 to $13.00 and gave the company an "outperform" rating in a research note on Friday, February 27th. UBS Group reaffirmed a "neutral" rating and issued a $9.75 price target (up from $9.50) on shares of Lsb Industries in a research note on Monday, January 12th. Zacks Research lowered shares of Lsb Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, February 2nd. Finally, Weiss Ratings raised shares of Lsb Industries from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Monday, March 2nd. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Lsb Industries currently has an average rating of "Hold" and an average price target of $10.92.

Lsb Industries Price Performance

Shares of LXU stock opened at $13.44 on Friday. Lsb Industries has a 52-week low of $4.88 and a 52-week high of $14.65. The company has a debt-to-equity ratio of 0.85, a quick ratio of 2.61 and a current ratio of 2.78. The firm has a market capitalization of $965.66 million, a P/E ratio of 39.53 and a beta of 0.66. The stock has a 50 day moving average price of $9.92 and a 200 day moving average price of $9.07.

Lsb Industries (NYSE:LXU - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $0.22 EPS for the quarter, beating the consensus estimate of $0.18 by $0.04. Lsb Industries had a return on equity of 4.90% and a net margin of 4.00%.The company had revenue of $165.05 million for the quarter, compared to the consensus estimate of $153.88 million. As a group, sell-side analysts predict that Lsb Industries will post -0.18 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Barry H. Golsen sold 118,953 shares of the firm's stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $9.19, for a total transaction of $1,093,178.07. Following the transaction, the director owned 96,773 shares in the company, valued at approximately $889,343.87. This trade represents a 55.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Kristy Carver sold 19,550 shares of Lsb Industries stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $9.99, for a total value of $195,304.50. Following the completion of the sale, the senior vice president owned 52,613 shares of the company's stock, valued at $525,603.87. The trade was a 27.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 471,501 shares of company stock worth $4,493,971 in the last three months. Corporate insiders own 4.30% of the company's stock.

Institutional Investors Weigh In On Lsb Industries

Large investors have recently modified their holdings of the business. Kestra Advisory Services LLC bought a new position in shares of Lsb Industries during the fourth quarter valued at approximately $29,000. Russell Investments Group Ltd. grew its stake in Lsb Industries by 2,900.0% in the third quarter. Russell Investments Group Ltd. now owns 4,500 shares of the conglomerate's stock valued at $35,000 after purchasing an additional 4,350 shares during the last quarter. Aquatic Capital Management LLC purchased a new position in Lsb Industries in the third quarter valued at about $42,000. Tower Research Capital LLC TRC raised its holdings in Lsb Industries by 90.3% in the second quarter. Tower Research Capital LLC TRC now owns 6,019 shares of the conglomerate's stock worth $47,000 after purchasing an additional 2,856 shares in the last quarter. Finally, Quarry LP bought a new position in Lsb Industries in the third quarter worth about $94,000. Institutional investors own 73.67% of the company's stock.

About Lsb Industries

LSB Industries, Inc NYSE: LXU is an Oklahoma City–based manufacturer of chemical products serving the agricultural, industrial and defense markets. The company operates primarily through two segments: Fertilizer Solutions and Commodities Solutions. Through its Fertilizer Solutions segment, LSB produces primary nitrogen products—including anhydrous ammonia and technical-grade ammonium nitrate—that are sold to fertilizer distributors and agricultural retailers across North America. Its Commodities Solutions segment manufactures and sells nitric acid, sodium nitrate and other nitrate-based compounds for industrial applications such as mining, water treatment and specialty chemical production, as well as defense-related formulations used in munitions and pyrotechnics.

Incorporated in 1969, LSB Industries has grown from a single production site to multiple manufacturing facilities strategically located in the central United States.

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