Lsb Industries (NYSE:LXU) Shares Gap Down on Disappointing Earnings

Key Points

• Lsb Industries shares fell sharply, opening at $10.66 versus a prior close of $11.46, after the company reported a quarterly loss of $0.09 per share—$0.42 below analyst expectations.
• Revenue totaled $168.09 million, exceeding the $155.45 million consensus estimate, while the company posted a 7.16% net margin and 8.91% return on equity.
• Analysts maintain a generally cautious outlook, with an average “Hold” rating and a $14.67 average price target; two company insiders also recently sold shares, reducing their holdings by roughly 16.5% each.

Shares of Lsb Industries Inc. (NYSE:LXU - Get Free Report) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $11.46, but opened at $10.66. Lsb Industries shares last traded at $10.8580, with a volume of 150,985 shares traded.

The conglomerate reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.33 by ($0.42). The company had revenue of $168.09 million during the quarter, compared to analyst estimates of $155.45 million. Lsb Industries had a net margin of 7.16% and a return on equity of 8.91%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on LXU. UBS Group set a $16.00 target price on Lsb Industries and gave the company a "neutral" rating in a report on Wednesday, May 13th. Wall Street Zen cut Lsb Industries from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 12th. Weiss Ratings reissued a "hold (c)" rating on shares of Lsb Industries in a report on Tuesday, July 21st. Finally, Royal Bank Of Canada dropped their price objective on Lsb Industries from $15.00 to $13.00 and set a "sector perform" rating for the company in a research report on Friday, July 17th. Five research analysts have rated the stock with a Hold rating, According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $14.67.

Insiders Place Their Bets

In other news, Director Lynn F. White sold 40,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $11.80, for a total value of $472,000.00. Following the completion of the transaction, the director directly owned 202,489 shares in the company, valued at approximately $2,389,370.20. This represents a 16.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Kristy Carver sold 9,554 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $12.38, for a total value of $118,278.52. Following the sale, the senior vice president directly owned 47,452 shares in the company, valued at approximately $587,455.76. This trade represents a 16.76% decrease in their position. The SEC filing for this sale provides additional information. 3.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Lsb Industries

A number of hedge funds have recently made changes to their positions in LXU. Kestra Advisory Services LLC acquired a new position in shares of Lsb Industries in the fourth quarter valued at approximately $29,000. Russell Investments Group Ltd. boosted its position in Lsb Industries by 2,900.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 4,500 shares of the conglomerate's stock worth $35,000 after buying an additional 4,350 shares during the period. Aquatic Capital Management LLC bought a new stake in Lsb Industries during the 3rd quarter worth approximately $42,000. Tower Research Capital LLC TRC grew its holdings in Lsb Industries by 90.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,019 shares of the conglomerate's stock worth $47,000 after acquiring an additional 2,856 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV bought a new stake in Lsb Industries during the 4th quarter worth approximately $97,000. 73.67% of the stock is owned by institutional investors and hedge funds.

Lsb Industries Stock Performance

The company has a current ratio of 3.07, a quick ratio of 2.85 and a debt-to-equity ratio of 0.81. The company's 50-day simple moving average is $11.70 and its 200-day simple moving average is $12.29. The stock has a market capitalization of $778.46 million, a price-to-earnings ratio of 17.18 and a beta of 0.34.

Lsb Industries Company Profile

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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