LyondellBasell Industries (NYSE:LYB) Shares Gap Down - Here's What Happened

Key Points

• LyondellBasell shares gapped down 10.5% — the stock opened at $72.64 after closing at $80.26 and was last trading around $69.27 on heavy volume.
• Analysts are mixed and the consensus is "Hold" — broker actions range from upgrades (RBC, Vertical, Wells Fargo) to sell reiterations (Weiss, Goldman), with an average target price of $68.17.
• Weak quarterly results and dividend risk, plus insider selling — the company reported a ($0.26) EPS and negative net margin, paid a $0.69 quarterly dividend (3.8% yield) but shows a -118% payout ratio, and a major shareholder sold 384,548 shares (~$26.2M).

LyondellBasell Industries N.V. (NYSE:LYB - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $80.26, but opened at $72.64. LyondellBasell Industries shares last traded at $69.2730, with a volume of 4,120,954 shares traded.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Weiss Ratings reiterated a "sell (d+)" rating on shares of LyondellBasell Industries in a research note on Thursday, January 22nd. Vertical Research upgraded shares of LyondellBasell Industries from a "hold" rating to a "buy" rating and set a $75.00 target price for the company in a research note on Monday, March 9th. Royal Bank Of Canada upgraded shares of LyondellBasell Industries from a "sector perform" rating to an "outperform" rating and boosted their target price for the stock from $51.00 to $82.00 in a research note on Monday, March 9th. Wells Fargo & Company boosted their target price on shares of LyondellBasell Industries from $70.00 to $87.00 and gave the stock an "equal weight" rating in a research note on Monday, March 30th. Finally, The Goldman Sachs Group reiterated a "sell" rating on shares of LyondellBasell Industries in a research note on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $68.17.

LyondellBasell Industries Stock Down 10.5%

The business's fifty day moving average price is $64.77 and its 200 day moving average price is $52.85. The company has a quick ratio of 1.20, a current ratio of 1.77 and a debt-to-equity ratio of 1.20. The firm has a market capitalization of $23.15 billion, a PE ratio of -30.78, a PEG ratio of 0.46 and a beta of 0.40.

LyondellBasell Industries (NYSE:LYB - Get Free Report) last announced its earnings results on Saturday, February 21st. The specialty chemicals company reported ($0.26) EPS for the quarter. LyondellBasell Industries had a negative net margin of 2.46% and a positive return on equity of 4.93%. The business had revenue of $7.09 billion during the quarter. On average, equities research analysts forecast that LyondellBasell Industries N.V. will post 6.31 earnings per share for the current fiscal year.

LyondellBasell Industries Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 9th. Shareholders of record on Monday, March 2nd were given a dividend of $0.69 per share. This represents a $2.76 annualized dividend and a yield of 3.8%. The ex-dividend date was Monday, March 2nd. LyondellBasell Industries's dividend payout ratio is presently -118.45%.

Insiders Place Their Bets

In other LyondellBasell Industries news, major shareholder Ai Investments Holdings Llc sold 384,548 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $68.13, for a total transaction of $26,199,255.24. Following the transaction, the insider directly owned 5,270,918 shares in the company, valued at approximately $359,107,643.34. This represents a 6.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.14% of the company's stock.

Institutional Trading of LyondellBasell Industries

Large investors have recently modified their holdings of the business. Capital A Wealth Management LLC grew its position in shares of LyondellBasell Industries by 6,314.3% in the second quarter. Capital A Wealth Management LLC now owns 449 shares of the specialty chemicals company's stock valued at $26,000 after purchasing an additional 442 shares during the last quarter. Parvin Asset Management LLC acquired a new stake in shares of LyondellBasell Industries in the second quarter valued at approximately $26,000. Stance Capital LLC purchased a new position in shares of LyondellBasell Industries during the third quarter valued at approximately $27,000. Quent Capital LLC purchased a new position in shares of LyondellBasell Industries during the third quarter valued at approximately $29,000. Finally, Clearstead Advisors LLC lifted its stake in shares of LyondellBasell Industries by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 668 shares of the specialty chemicals company's stock valued at $29,000 after buying an additional 390 shares during the period. 71.20% of the stock is currently owned by institutional investors and hedge funds.

LyondellBasell Industries Company Profile

LyondellBasell Industries N.V. NYSE: LYB is a global chemical company headquartered in Houston, Texas, that specializes in the production of polyolefins and advanced polymers. Through its extensive portfolio, the company supplies raw materials for a wide range of end markets, including packaging, automotive, construction, electronics and consumer goods. By combining proprietary process technologies with expertise in catalysts, LyondellBasell aims to deliver value-added solutions that enhance product performance and sustainability.

The company's integrated operations encompass the manufacture of olefins and polyolefins, advanced polymer products, chemical intermediates and refining activities.

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