LyondellBasell Industries (NYSE:LYB) Trading Down 3.4% Following Weak Earnings

Key Points

• LyondellBasell Industries' stock dropped 3.4% to $51.59 following disappointing earnings, with earnings per share of $0.62 falling short of estimates by $0.25.
• The company announced a quarterly dividend of $1.37, resulting in an annualized dividend yield of 10.7%, despite a high payout ratio of 711.69%.
• Recent analyst ratings show a mix of attitudes towards the stock: three sell ratings, ten holds, two buys, and one strong buy, with an average target price of $65.23.

LyondellBasell Industries N.V. (NYSE:LYB - Get Free Report)'s stock price dropped 3.4% on Monday following a dissappointing earnings announcement. The company traded as low as $51.52 and last traded at $51.59. Approximately 3,404,375 shares were traded during trading, a decline of 10% from the average daily volume of 3,782,819 shares. The stock had previously closed at $53.42.

The specialty chemicals company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.87 by ($0.25). LyondellBasell Industries had a return on equity of 9.35% and a net margin of 0.74%. The company had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.58 billion. During the same period in the prior year, the company posted $2.24 EPS. The firm's revenue was down 11.8% compared to the same quarter last year.

LyondellBasell Industries Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Monday, August 25th will be issued a $1.37 dividend. This represents a $5.48 annualized dividend and a yield of 10.7%. LyondellBasell Industries's dividend payout ratio (DPR) is presently 711.69%.

Analyst Upgrades and Downgrades

Several research firms recently commented on LYB. Argus lowered LyondellBasell Industries from a "buy" rating to a "hold" rating in a report on Friday, May 30th. UBS Group dropped their target price on LyondellBasell Industries from $50.00 to $49.00 and set a "sell" rating on the stock in a report on Wednesday, July 9th. Mizuho increased their target price on LyondellBasell Industries from $65.00 to $67.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Barclays dropped their target price on LyondellBasell Industries from $72.00 to $62.00 and set an "equal weight" rating on the stock in a report on Thursday, May 1st. Finally, Wells Fargo & Company decreased their price objective on shares of LyondellBasell Industries from $75.00 to $65.00 and set an "overweight" rating for the company in a research note on Monday. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, LyondellBasell Industries currently has an average rating of "Hold" and an average target price of $65.23.

Institutional Investors Weigh In On LyondellBasell Industries

A number of hedge funds have recently added to or reduced their stakes in the company. Hantz Financial Services Inc. lifted its position in LyondellBasell Industries by 3,167.2% in the second quarter. Hantz Financial Services Inc. now owns 3,790 shares of the specialty chemicals company's stock valued at $219,000 after purchasing an additional 3,674 shares during the period. Arkadios Wealth Advisors lifted its position in LyondellBasell Industries by 62.2% in the second quarter. Arkadios Wealth Advisors now owns 6,879 shares of the specialty chemicals company's stock valued at $398,000 after purchasing an additional 2,637 shares during the period. Flagship Harbor Advisors LLC increased its holdings in LyondellBasell Industries by 74.1% in the second quarter. Flagship Harbor Advisors LLC now owns 11,683 shares of the specialty chemicals company's stock valued at $676,000 after buying an additional 4,971 shares in the last quarter. New York Life Investment Management LLC increased its holdings in LyondellBasell Industries by 0.5% in the second quarter. New York Life Investment Management LLC now owns 38,521 shares of the specialty chemicals company's stock valued at $2,229,000 after buying an additional 193 shares in the last quarter. Finally, Howard Capital Management Inc. increased its holdings in LyondellBasell Industries by 31.4% in the second quarter. Howard Capital Management Inc. now owns 5,862 shares of the specialty chemicals company's stock valued at $339,000 after buying an additional 1,402 shares in the last quarter. Institutional investors and hedge funds own 71.20% of the company's stock.

LyondellBasell Industries Stock Performance

The company has a quick ratio of 1.04, a current ratio of 1.77 and a debt-to-equity ratio of 0.94. The company has a market capitalization of $16.42 billion, a PE ratio of 66.31, a PEG ratio of 3.13 and a beta of 0.85. The stock's fifty day simple moving average is $60.13 and its 200-day simple moving average is $65.20.

About LyondellBasell Industries

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. The company operates in six segments: Olefins and PolyolefinsAmericas; Olefins and PolyolefinsEurope, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.

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