Investors Buy Large Volume of Call Options on Lsb Industries (NYSE:LXU)

Key Points

• Unusually heavy call-option activity targeted LSB Industries, with 2,888 call options purchased—321% above the typical daily volume.
• Analysts remain cautious: the stock carries a consensus “Hold” rating and an average price target of $14.67, despite one recent upgrade to “Outperform.”
• Shares rose 2.4% to $11.45, while the company’s latest quarterly results missed earnings expectations, reporting a $0.09 loss per share versus the estimated $0.33 profit.

Lsb Industries Inc. (NYSE:LXU - Get Free Report) was the target of unusually large options trading on Wednesday. Investors acquired 2,888 call options on the company. This represents an increase of 321% compared to the typical daily volume of 686 call options.

Analyst Upgrades and Downgrades

LXU has been the topic of a number of recent analyst reports. Wall Street Zen downgraded shares of Lsb Industries from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. UBS Group set a $16.00 price target on Lsb Industries and gave the company a "neutral" rating in a research report on Wednesday, May 13th. Royal Bank Of Canada upgraded shares of Lsb Industries from a "sector perform" rating to an "outperform" rating and set a $13.00 price objective on the stock in a research report on Monday, August 10th. Finally, Weiss Ratings downgraded Lsb Industries from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 4th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $14.67.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Lsb Industries

A number of hedge funds have recently bought and sold shares of LXU. Royal Bank of Canada increased its stake in shares of Lsb Industries by 7.4% in the first quarter. Royal Bank of Canada now owns 38,916 shares of the conglomerate's stock worth $257,000 after purchasing an additional 2,692 shares during the period. Empowered Funds LLC bought a new stake in Lsb Industries during the 1st quarter valued at approximately $697,000. JPMorgan Chase & Co. grew its holdings in Lsb Industries by 22.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 178,493 shares of the conglomerate's stock valued at $1,392,000 after buying an additional 32,516 shares during the last quarter. Rhumbline Advisers grew its holdings in Lsb Industries by 1.8% in the 2nd quarter. Rhumbline Advisers now owns 89,804 shares of the conglomerate's stock valued at $700,000 after buying an additional 1,616 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in Lsb Industries in the 2nd quarter worth approximately $1,694,000. 73.67% of the stock is currently owned by institutional investors.

Lsb Industries Stock Up 2.4%

Shares of NYSE:LXU traded up $0.27 on Wednesday, reaching $11.45. The company had a trading volume of 152,019 shares, compared to its average volume of 1,071,529. Lsb Industries has a twelve month low of $7.71 and a twelve month high of $17.22. The stock has a 50-day moving average price of $10.75 and a 200 day moving average price of $12.41. The stock has a market capitalization of $824.40 million, a P/E ratio of 22.73 and a beta of 0.31. The company has a quick ratio of 2.31, a current ratio of 2.43 and a debt-to-equity ratio of 0.82.

Lsb Industries (NYSE:LXU - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The conglomerate reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of $0.33 by ($0.42). Lsb Industries had a net margin of 5.58% and a return on equity of 6.98%. The company had revenue of $168.09 million during the quarter, compared to the consensus estimate of $155.45 million. On average, equities analysts expect that Lsb Industries will post 0.53 EPS for the current year.

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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