Taking the lead: LSB Industries Inc. (LXU)

LSB Industries Inc. (NYSE: LXU) stock fell -4.07% on Friday to $13.19 against a previous-day closing price of $13.75. With 4.69 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.67 million shares. During the session, the Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $13.70 whereas the lowest price it dropped to was $12.93. The 52-week range on LXU shows that it touched its highest point at $27.45 and its lowest point at $6.07 during that stretch. It currently has a 1-year price target of $25.48. Beta for the stock currently stands at 1.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LXU was down-trending over the past week, with a drop of -4.90%, but this was up by 4.93% over a month. Three-month performance dropped to -26.35% while six-month performance rose 20.57%. The stock gained 88.02% in the past year, while it has gained 19.37% so far this year. A look at the trailing 12-month EPS for LXU yields -4.07 with Next year EPS estimates of 1.87. For the next quarter, that number is -0.08. This implies an EPS growth rate of -62.40% for this year and -20.09% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.50%.

Float and Shares Shorts:

At present, 88.18 million LXU shares are outstanding with a float of 81.58 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.45 million, which was 1.62% higher than short shares on Jun 14, 2022. In addition to Mr. Mark T. Behrman as the firm’s Pres, CEO & Director, Mr. Jack E. Golsen serves as its Founder & Chairman Emeritus.


Institutional Ownership:

Through their ownership of 83.39% of LXU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 74.88% of LXU, in contrast to 6.51% held by mutual funds. Shares owned by individuals account for 11.61%. As the largest shareholder in LXU with 60.69% of the stake, Security Benefit Life Insurance C holds 54,356,127 shares worth 54,356,127. A second-largest stockholder of LXU, Tontine Associates LLC, holds 2,217,332 shares, controlling over 2.48% of the firm’s shares. Robotti & Co. Advisors LLC is the third largest shareholder in LXU, holding 1,641,188 shares or 1.83% stake. With a 1.02% stake in LXU, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 914,871 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 0.80% of LXU stock, is the second-largest Mutual Fund holder. It holds 711,677 shares valued at 9.86 million. Vanguard Extended Market Index Fu holds 0.46% of the stake in LXU, owning 411,095 shares worth 5.7 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LXU since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LXU analysts setting a high price target of $27.00 and a low target of $23.95, the average target price over the next 12 months is $25.48. Based on these targets, LXU could surge 104.7% to reach the target high and rise by 81.58% to reach the target low. Reaching the average price target will result in a growth of 93.18% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LXU will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $2.37 being high and $2.31 being low. For LXU, this leads to a yearly average estimate of $2.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. LSB Industries Inc. surprised analysts by $0.09 when it reported $1.15 EPS against a consensus estimate of $1.06. The surprise factor in the prior quarter was -$0.17. Based on analyst estimates, the high estimate for the next quarter is -$0.07 and the low estimate is -$0.09. The average estimate for the next quarter is thus -$0.08.

Summary of Insider Activity:

Insiders traded LXU stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 50,155,371 while 559,504 shares were sold.

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