Taking the lead: LyondellBasell Industries N.V. (LYB)

LyondellBasell Industries N.V. (NYSE: LYB) stock fell -2.15% on Friday to $75.70 against a previous-day closing price of $77.36. With 2.85 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.25 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $78.21 whereas the lowest price it dropped to was $75.67. The 52-week range on LYB shows that it touched its highest point at $112.53 and its lowest point at $75.65 during that stretch. It currently has a 1-year price target of $95.52. With its current market cap of 25.19 billion, LYB has annualized dividend of $4.76 while the current yield stands at 6.29%. Beta for the stock currently stands at 1.27.

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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 LYB was down-trending over the past week, with a drop of -4.18%, but this was down by -14.03% over a month. Three-month performance dropped to -13.52% while six-month performance fell -24.19%. The stock lost -11.82% in the past year, while it has lost -14.04% so far this year. A look at the trailing 12-month EPS for LYB yields 16.46 with Next year EPS estimates of 14.60. For the next quarter, that number is 3.84. This implies an EPS growth rate of 294.90% for this year and -9.72% for next year. EPS is expected to decline by -14.57% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.90%.

Float and Shares Shorts:

At present, 328.00 million LYB shares are outstanding with a float of 254.97 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.42 million, which was 1.66% higher than short shares on Jun 14, 2022. In addition to Mr. Michael C. McMurray as the firm’s Exec. VP & CFO, Mr. James D. Guilfoyle serves as its Exec. VP of Advanced Polymer Solutions & Global Supply Chain.

Institutional Ownership:

Through their ownership of 72.18% of LYB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.86% of LYB, in contrast to 42.49% held by mutual funds. Shares owned by individuals account for 24.69%. As the largest shareholder in LYB with 9.50% of the stake, The Vanguard Group, Inc. holds 30,988,011 shares worth 30,988,011. A second-largest stockholder of LYB, BlackRock Fund Advisors, holds 17,714,348 shares, controlling over 5.43% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in LYB, holding 14,274,389 shares or 4.38% stake. With a 2.38% stake in LYB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,753,376 shares are owned by the mutual fund manager. The American Balanced Fund, which owns about 1.94% of LYB stock, is the second-largest Mutual Fund holder. It holds 6,315,734 shares valued at 524.21 million. Washington Mutual Investors Fund holds 1.87% of the stake in LYB, owning 6,095,068 shares worth 505.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LYB since 26 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LYB analysts setting a high price target of $115.00 and a low target of $65.00, the average target price over the next 12 months is $93.70. Based on these targets, LYB could surge 51.92% to reach the target high and fall by -14.13% to reach the target low. Reaching the average price target will result in a growth of 23.78% 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. LYB will report FY 2022 earnings on 02/03/2023. Analysts have provided yearly estimates in a range of $17.85 being high and $13.37 being low. For LYB, this leads to a yearly average estimate of $15.94. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. LyondellBasell Industries N.V. surprised analysts by $0.49 when it reported $5.19 EPS against a consensus estimate of $4.70. The surprise factor in the prior quarter was $0.49. Based on analyst estimates, the high estimate for the next quarter is $4.43 and the low estimate is $2.51. The average estimate for the next quarter is thus $3.70.

Summary of Insider Activity:

Insiders traded LYB stock several times over the past three months with 4 Buys and 7 Sells. In these transactions, 928 shares were bought while 6,681 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 245,095 while 189,054 shares were sold.

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