Do Hedge Funds and Insiders Love LSB Industries, Inc. (NYSE:LXU)? – Solazyme Inc (NASDAQ:SZYM), FutureFuel Corp. (NYSE:FF)

LSB Industries, Inc. (NYSE:LXU) has seen a decrease in hedge fund sentiment lately.

LSB Industries, Inc. (NYSE:LXU)

In the financial world, there are a multitude of metrics market participants can use to watch their holdings. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a very impressive margin (see just how much).

Just as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are plenty of reasons for an executive to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this method if investors know where to look (learn more here).

Now, we’re going to take a peek at the latest action surrounding LSB Industries, Inc. (NYSE:LXU).

How are hedge funds trading LSB Industries, Inc. (NYSE:LXU)?

In preparation for this year, a total of 13 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes significantly.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in LSB Industries, Inc. (NYSE:LXU). Royce & Associates has a $51 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Martin Whitman of Third Avenue Management, with a $31 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Joel Greenblatt’s Gotham Asset Management.

Due to the fact that LSB Industries, Inc. (NYSE:LXU) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of hedgies that slashed their entire stakes in Q4. At the top of the heap, Mike Vranos’s Ellington dumped the largest position of the 450+ funds we key on, valued at an estimated $1 million in stock.. Steven Cohen’s fund, SAC Capital Advisors, also dumped its stock, about $0 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in LSB Industries, Inc. (NYSE:LXU)

Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the last half-year time period, LSB Industries, Inc. (NYSE:LXU) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to LSB Industries, Inc. (NYSE:LXU). These stocks are Balchem Corporation (NASDAQ:BCPC), Solazyme Inc (NASDAQ:SZYM), FutureFuel Corp. (NYSE:FF), Rentech, Inc. (NYSEAMEX:RTK), and A. Schulman Inc (NASDAQ:SHLM). This group of stocks belong to the chemicals – major diversified industry and their market caps are similar to LXU’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Balchem Corporation (NASDAQ:BCPC) 7 1 2
Solazyme Inc (NASDAQ:SZYM) 10 2 6
FutureFuel Corp. (NYSE:FF) 11 2 0
Rentech, Inc. (NYSEAMEX:RTK) 17 0 4
A. Schulman Inc (NASDAQ:SHLM) 11 1 3

With the returns exhibited by the aforementioned research, everyday investors should always watch hedge fund and insider trading activity, and LSB Industries, Inc. (NYSE:LXU) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!