Should You Avoid LSB Industries, Inc. (LXU)?

Because LSB Industries, Inc. (NYSE:LXU) has weathered a decline in interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their positions entirely last quarter. Intriguingly, William Charters and Mario Marcon’s Sabal Capital Management cashed in the biggest stake of the 700 funds followed by Insider Monkey, comprising close to $1.2 million in stock, and Dan Sobol and Lisa Hess’s SkyTop Capital Management was right behind this move, as the fund dropped about $0.8 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as LSB Industries, Inc. (NYSE:LXU) but similarly valued. We will take a look at Star Bulk Carriers Corp. (NASDAQ:SBLK), Tabula Rasa HealthCare Inc (NASDAQ:TRHC), Hill International Inc (NYSE:HIL), and Exa Corp (NASDAQ:EXA). This group of stocks’ market valuations match LXU’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $57 million. That figure was $31 million in LXU’s case. Hill International Inc (NYSE:HIL) is the most popular stock in this table. On the other hand Star Bulk Carriers Corp. (NASDAQ:SBLK) is the least popular one with only 6 bullish hedge fund positions. LSB Industries, Inc. (NYSE:LXU) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HIL might be a better candidate to consider taking a long position in.

Disclosure: None