Should LSB Industries, Inc. (NYSE:LXU) investors track the following data?
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Just as necessary, optimistic insider trading sentiment is another way to look at the stock market universe. There are lots of stimuli for an insider to sell shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the impressive potential of this method if piggybackers know where to look (learn more here).
What’s more, it’s important to study the recent info for LSB Industries, Inc. (NYSE:LXU).
How are hedge funds trading LSB Industries, Inc. (NYSE:LXU)?
At Q2’s end, a total of 13 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, Martin Whitman’s Third Avenue Management had the biggest position in LSB Industries, Inc. (NYSE:LXU), worth close to $34.1 million, accounting for 0.7% of its total 13F portfolio. On Third Avenue Management’s heels is Royce & Associates, managed by Chuck Royce, which held a $16.7 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Jeffrey Gendell’s Tontine Asset Management, Peter S. Park’s Park West Asset Management and Jim Simons’s Renaissance Technologies.
Because LSB Industries, Inc. (NYSE:LXU) has experienced dropping sentiment from the smart money’s best and brightest, we can see that there is a sect of funds that decided to sell off their entire stakes in Q1. Interestingly, Joel Greenblatt’s Gotham Asset Management said goodbye to the biggest investment of all the hedgies we monitor, worth about $0.6 million in stock. Mike Vranos’s fund, Ellington, also dropped its stock, about $0.4 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about LSB Industries, Inc. (NYSE:LXU)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, LSB Industries, Inc. (NYSE:LXU) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators 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 are the members of the chemicals – major diversified industry and their market caps are closest to LXU’s market cap.