LyondellBasell: 3 Different Insiders Have Sold Shares During The Last 30 Days

Summary

3 insiders sold LyondellBasell's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

LyondellBasell Industries N.V. (NYSE:LYB) manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for production of polymers.

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Insider selling during the last 30 days

Here is a table of LyondellBasell's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Massimo Covezzi SVP Apr 30-May 1 49,248 Yes 81,426 shares 37.7%
Kevin Brown SVP May 1 79,365 Yes 193,964 shares 29.0%
Michael VanDerSnick SVP May 1 4,651 No 17,712 shares 20.8%
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There have been 133,264 shares sold by insiders during the last 30 days. Massimo Covezzi and Kevin Brown sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of LyondellBasell's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 85,273 0
April 2014 131,324 0
March 2014 0 0
February 2014 57 0
January 2014 22,029 0
December 2013 0 0
November 2013 0 0
October 2013 177,420 37
September 2013 20,000 0
August 2013 25,098,634 0
July 2013 0 8,500,000
June 2013 17,083,335 0
May 2013 125,519 0
April 2013 132,581 0
March 2013 83,333 0
February 2013 25,083,333 0
January 2013 83,333 0
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There have been 68,126,171 shares sold, and there have been 8,500,037 shares purchased by insiders since January 2013.

Financials

LyondellBasell reported the first-quarter financial results on April 29 with the following highlights:

Revenue $11.1 billion
Net income $944 million
Cash $4.1 billion
Debt $6.8 billion
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The three insiders sold their shares after these results.

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LyondellBasell's revenues peaked in 2012.

Outlook

During the second quarter, LyondellBasell expects significant planned downtime at its La Porte facility, while the company performs normal turnaround maintenance and additional steps to complete an 800 million pounds per year ethylene expansion.

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(Source: Earnings presentation)

Competition

LyondellBasell's competitors include Dow Chemical (NYSE:DOW) and Phillips 66 (NYSE:PSX). Here is a table comparing these companies.

Company LYB DOW PSX
Market Cap: 50.50B 57.97B 49.08B
Employees: 13,300 52,743 13,500
Qtrly Rev Growth [yoy]: 0.04 0.01 0.08
Revenue: 44.53B 57.16B 156.62B
Gross Margin: 0.14 0.17 0.12
EBITDA: 6.12B 7.29B 2.78B
Operating Margin: 0.12 0.08 0.01
Net Income: 3.89B 4.82B 3.13B
EPS: 6.92 3.98 6.39
P/E: 13.35 12.23 13.07
PEG (5 yr expected): 1.25 1.34 1.25
P/S: 1.15 1.01 0.31
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LyondellBasell has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
DOW 0 823,323
PSX 13,600 135,302
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Only LyondellBasell has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling LyondellBasell, and there have not been any insiders buying LyondellBasell during the last 30 days. All three of these insiders decreased their holdings by more than 10%. LyondellBasell has an insider ownership of 14.15%.

Before going short LyondellBasell, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.