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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Massimo CovezziSVPApr 30-May 149,248Yes81,426 shares37.7%
Kevin BrownSVPMay 179,365Yes193,964 shares29.0%
Michael VanDerSnickSVPMay 14,651No17,712 shares20.8%

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.

MonthInsider selling / sharesInsider buying / shares
May 201485,2730
April 2014131,3240
March 201400
February 2014570
January 201422,0290
December 201300
November 201300
October 2013177,42037
September 201320,0000
August 201325,098,6340
July 201308,500,000
June 201317,083,3350
May 2013125,5190
April 2013132,5810
March 201383,3330
February 201325,083,3330
January 201383,3330

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

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.

CompanyLYBDOWPSX
Market Cap:50.50B57.97B49.08B
Employees:13,30052,74313,500
Qtrly Rev Growth [yoy]:0.040.010.08
Revenue:44.53B57.16B156.62B
Gross Margin:0.140.170.12
EBITDA:6.12B7.29B2.78B
Operating Margin:0.120.080.01
Net Income:3.89B4.82B3.13B
EPS:6.923.986.39
P/E:13.3512.2313.07
PEG (5 yr expected):1.251.341.25
P/S:1.151.010.31

LyondellBasell has the highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
DOW0823,323
PSX13,600135,302

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.