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.
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%|
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|
There have been 68,126,171 shares sold, and there have been 8,500,037 shares purchased by insiders since January 2013.
LyondellBasell reported the first-quarter financial results on April 29 with the following highlights:
|Net income||$944 million|
The three insiders sold their shares after these results.
LyondellBasell's revenues peaked in 2012.
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.
(Source: Earnings presentation)
LyondellBasell's competitors include Dow Chemical (DOW) and Phillips 66 (NYSE:PSX). Here is a table comparing these companies.
|Qtrly Rev Growth [yoy]:||0.04||0.01||0.08|
|PEG (5 yr expected):||1.25||1.34||1.25|
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|
Only LyondellBasell has seen intensive insider selling during the last 30 days.
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.