We wouldn't blame LyondellBasell Industries N.V. (NYSE:LYB) shareholders if they were a little worried about the fact that Massimo Covezzi, the Senior Vice President of Research & Development recently netted about US$600k selling shares at an average price of US$96.79. That diminished their holding by a very significant 52%, which arguably implies a strong desire to reallocate capital.
LyondellBasell Industries Insider Transactions Over The Last Year
In fact, the recent sale by Massimo Covezzi was the biggest sale of LyondellBasell Industries shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$97.39). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 52% of Massimo Covezzi's stake.
Happily, we note that in the last year insiders paid US$1.0m for 13606 shares. On the other hand they divested 6194 shares, for US$600k. In total, LyondellBasell Industries insiders bought more than they sold over the last year. Their average price was about US$76.58. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
LyondellBasell Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of LyondellBasell Industries
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of LyondellBasell Industries shares, worth about US$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About LyondellBasell Industries Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think LyondellBasell Industries insiders are doubting the company, and they do own shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: LyondellBasell Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.