LSB Industries Inc. [LXU] Revenue clocked in at $337.80 million, down -47.86% YTD: What’s Next?

LSB Industries Inc. [NYSE: LXU] gained 32.73% or 0.54 points to close at $2.19 with a heavy trading volume of 1341369 shares. The company report on October 8, 2020 that LSB Industries, Inc. Announces New 7 Year Nitric Acid Contract.

LSB Industries, Inc. (“LSB”), (NYSE: LXU), today announced that it has signed a new long term nitric acid supply contract with a customer. Under the agreement, LSB will supply between 70,000 to 100,000 tons of nitric acid per year. Sales are expected to begin in the first quarter of 2021.

“We are very pleased to have been chosen as key long-term supplier of nitric acid to an important customer,” stated Mark Behrman, LSB’s President and Chief Executive Officer. “Notably, his contract advances one of our key operating initiatives to leverage our underutilized nitric acid production capacity at our El Dorado facility. This contract, along with the previously released CO2 and LDAN agreements, is the result of our focused marketing efforts to sell our excess production capacity and change product mix in order to enhance our margins. We expect these agreements, when combined with the impact of a new fertilizer storage facility that we completed construction on in April, will provide a meaningful increase in incremental annual EBITDA when fully implemented.”.

It opened the trading session at $1.65, the shares rose to $2.30 and dropped to $1.65, the range by which the price of stock traded the whole day. The daily chart for LXU points out that the company has recorded 32.73% gains over the past six months. However, it is still -119.0% lower than its most recent low trading price.

If we look at the average trading volume of 492.01K shares, LXU reached to a volume of 1341369 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about LSB Industries Inc. [LXU]:

Singular Research have made an estimate for LSB Industries Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 13, 2014. While these analysts kept the previous recommendation, Singular Research dropped their target price from $55 to $50. The new note on the price target was released on November 12, 2013, representing the official price target for LSB Industries Inc. stock. Previously, the target price had yet another drop from $41 to $38, while Northland Securities kept a Outperform rating on LXU stock. On May 10, 2012, analysts increased their price target for LXU shares from 34 to 41.

The Average True Range (ATR) for LSB Industries Inc. is set at 0.17, with the Price to Sales ratio for LXU stock in the period of the last 12 months amounting to 0.19. The Price to Book ratio for the last quarter was 0.30, with the Price to Cash per share for the same quarter was set at 1.94.

Trading performance analysis for LXU stock

LSB Industries Inc. [LXU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 36.87. With this latest performance, LXU shares gained by 11.73% in over the last four-week period, additionally plugging by 32.73% over the last 6 months – not to mention a drop of -57.39% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LXU stock in for the last two-week period is set at 64.22, with the RSI for the last a single of trading hit 72.26, and the three-weeks RSI is set at 60.58 for LSB Industries Inc. [LXU]. The present Moving Average for the last 50 days of trading for this stock 1.85, while it was recorded at 1.72 for the last single week of trading, and 1.97 for the last 200 days.

LSB Industries Inc. [LXU]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and LSB Industries Inc. [LXU] shares currently have an operating margin of -7.99 and a Gross Margin at +1.37. LSB Industries Inc.’s Net Margin is presently recorded at -17.37.

Return on Total Capital for LXU is now -3.00, given the latest momentum, and Return on Invested Capital for the company is -6.67. Return on Equity for this stock declined to -12.35, with Return on Assets sitting at -5.02. When it comes to the capital structure of this company, LSB Industries Inc. [LXU] has a Total Debt to Total Equity ratio set at 100.46. Additionally, LXU Total Debt to Total Capital is recorded at 50.11, with Total Debt to Total Assets ending up at 39.01. Long-Term Debt to Equity for the company is recorded at 188.70, with the Long-Term Debt to Total Capital now at 47.69.

Reflecting on the efficiency of the workforce at the company, LSB Industries Inc. [LXU] managed to generate an average of -$106,943 per employee. Receivables Turnover for the company is 6.85 with a Total Asset Turnover recorded at a value of 0.29.LSB Industries Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.70.

LSB Industries Inc. [LXU]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, LSB Industries Inc. posted -1.39/share EPS, while the average EPS was predicted by analysts to be reported at -1/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -39.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LXU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for LSB Industries Inc. go to 12.00%.

An analysis of insider ownership at LSB Industries Inc. [LXU]

There are presently around $24 million, or 38.10% of LXU stock, in the hands of institutional investors. The top three institutional holders of LXU stocks are: ROBOTTI ROBERT with ownership of 1,581,217, which is approximately -1.839% of the company’s market cap and around 1.20% of the total institutional ownership; DIMENSIONAL FUND ADVISORS LP, holding 1,559,850 shares of the stock with an approximate value of $3.42 million in LXU stocks shares; and VANGUARD GROUP INC, currently with $2.26 million in LXU stock with ownership of nearly -12.867% of the company’s market capitalization.

Positions in LSB Industries Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 24 institutional holders increased their position in LSB Industries Inc. [NYSE:LXU] by around 2,209,497 shares. Additionally, 68 investors decreased positions by around 11,103,200 shares, while 10 investors held positions by with 2,389,991 shares. The mentioned changes placed institutional holdings at 10,922,706 shares, according to the latest SEC report filing. LXU stock had 15 new institutional investments in for a total of 1,556,575 shares, while 44 institutional investors sold positions of 5,954,052 shares during the same period.

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