Some LSB Industries, Inc. (NYSE:LXU) shareholders may be a little concerned to see that the Independent Director, Barry Golsen, recently sold a substantial US$516k worth of stock at a price of US$9.10 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

LSB Industries Insider Transactions Over The Last Year

In fact, the recent sale by Barry Golsen was the biggest sale of LSB Industries shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$9.64, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. We note that the biggest single sale was only 17% of Barry Golsen's holding.

Barry Golsen sold a total of 112.23k shares over the year at an average price of US$9.10. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of LSB Industries

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that LSB Industries insiders own 25% of the company, worth about US$172m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About LSB Industries Insiders?

An insider hasn't bought LSB Industries stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LSB Industries.

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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 of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.