Anyone interested in LSB Industries, Inc. (NYSE:LXU) should probably be aware that the Executive Vice President of Manufacturing, John Burns, recently divested US$307k worth of shares in the company, at an average price of US$9.25 each. That sale was 26% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At LSB Industries

In fact, the recent sale by John Burns was the biggest sale of LSB Industries shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$8.52. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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!

I will like LSB Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does LSB Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. LSB Industries insiders own 27% of the company, currently worth about US$161m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LSB Industries. Be aware that LSB Industries is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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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.