LyondellBasell Industries (NYSE: LYB) has received an updated price target of $70.00 from analysts at Wells Fargo & Company, reflecting a significant increase from the previous target of $48.00. This adjustment, noted in a report issued to investors on Friday, suggests a potential downside of 4.69% based on the stock’s last closing price. Wells Fargo currently maintains an “equal weight” rating on the specialty chemicals company.
This new valuation comes as LyondellBasell faces mixed reviews from various financial analysts. On January 22, Weiss Ratings reiterated a “sell (d+)” rating for the company, while Vertical Research upgraded its stance from “hold” to “buy,” setting a target of $75.00. Similarly, Fermium Research classified the stock as a “strong buy” in its latest analysis.
On the other hand, The Goldman Sachs Group reaffirmed a “sell” rating on February 2, adding to the varied opinions surrounding LyondellBasell’s performance. Jefferies Financial Group also raised its price target from $51.00 to $70.00, aligning with Wells Fargo’s assessment. Presently, one analyst has assigned a “strong buy” rating, five rate it as “buy,” while thirteen analysts suggest holding the stock and four have issued “sell” ratings. According to MarketBeat.com, the consensus price target across analysts stands at $61.28.
Recent Earnings Report Highlights
LyondellBasell released its quarterly earnings results on January 30, 2024, reporting an earnings per share (EPS) of ($0.26). This figure fell short of analysts’ expectations, which had forecasted an EPS of $0.18. The company experienced a revenue of $7.09 billion for the quarter, surpassing the projected $6.82 billion. However, this revenue reflects a decline of 9.2% compared to the same quarter last year when LyondellBasell recorded an EPS of $0.75. The company’s net margin stood at (2.46%), while its return on equity was 4.93%. Analysts are forecasting that LyondellBasell will achieve an EPS of 6.31 for the current year.
Insider Activity and Institutional Investment
In related developments, major shareholder Ai Investments Holdings LLC sold 384,548 shares of LyondellBasell on March 9, 2024. The shares were sold at an average price of $68.13, totaling $26,199,255.24. Following this transaction, Ai Investments Holdings retains 5,270,918 shares, valued at approximately $359,107,643.34. This sale represents a 6.80% decrease in their ownership stake. Insider ownership accounts for 0.14% of the company’s stock.
Institutional investors have also been active in buying and selling shares of LyondellBasell. For instance, Vanguard Group Inc. increased its stake by 0.3% in the third quarter, now owning 30,965,458 shares worth about $1.52 billion. Dodge & Cox also raised its position by 0.4%, bringing its total shares to 16,969,997, valued at approximately $981.88 million. Other significant institutional investors include State Street Corp and Charles Schwab Investment Management Inc., who also expanded their holdings.
Overall, institutional investors and hedge funds collectively own 71.20% of LyondellBasell’s stock, indicating a strong interest in the company despite the recent fluctuations in its stock performance.
LyondellBasell Industries N.V., headquartered in Houston, Texas, specializes in producing polyolefins and advanced polymers. The company serves various end markets, including packaging, automotive, construction, electronics, and consumer goods. Through its proprietary process technologies and expertise, LyondellBasell aims to deliver innovative and sustainable solutions to enhance product performance across multiple sectors.
