Shares of LyondellBasell Industries N.V. (NYSE:LYB) rose by 8.3% during mid-day trading on Tuesday, following an upgrade from the Royal Bank of Canada (RBC), which increased its price target for the stock from $49.00 to $51.00. RBC currently holds a “sector perform” rating on the company. In the trading session, LyondellBasell reached a high of $54.53 before closing at $54.41.
Despite the surge, trading volume was lower than average, with 4,297,187 shares exchanged—down 34% from the average volume of 6,559,671 shares. The stock had closed the previous day at $50.25.
Multiple research firms have weighed in on LyondellBasell recently. BMO Capital Markets reiterated an “underperform” rating, slashing its price target from $48.00 to $36.00 in a report dated December 15, 2023. Similarly, Fermium Research downgraded the stock from a “strong-buy” to a “hold” on December 3, 2023. KeyCorp maintained a “sector weight” rating, while UBS Group reduced its target from $41.00 to $38.00, assigning a “sell” rating. JPMorgan Chase & Co. also adjusted its target price from $52.00 to $50.00, maintaining a “neutral” rating in a report released on November 3, 2023.
Analysts have varied opinions on the stock, with two rating it as a buy, seventeen issuing hold ratings, and five categorizing it as a sell. According to data from MarketBeat, the stock holds a consensus rating of “reduce” and an average target price of $53.05.
Institutional Investments and Market Metrics
Recent shifts in ownership among institutional investors and hedge funds have also been notable. MTM Investment Management LLC and Parvin Asset Management LLC each acquired new stakes in LyondellBasell during the second quarter, investing approximately $26,000. Meanwhile, Capital A Wealth Management LLC significantly increased its holdings by 6,314.3% during the same period, now owning 449 shares worth around $26,000. Other notable investors include Stance Capital LLC and Hilltop National Bank, which made new investments valued at $27,000 and $29,000, respectively.
Currently, institutional investors and hedge funds own approximately 71.20% of LyondellBasell’s stock. The company has a market capitalization of $17.57 billion, with a current ratio of 1.77, a quick ratio of 1.20, and a debt-to-equity ratio of 1.20. Its price-to-earnings (P/E) ratio stands at -23.36, while the stock has a beta of 0.70.
LyondellBasell’s 50-day and 200-day simple moving averages are $46.59 and $49.48, respectively.
Recent Financial Performance and Dividends
On January 30, 2023, LyondellBasell announced its latest earnings results, reporting earnings per share (EPS) of ($0.26), falling short of analysts’ expectations of $0.18 by ($0.44). The company experienced a negative net margin of 2.46% but achieved a positive return on equity of 4.94%. Revenue for the quarter was reported at $7.09 billion, exceeding the consensus estimate of $6.82 billion. This figure represents a 9.2% decline compared to the same quarter last year, which posted an EPS of $0.75.
Looking ahead, analysts forecast that LyondellBasell Industries N.V. will post an EPS of $6.31 for the current fiscal year.
In addition to its stock performance, LyondellBasell recently declared a quarterly dividend of $1.37 per share, which was paid on December 8, 2023. Shareholders on record as of December 1, 2023 received this dividend, marking an annualized dividend of $5.48 and a yield of 10.0%. The ex-dividend date was also set for December 1, 2023. Notably, LyondellBasell’s dividend payout ratio currently stands at -235.19%.
LyondellBasell Industries N.V. is a global chemical company based in Houston, Texas, specializing in the production of polyolefins and advanced polymers. Its extensive portfolio serves a variety of markets, including packaging, automotive, construction, electronics, and consumer goods. Through proprietary process technologies and expertise in catalysts, the company aims to deliver sustainable solutions that enhance product performance across its integrated operations.
