On July 28, 2023, ROBOTTI ROBERT (Trades, Portfolio), a renowned investment firm, significantly increased its stake in LSB Industries Inc (LXU, Financial). This article will delve into the details of the transaction, provide an overview of the guru and the company, and analyze the potential implications of this investment move.
Details of the Transaction
ROBOTTI ROBERT (Trades, Portfolio) added 1,923,939 shares of LSB Industries Inc to its portfolio, representing a 79.52% increase in its holdings. The shares were acquired at a price of $10.89 each, bringing the firm's total holdings in the company to 4,343,307 shares. This transaction had a 3.56% impact on the firm's portfolio and increased its position in the company to 8.03%. As a result, ROBOTTI ROBERT (Trades, Portfolio) now holds a 5.80% stake in LSB Industries Inc.
Profile of ROBOTTI ROBERT (Trades, Portfolio)
ROBOTTI ROBERT (Trades, Portfolio) is a New York-based investment firm with a portfolio of 60 stocks, primarily in the Energy and Industrials sectors. The firm's top holdings include Builders FirstSource Inc (BLDR, Financial), LSB Industries Inc (LXU, Financial), Westlake Corp (WLK, Financial), West Fraser Timber Co.Ltd (WFG, Financial), and Tidewater Inc (TDW, Financial). The firm manages an equity portfolio worth $568 million. The recent transaction aligns with the firm's investment philosophy and further diversifies its portfolio.
Overview of LSB Industries Inc
LSB Industries Inc, with a market cap of $813.325 million, is a US-based company engaged in the manufacturing and sale of chemical products. The company's products are sold through distributors and directly to end customers throughout the United States. The company's stock, symbol LXU, was first listed on the stock exchange on August 18, 1995. As of the date of this article, the stock is trading at $10.94, representing a 0.46% gain since the transaction and a 616.62% increase since its IPO. However, the stock is currently significantly overvalued according to the GF Value Rank, with a GF Value of 8.10 and a Price to GF Value ratio of 1.35. The company's GF Score is 63/100, indicating a moderate future performance potential.
Financial Health of LSB Industries Inc
LSB Industries Inc has a Financial Strength Rank of 5/10, a Profitability Rank of 4/10, and a Growth Rank of 6/10. The company's Piotroski F-Score is 5, and its Altman Z score is 2.25, indicating a moderate risk of financial distress. The company's cash to debt ratio is 0.52, and its interest coverage is 3.16. The company's ROE and ROA are 20.06% and 7.64% respectively.
Other Gurus' Involvement
Other notable gurus who hold shares in LSB Industries Inc include Joel Greenblatt (Trades, Portfolio). The involvement of these gurus further validates the potential of the company and may influence other investors to consider investing in the company.
Conclusion
In conclusion, ROBOTTI ROBERT (Trades, Portfolio)'s recent acquisition of additional shares in LSB Industries Inc is a significant move that aligns with the firm's investment strategy. Despite the company's current overvaluation, its moderate GF Score and the involvement of other gurus suggest potential for future performance. However, investors should also consider the company's financial health and market conditions before making investment decisions.
