NL Industries (NYSE:NL) Share Price Passes Below 200 Day Moving Average - Here's Why

Key Points

• Technical weakness: NL Industries' shares crossed below their 200‑day moving average of $5.94, trading as low as $5.79 and last at $5.8050 (down about 2.4%), indicating recent downside momentum.
• Earnings miss and sell consensus: The company reported a large quarterly EPS miss (‑$0.63 vs. $0.18 expected) with a negative net margin (‑23.88%) and ROE, and analysts currently hold a consensus Sell rating after recent downgrades.
• Dividend increase but risk remains: NL raised its quarterly dividend to $0.10 (annualized $0.40, ~6.9% yield), yet its dividend payout ratio is negative (‑51.95%) and the company has a small market cap (~$284M), implying yield sustainability concerns.

NL Industries, Inc. (NYSE:NL - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $5.94 and traded as low as $5.79. NL Industries shares last traded at $5.8050, with a volume of 35,786 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on NL shares. Wall Street Zen upgraded shares of NL Industries to a "sell" rating in a research note on Saturday, February 7th. Weiss Ratings downgraded NL Industries from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, March 10th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Sell".

NL Industries Stock Down 2.4%

The stock has a market capitalization of $283.65 million, a P/E ratio of -7.54 and a beta of 0.24. The firm's 50-day simple moving average is $6.13 and its 200 day simple moving average is $5.94.

NL Industries (NYSE:NL - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The basic materials company reported ($0.63) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.81). The business had revenue of $37.70 million for the quarter. NL Industries had a negative net margin of 23.88% and a negative return on equity of 9.43%.

NL Industries Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 10th will be paid a dividend of $0.10 per share. This is a boost from NL Industries's previous quarterly dividend of $0.09. This represents a $0.40 annualized dividend and a yield of 6.9%. The ex-dividend date of this dividend is Tuesday, March 10th. NL Industries's dividend payout ratio (DPR) is currently -51.95%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NL. Aristides Capital LLC increased its holdings in shares of NL Industries by 0.5% in the fourth quarter. Aristides Capital LLC now owns 417,014 shares of the basic materials company's stock valued at $2,281,000 after buying an additional 2,075 shares in the last quarter. Bridgeway Capital Management LLC boosted its stake in shares of NL Industries by 8.3% during the 4th quarter. Bridgeway Capital Management LLC now owns 299,093 shares of the basic materials company's stock worth $1,636,000 after acquiring an additional 23,029 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of NL Industries by 11.0% in the 4th quarter. Empowered Funds LLC now owns 232,131 shares of the basic materials company's stock worth $1,270,000 after acquiring an additional 23,029 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of NL Industries by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 209,872 shares of the basic materials company's stock worth $1,148,000 after acquiring an additional 7,222 shares during the last quarter. Finally, Segall Bryant & Hamill LLC raised its position in shares of NL Industries by 70.0% during the third quarter. Segall Bryant & Hamill LLC now owns 93,864 shares of the basic materials company's stock worth $577,000 after purchasing an additional 38,640 shares during the period. Institutional investors and hedge funds own 10.67% of the company's stock.

About NL Industries

NL Industries, Inc is a U.S.-based industrial minerals company whose primary focus is the mining, upgrading and marketing of titanium feedstocks. The company's products include synthetic rutile and chloride slag, which serve as key raw materials for producers of titanium dioxide pigment. These pigments are widely used as whitening and opacifying agents in coatings, plastics, paper and specialty applications.

NL Industries serves a global customer base, supplying feedstocks under long-term agreements and through spot transactions.

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