NL Industries (NYSE:NL) Share Price Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• NL Industries' share price has fallen below its 200-day moving average, trading at $6.41 compared to the average of $7.17, indicating a potential shift in market sentiment.
• Wall Street Zen downgraded NL Industries from a "hold" to a "sell" rating, with a consensus price target of $6.00 following disappointing earnings results.
• The company recently announced a quarterly dividend of $0.09 per share, providing a 5.6% yield for investors, despite a lower-than-expected earnings report.

Shares of NL Industries, Inc. (NYSE:NL - Get Free Report) passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $7.17 and traded as low as $6.29. NL Industries shares last traded at $6.41, with a volume of 14,794 shares changing hands.

Analysts Set New Price Targets

Separately, Wall Street Zen downgraded NL Industries from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, NL Industries has a consensus rating of "Sell" and a consensus price target of $6.00.

NL Industries Trading Up 2.4%

The firm has a market capitalization of $327.61 million, a price-to-earnings ratio of 6.10 and a beta of 0.25. The company's 50 day moving average is $6.41 and its 200-day moving average is $7.16.

NL Industries (NYSE:NL - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.18). NL Industries had a net margin of 35.06% and a return on equity of 12.93%. The company had revenue of $40.30 million during the quarter.

NL Industries Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 23rd. Investors of record on Friday, September 5th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $0.36 annualized dividend and a dividend yield of 5.4%. NL Industries's payout ratio is currently 32.73%.

Hedge Funds Weigh In On NL Industries

A number of institutional investors and hedge funds have recently made changes to their positions in NL. Strs Ohio acquired a new stake in shares of NL Industries in the 1st quarter worth about $35,000. Lazard Asset Management LLC grew its position in shares of NL Industries by 42.9% during the 4th quarter. Lazard Asset Management LLC now owns 9,556 shares of the basic materials company's stock valued at $74,000 after acquiring an additional 2,871 shares during the period. Barclays PLC boosted its holdings in NL Industries by 13.4% in the 4th quarter. Barclays PLC now owns 13,538 shares of the basic materials company's stock worth $106,000 after buying an additional 1,604 shares during the period. Bailard Inc. bought a new position in NL Industries in the 1st quarter worth approximately $141,000. Finally, Nuveen LLC bought a new position in NL Industries in the 1st quarter valued at $183,000. Institutional investors own 10.67% of the company's stock.

About NL Industries

NL Industries, Inc, through its subsidiary, CompX International Inc, operates in the component products industry in Europe, North America, the Asia Pacific, and internationally. The company manufactures and sells mechanical and electronic cabinet locks and other locking mechanisms, including disc tumbler locks; pin tumbler locking mechanisms under KeSet, System 64, TuBar, and Turbine brands; and electronic locks under CompX eLock and StealthLock brands for use in various applications, such as mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, vending and cash containment machines.