NL Industries (NYSE:NL) Stock Price Crosses Below Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• NL Industries' share price fell below its 200-day moving average of $7.29, trading as low as $5.70 after reporting weaker than expected earnings with an EPS of $0.01.
• The company announced a special dividend of $0.21, payable on August 28th, with a dividend payout ratio of 28.80%.
• Wall Street analysts upgraded NL Industries from a "hold" to a "buy" rating, indicating a more favorable outlook despite recent performance challenges.

Shares of NL Industries, Inc. (NYSE:NL - Get Free Report) crossed below its 200-day moving average during trading on Wednesday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $7.29 and traded as low as $5.70. NL Industries shares last traded at $5.86, with a volume of 37,623 shares.

The basic materials company reported $0.01 EPS 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 for 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. This represents a $0.36 annualized dividend and a yield of 5.9%. The ex-dividend date of this dividend is Friday, September 5th. NL Industries's dividend payout ratio is currently 32.73%.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen downgraded NL Industries from a "hold" rating to a "sell" rating in a research note on Saturday.

Institutional Investors Weigh In On NL Industries

Hedge funds and other institutional investors have recently made changes to their positions in the company. Strs Ohio purchased a new stake in shares of NL Industries during the 1st quarter worth about $35,000. Lazard Asset Management LLC raised its stake 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 worth $74,000 after purchasing an additional 2,871 shares in the last quarter. Barclays PLC raised its stake in shares of NL Industries by 13.4% during the 4th quarter. Barclays PLC now owns 13,538 shares of the basic materials company's stock worth $106,000 after purchasing an additional 1,604 shares in the last quarter. Bailard Inc. purchased a new stake in shares of NL Industries during the 1st quarter worth about $141,000. Finally, Nuveen LLC purchased a new stake in shares of NL Industries during the 1st quarter worth about $183,000. 10.67% of the stock is owned by hedge funds and other institutional investors.

NL Industries Trading Down 0.4%

The firm has a market cap of $296.76 million, a price-to-earnings ratio of 5.52 and a beta of 0.25. The stock has a fifty day moving average price of $6.54 and a 200 day moving average price of $7.26.

NL Industries Company Profile

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.