NL Industries (NYSE:NL) Shares Cross Below 200-Day Moving Average Following Weak 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.

NL Industries, Inc. (NYSE:NL - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 return on equity of 14.97% and a net margin of 41.23%.

NL Industries Announces Dividend

The company also recently announced a special dividend, which will be paid on Thursday, August 28th. Investors of record on Monday, August 18th will be paid a $0.21 dividend. NL Industries's dividend payout ratio is currently 28.80%.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised shares of NL Industries from a "hold" rating to a "buy" rating in a research note on Saturday, May 17th.

Institutional Investors Weigh In On NL Industries

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strs Ohio acquired a new position in NL Industries in the 1st quarter valued at about $35,000. Lazard Asset Management LLC raised its stake in shares of NL Industries by 42.9% during the fourth 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 during the last quarter. Barclays PLC lifted its holdings in shares of NL Industries by 13.4% during the fourth 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 during the period. Bailard Inc. acquired a new stake in shares of NL Industries during the first quarter worth $141,000. Finally, Nuveen LLC purchased a new position in NL Industries in the 1st quarter valued at $183,000. Hedge funds and other institutional investors own 10.67% of the company's stock.

NL Industries Trading Down 1.8%

The company has a market capitalization of $286.02 million, a price-to-earnings ratio of 4.68 and a beta of 0.25. The firm's 50 day simple moving average is $6.58 and its 200-day simple moving average is $7.29.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.