NL Industries (NYSE:NL) Stock Price Passes Below 200-Day Moving Average After Earnings Miss

Key Points

• Shares fell below their 200-day moving average after NL reported Q1 EPS of $0.09 versus a $0.23 consensus, trading as low as $5.86 (last $6.02) despite revenue beating estimates.
• NL increased its quarterly dividend to $0.10 (annualized $0.40), yielding about 6.6%, even though the company shows negative profitability metrics (net margin -23.88%, ROE -9.43%).
• Analysts have a consensus "Sell" rating following downgrades, while institutional ownership is low (~10.67%) and the company has a market cap of roughly $294 million.

Shares of NL Industries, Inc. (NYSE:NL - Get Free Report) crossed below its 200-day moving average during trading on Wednesday following a dissappointing earnings announcement. The stock has a 200-day moving average of $5.86 and traded as low as $5.86. NL Industries shares last traded at $6.02, with a volume of 34,494 shares trading hands.

The basic materials company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.14). The firm had revenue of $40.57 million for the quarter, compared to analysts' expectations of $38.02 million. NL Industries had a negative net margin of 23.88% and a negative return on equity of 9.43%.

NL Industries Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 10th were paid a dividend of $0.10 per share. This is an increase from NL Industries's previous quarterly dividend of $0.09. This represents a $0.40 annualized dividend and a yield of 6.6%. The ex-dividend date of this dividend was Tuesday, March 10th. NL Industries's dividend payout ratio is presently -51.95%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Weiss Ratings lowered shares of NL Industries from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, March 10th. Wall Street Zen upgraded shares of NL Industries to a "sell" rating in a research report on Saturday, February 7th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has a consensus rating of "Sell".

Institutional Investors Weigh In On NL Industries

Several hedge funds have recently bought and sold shares of NL. CANADA LIFE ASSURANCE Co lifted its position in NL Industries by 80.4% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 5,985 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 2,667 shares during the last quarter. Strs Ohio purchased a new stake in shares of NL Industries in the 1st quarter valued at $35,000. Wells Fargo & Company MN boosted its stake in shares of NL Industries by 34.3% in the 4th quarter. Wells Fargo & Company MN now owns 9,445 shares of the basic materials company's stock valued at $52,000 after purchasing an additional 2,413 shares in the last quarter. NewEdge Advisors LLC purchased a new stake in shares of NL Industries in the 4th quarter valued at $57,000. Finally, Money Concepts Capital Corp purchased a new stake in shares of NL Industries in the 1st quarter valued at $92,000. 10.67% of the stock is currently owned by institutional investors.

NL Industries Stock Performance

The company has a market cap of $294.14 million, a PE ratio of -7.82 and a beta of 0.19. The stock's 50 day moving average price is $5.89 and its 200-day moving average price is $5.86.

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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