Omega Flex (NASDAQ:OFLX) Stock Crosses Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Omega Flex shares slipped below their 200-day moving average, trading as low as $29.68 before last changing hands at $31.39. The 200-day average is $31.81, making the move a potentially bearish technical signal.
• Sentiment on the stock remains weak, as Weiss Ratings downgraded Omega Flex from “hold (c-)” to “sell (d+),” and MarketBeat data shows a consensus rating of “Sell.”
• The company continues to pay a sizable dividend, with a quarterly payout of $0.34 per share, or $1.36 annualized, for a yield of 4.3%. However, the dividend payout ratio is above 100%, at 102.26%.

Shares of Omega Flex, Inc. (NASDAQ:OFLX - Get Free Report) passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $31.81 and traded as low as $29.68. Omega Flex shares last traded at $31.39, with a volume of 67,766 shares changing hands.

Analyst Ratings Changes

Separately, Weiss Ratings lowered shares of Omega Flex from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Omega Flex currently has a consensus rating of "Sell".

Omega Flex Stock Performance

The business's fifty day simple moving average is $30.09 and its 200 day simple moving average is $31.81. The stock has a market cap of $316.73 million, a price-to-earnings ratio of 23.60 and a beta of 0.46.

Omega Flex (NASDAQ:OFLX - Get Free Report) last announced its earnings results on Friday, May 1st. The industrial products company reported $0.21 earnings per share for the quarter. Omega Flex had a return on equity of 15.94% and a net margin of 13.60%.The company had revenue of $23.09 million during the quarter.

Omega Flex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Tuesday, June 23rd were issued a $0.34 dividend. The ex-dividend date of this dividend was Tuesday, June 23rd. This represents a $1.36 dividend on an annualized basis and a yield of 4.3%. Omega Flex's dividend payout ratio is currently 102.26%.

Institutional Investors Weigh In On Omega Flex

Hedge funds have recently bought and sold shares of the business. CANADA LIFE ASSURANCE Co acquired a new position in shares of Omega Flex in the 4th quarter valued at approximately $32,000. Russell Investments Group Ltd. grew its position in shares of Omega Flex by 65.2% during the fourth quarter. Russell Investments Group Ltd. now owns 1,120 shares of the industrial products company's stock worth $33,000 after buying an additional 442 shares in the last quarter. Comerica Bank grew its position in shares of Omega Flex by 313.1% during the fourth quarter. Comerica Bank now owns 1,231 shares of the industrial products company's stock worth $36,000 after buying an additional 933 shares in the last quarter. Fifth Third Bancorp bought a new stake in shares of Omega Flex in the first quarter worth $46,000. Finally, Versant Capital Management Inc increased its stake in shares of Omega Flex by 912.1% in the second quarter. Versant Capital Management Inc now owns 1,670 shares of the industrial products company's stock worth $52,000 after buying an additional 1,505 shares during the last quarter. Institutional investors and hedge funds own 36.06% of the company's stock.

About Omega Flex

Omega Flex, Inc designs, manufactures and distributes flexible metal tubing and related products that enable the safe and efficient conveyance of natural gas and other hydrocarbon fuels. The company's engineered solutions offer leak-resistant connections and installation flexibility, serving original equipment manufacturers, distributors and end-users across residential, commercial and industrial markets.

Its product portfolio includes corrugated stainless steel tubing (CSST), stainless steel hose assemblies, mechanical connectors, fittings, leak detection equipment and specialized installation tools.

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