Omega Flex (NASDAQ:OFLX) Stock Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Omega Flex shares fell below their 200-day moving average, trading as low as $25.76 versus the $29.45 average, before closing at $26.23.
• Analyst sentiment remains negative: Weiss Ratings reaffirmed a “sell (d+)” rating, and the stock has a consensus “Sell” rating based on one analyst’s coverage.
• The company reported quarterly revenue of $24.06 million and earnings of $0.27 per share, while announcing a $0.34 quarterly dividend yielding about 5.2%; its 114.29% payout ratio exceeds reported earnings.

Omega Flex, Inc. (NASDAQ:OFLX - Get Free Report) passed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $29.45 and traded as low as $25.76. Omega Flex shares last traded at $26.23, with a volume of 49,512 shares changing hands.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "sell (d+)" rating on shares of Omega Flex in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, Omega Flex currently has a consensus rating of "Sell".

Omega Flex Price Performance

The stock has a 50 day moving average price of $26.95 and a 200-day moving average price of $29.45. The stock has a market capitalization of $264.66 million, a price-to-earnings ratio of 22.04 and a beta of 0.44.

Omega Flex (NASDAQ:OFLX - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The industrial products company reported $0.27 EPS for the quarter. Omega Flex had a return on equity of 14.26% and a net margin of 12.27%. The firm had revenue of $24.06 million during the quarter.

Omega Flex Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date is Wednesday, September 30th. Omega Flex's dividend payout ratio is 114.29%.

Hedge Funds Weigh In On Omega Flex

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Fifth Third Bancorp acquired a new position in shares of Omega Flex in the first quarter valued at approximately $46,000. Versant Capital Management Inc increased its stake in Omega Flex by 912.1% during the 2nd 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 period. Deutsche Bank AG acquired a new stake in Omega Flex during the 2nd quarter worth approximately $121,000. Bank of New York Mellon Corp lifted its holdings in Omega Flex by 8.2% during the 1st quarter. Bank of New York Mellon Corp now owns 53,321 shares of the industrial products company's stock worth $1,655,000 after buying an additional 4,055 shares in the last quarter. Finally, Canada Pension Plan Investment Board acquired a new stake in Omega Flex during the 2nd quarter worth approximately $217,000. 36.06% of the stock is currently owned by institutional investors and hedge funds.

About Omega Flex

Omega Flex, Inc NASDAQ: OFLX develops and manufactures flexible metal piping systems. The company is best known for corrugated stainless steel tubing (CSST) used in natural gas and propane distribution systems for residential, commercial and industrial applications.

Its product portfolio includes TracPipe and CounterStrike flexible gas piping systems, which are designed to simplify installation compared with traditional rigid piping. Omega Flex also offers products for specialized applications, including DoubleTrac containment systems and MediTrac medical gas piping.

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