Valhi (NYSE:VHI) Sees Strong Trading Volume - What's Next?

Key Points

• Valhi shares traded at $18.305 during midday Tuesday, up from the prior close of $18.04, while volume fell 34% to about 11,692 shares.
• Analyst sentiment remains negative: Weiss Ratings raised its rating only slightly from “sell (d)” to “sell (d+),” and Valhi’s average MarketBeat rating is “Sell.” The company also missed quarterly EPS estimates, reporting $0.78 versus the $0.96 consensus.
• Valhi declared a quarterly dividend of $0.08 per share, equivalent to $0.32 annually and a 1.8% yield. Institutional investors own 3.83% of the company’s stock.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) saw strong trading volume on Tuesday . Approximately 11,692 shares traded hands during mid-day trading, a decline of 34% from the previous session's volume of 17,626 shares.The stock last traded at $18.3050 and had previously closed at $18.04.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised Valhi from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, August 17th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Valhi presently has an average rating of "Sell".

Valhi Stock Performance

The company has a fifty day moving average of $15.40 and a 200 day moving average of $14.49. The company has a debt-to-equity ratio of 0.42, a current ratio of 3.37 and a quick ratio of 1.90. The stock has a market cap of $515.85 million, a P/E ratio of -10.18 and a beta of 1.03.

Valhi (NYSE:VHI - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.18). The firm had revenue of $606.10 million for the quarter, compared to analyst estimates of $606.10 million. Valhi had a negative net margin of 2.36% and a negative return on equity of 2.77%.

Valhi Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be given a $0.08 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $0.32 annualized dividend and a yield of 1.8%. Valhi's payout ratio is -17.88%.

Hedge Funds Weigh In On Valhi

Large investors have recently made changes to their positions in the business. Raymond James Financial Inc. bought a new stake in shares of Valhi in the 2nd quarter worth approximately $31,000. Wells Fargo & Company MN grew its position in Valhi by 46.1% in the fourth quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company's stock worth $33,000 after buying an additional 859 shares during the last quarter. JPMorgan Chase & Co. grew its position in Valhi by 133.9% in the second quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company's stock worth $79,000 after buying an additional 2,786 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Valhi in the fourth quarter valued at $80,000. Finally, Deutsche Bank AG increased its holdings in shares of Valhi by 145.0% in the fourth quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock valued at $84,000 after buying an additional 4,146 shares in the last quarter. Institutional investors own 3.83% of the company's stock.

Valhi Company Profile

Valhi, Inc is a diversified holding company incorporated in Delaware in 1987 and headquartered in Dallas, Texas. Through its three wholly owned subsidiaries—Kronos Worldwide, CompX International and NL Industries—Valhi participates in the manufacture and distribution of chemical and security products for industrial, commercial and consumer markets.

Kronos Worldwide is a leading independent producer of titanium dioxide pigment, a white powder that enhances brightness and opacity in paints, coatings, plastics, paper and other applications.

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