Valhi (NYSE:VHI) Share Price Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Valhi shares fell below their 200-day moving average of $14.89, trading as low as $14.63 before last changing hands at $15.1950.
• Analyst sentiment remains weak: the stock has an average “Sell” rating, despite one research firm upgrading it to “Buy.”
• Valhi reported quarterly EPS of $0.78, missing the $0.96 consensus estimate, while maintaining a quarterly dividend of $0.08 per share, equivalent to a 2.1% yield.

Valhi, Inc. (NYSE:VHI - Get Free Report) crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $14.89 and traded as low as $14.63. Valhi shares last traded at $15.1950, with a volume of 3,542 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Wall Street Zen raised Valhi to a "buy" rating in a report on Saturday, September 19th. Weiss Ratings upgraded Valhi from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, August 17th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock currently has an average rating of "Sell".

Valhi Stock Up 3.0%

The firm's fifty day simple moving average is $16.53 and its two-hundred day simple moving average is $14.89. The company has a current ratio of 3.37, a quick ratio of 1.90 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $430.32 million, a price-to-earnings ratio of -8.49 and a beta of 1.06.

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

Valhi Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were paid a dividend of $0.08 per share. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.32 annualized dividend and a yield of 2.1%. Valhi's dividend payout ratio (DPR) is -17.88%.

Hedge Funds Weigh In On Valhi

Large investors have recently modified their holdings of the business. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Valhi during the 2nd quarter worth $148,000. GSA Capital Partners LLP purchased a new stake in Valhi in the 2nd quarter valued at about $321,000. Bank of New York Mellon Corp acquired a new position in Valhi in the second quarter valued at about $687,000. Empowered Funds LLC acquired a new position in Valhi in the second quarter valued at about $2,055,000. Finally, BlackRock Inc. purchased a new position in Valhi during the second quarter worth about $2,776,000. Institutional investors and hedge funds own 3.83% of the company's stock.

Valhi Company Profile

Valhi, Inc is a diversified holding company headquartered in Dallas, Texas. Through its subsidiaries and affiliates, the company has interests in chemicals, component products, real estate management and other industrial businesses. Valhi's portfolio is managed through controlling or significant ownership positions rather than through a single operating business.

A major part of Valhi's operations is its investment in Kronos Worldwide, a producer and marketer of titanium dioxide pigments.

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