Valhi (NYSE:VHI) Shares Gap Down - Here's Why

Key Points

• Valhi shares gapped down from a prior close of $18.69 to open at $18.02, later trading near $17.84 on low volume.
• Investor sentiment remains weak: Weiss Ratings upgraded the stock only from “sell (d)” to “sell (d+),” while the consensus analyst rating remains Sell.
• Valhi’s latest quarterly results missed expectations, with EPS of $0.78 versus the $0.96 consensus estimate, despite revenue matching estimates at $606.1 million.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $18.69, but opened at $18.02. Valhi shares last traded at $17.8350, with a volume of 373 shares traded.

Analysts Set New Price Targets

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

Valhi Stock Performance

The business's fifty day moving average price is $15.07 and its two-hundred day moving average price is $14.42. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.90 and a current ratio of 3.37. The stock has a market capitalization of $507.29 million, a P/E ratio of -10.06 and a beta of 0.97.

Valhi (NYSE:VHI - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The basic materials company reported $0.78 EPS for the quarter, missing analysts' consensus estimates 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 business had revenue of $606.10 million during the quarter, compared to the consensus estimate of $606.10 million.

Valhi Announces Dividend

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

Institutional Trading of Valhi

Institutional investors have recently bought and sold shares of the stock. Wells Fargo & Company MN boosted its stake in Valhi by 46.1% during 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 period. Empowered Funds LLC raised its stake in shares of Valhi by 1.9% in the first quarter. Empowered Funds LLC now owns 144,202 shares of the basic materials company's stock valued at $2,343,000 after acquiring an additional 2,753 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Valhi by 3.6% in the 2nd quarter. Geode Capital Management LLC now owns 56,110 shares of the basic materials company's stock worth $907,000 after acquiring an additional 1,933 shares during the last quarter. Deutsche Bank AG lifted its holdings in shares of Valhi by 145.0% in the 4th quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock worth $84,000 after acquiring an additional 4,146 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in shares of Valhi during the 4th quarter worth about $80,000. 3.83% of the stock is currently owned by institutional investors.

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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