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

Key Points

• Valhi shares opened higher, rising from a prior close of $17.77 to $18.46, although trading volume was light at 4,057 shares.
• Analysts remain negative on the stock: Weiss Ratings marginally upgraded its rating from “sell (d)” to “sell (d+),” while the overall consensus rating remains Sell.
• Valhi reported quarterly EPS of $0.78, missing the $0.96 consensus estimate, but matched revenue expectations at $606.1 million. The company also declared a quarterly dividend of $0.08 per share, representing a 1.8% yield.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $17.77, but opened at $18.46. Valhi shares last traded at $18.46, with a volume of 4,057 shares trading hands.

Wall Street Analyst Weigh In

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

Valhi Stock Performance

The firm has a market capitalization of $513.16 million, a P/E ratio of -10.12 and a beta of 0.97. 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 business's 50 day simple moving average is $14.78 and its two-hundred day simple moving average is $14.37.

Valhi (NYSE:VHI - Get Free Report) last issued its 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 during the quarter, compared to analysts' expectations of $606.10 million. Valhi had a negative return on equity of 2.77% and a negative net margin of 2.36%.

Valhi Announces Dividend

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

Institutional Trading of Valhi

Institutional investors and hedge funds have recently modified their holdings of the business. Wells Fargo & Company MN lifted its holdings in shares of Valhi by 46.1% during the fourth quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 859 shares in the last quarter. Geode Capital Management LLC increased its holdings in Valhi by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 59,303 shares of the basic materials company's stock worth $715,000 after buying an additional 1,116 shares in the last quarter. Raymond James Financial Inc. bought a new stake in Valhi in the 2nd quarter worth about $31,000. Empowered Funds LLC increased its holdings in Valhi by 1.9% in the 1st quarter. Empowered Funds LLC now owns 144,202 shares of the basic materials company's stock worth $2,343,000 after buying an additional 2,753 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its position in Valhi by 133.9% in the 2nd 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. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source