Valhi (NYSE:VHI) Stock Price Breaks Below 200 Day Moving Average - Should You Sell?

Key Points

• Valhi shares fell below their 200-day moving average of $14.93, reaching as low as $14.11 and last trading at $14.31.
• Analyst sentiment remains negative: although some ratings were upgraded, one analyst rates the stock Sell and MarketBeat reports a consensus “Sell” rating.
• Valhi missed quarterly earnings expectations, reporting $0.78 in EPS versus the $0.96 consensus estimate, while maintaining a $0.08 quarterly dividend, equivalent to a 2.2% yield.

Valhi, Inc. (NYSE:VHI - Get Free Report)'s stock price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $14.93 and traded as low as $14.11. Valhi shares last traded at $14.31, with a volume of 4,587 shares changing hands.

Analyst Ratings Changes

VHI has been the subject of a number of research analyst reports. Weiss Ratings upgraded Valhi from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, August 17th. Wall Street Zen upgraded Valhi to a "buy" rating in a report on Saturday, September 19th. One equities research analyst has rated the stock with a Sell rating. According to data from MarketBeat, the company presently has a consensus rating of "Sell".

Valhi Trading Up 0.5%

The firm has a market capitalization of $405.26 million, a price-to-earnings ratio of -7.99 and a beta of 1.06. The company has a fifty day moving average price of $16.50 and a 200-day moving average price of $14.93. The company has a current ratio of 3.37, a quick ratio of 1.90 and a debt-to-equity ratio of 0.42.

Valhi (NYSE:VHI - Get Free Report) last released its quarterly earnings data 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). The firm had revenue of $606.10 million during the quarter, compared to analyst estimates of $606.10 million. Valhi had a negative return on equity of 2.77% and a negative net margin of 2.36%.

Valhi Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were given a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Thursday, September 3rd. Valhi's payout ratio is currently -17.88%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of VHI. BlackRock Inc. acquired a new stake in shares of Valhi in the 2nd quarter valued at $2,776,000. Empowered Funds LLC bought a new stake in Valhi in the second quarter worth $2,055,000. Bank of New York Mellon Corp acquired a new position in Valhi during the second quarter worth $687,000. GSA Capital Partners LLP acquired a new position in Valhi during the second quarter worth $321,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in Valhi during the second quarter worth $148,000. Institutional investors 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.

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.