Valhi (NYSE:VHI) Stock Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Valhi shares rose 5.5%, reaching $14.98 and moving above the 200-day average of $14.74, although they remained below the 50-day average of $16.06.
• Analyst sentiment remains cautious: Valhi carries an average “Sell” rating, despite one research service upgrading the stock to “Buy.” The company also missed quarterly EPS estimates, reporting $0.78 versus the expected $0.96.
• Valhi paid a quarterly dividend of $0.08 per share, representing an annualized dividend of $0.32 and a 2.2% yield. Institutional investors own a relatively small 3.83% stake in the company.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $14.74 and traded as high as $14.98. Valhi shares last traded at $14.8810, with a volume of 16,975 shares traded.

Analysts Set New Price Targets

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

Valhi Trading Up 5.5%

The business has a 50 day moving average of $16.06 and a two-hundred day moving average of $14.74. 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 firm has a market capitalization of $421.43 million, a price-to-earnings ratio of -8.31 and a beta of 1.06.

Valhi (NYSE:VHI - Get Free Report) last posted 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). 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 analyst estimates of $606.10 million.

Valhi Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were given 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 dividend yield of 2.2%. Valhi's payout ratio is presently -17.88%.

Hedge Funds Weigh In On Valhi

Several large investors have recently added to or reduced their stakes in VHI. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Valhi during the 2nd quarter valued at about $148,000. GSA Capital Partners LLP bought a new stake in Valhi during the 2nd quarter worth approximately $321,000. Bank of New York Mellon Corp purchased a new stake in shares of Valhi in the second quarter worth approximately $687,000. Empowered Funds LLC purchased a new stake in shares of Valhi in the second quarter worth approximately $2,055,000. Finally, BlackRock Inc. bought a new position in shares of Valhi in the second quarter valued at approximately $2,776,000. Institutional investors own 3.83% of the company's stock.

About Valhi

Valhi, Inc is a diversified holding company with interests in chemicals, component products and other industrial businesses. Its operations are conducted primarily through majority-owned subsidiaries, including Kronos Worldwide, Inc, a global producer and marketer of titanium dioxide pigments used to provide whiteness, brightness and opacity in products such as coatings, plastics, paper and inks.

Through CompX International Inc, Valhi also participates in the component-products industry.

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