Short Interest in Valhi, Inc. (NYSE:VHI) Grows By 24.3%

Key Points

• Short interest in Valhi rose by 24.3% in March to 67,454 shares, representing a short-interest ratio of 3.1 days and about 0.2% of the company's shares sold short.
• Valhi reported a large quarterly earnings miss, posting EPS of ($1.86) versus a $0.86 consensus and showing a negative net margin (-2.77%) and negative return on equity (~-3.2%).
• The company declared a $0.08 quarterly dividend (annualized $0.32, ~2.3% yield) while analysts maintain a consensus “Sell” rating with a $12 price target and the stock trades around $14.22 (market cap ≈ $402M).

Valhi, Inc. (NYSE:VHI - Get Free Report) was the target of a significant increase in short interest in the month of March. As of March 13th, there was short interest totaling 67,454 shares, an increase of 24.3% from the February 26th total of 54,269 shares. Based on an average daily volume of 21,605 shares, the short-interest ratio is presently 3.1 days. Approximately 0.2% of the company's shares are sold short.

Valhi Trading Up 1.0%

Shares of VHI stock traded up $0.15 on Monday, hitting $14.22. The stock had a trading volume of 10,831 shares, compared to its average volume of 24,152. Valhi has a twelve month low of $11.44 and a twelve month high of $20.00. The firm has a market cap of $402.31 million, a P/E ratio of -7.04 and a beta of 1.19. The company has a current ratio of 2.80, a quick ratio of 1.33 and a debt-to-equity ratio of 0.43. The company has a fifty day moving average price of $14.32 and a two-hundred day moving average price of $13.96.

Valhi (NYSE:VHI - Get Free Report) last issued its quarterly earnings data on Tuesday, March 10th. The basic materials company reported ($1.86) EPS for the quarter, missing the consensus estimate of $0.86 by ($2.72). The business had revenue of $494.50 million for the quarter. Valhi had a negative return on equity of 3.20% and a negative net margin of 2.77%.

Valhi Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Monday, March 16th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.3%. Valhi's dividend payout ratio (DPR) is currently -15.84%.

Analyst Ratings Changes

VHI has been the topic of several analyst reports. Weiss Ratings reissued a "sell (d+)" rating on shares of Valhi in a research note on Monday, December 29th. Wall Street Zen raised Valhi from a "sell" rating to a "hold" rating in a research note on Saturday, March 14th. Two equities research analysts have rated the stock with a Sell rating, According to MarketBeat, the company presently has a consensus rating of "Sell" and a consensus price target of $12.00.

Hedge Funds Weigh In On Valhi

Several institutional investors and hedge funds have recently modified their holdings of the business. Raymond James Financial Inc. bought a new stake in Valhi during the 2nd quarter worth approximately $31,000. Wells Fargo & Company MN lifted its stake in Valhi by 46.1% in the fourth quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company's stock valued at $33,000 after buying an additional 859 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Valhi by 133.9% in the second quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company's stock valued at $79,000 after buying an additional 2,786 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Valhi in the fourth quarter valued at approximately $80,000. Finally, Deutsche Bank AG increased its position in shares of Valhi by 145.0% during the fourth 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 in the last quarter. 3.83% of the stock is currently owned by institutional investors and hedge funds.

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.