Valhi (NYSE:VHI) Stock Passes Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Valhi shares slipped below their 200-day moving average, trading as low as $13.57 versus a 200-day average of $14.06. The stock last traded at $13.8680 on light volume.
• Sentiment remains weak, with Weiss Ratings reaffirming a “sell (d)” rating and MarketBeat showing an overall average rating of “Sell” for the stock.
• Recent fundamentals were disappointing: Valhi reported Q1 earnings of $0.07 per share, far below the $0.77 consensus estimate, while revenue also came in slightly under expectations.

Valhi, Inc. (NYSE:VHI - Get Free Report) passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $14.06 and traded as low as $13.57. Valhi shares last traded at $13.8680, with a volume of 7,362 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Valhi in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Valhi presently has an average rating of "Sell".

Valhi Trading Up 2.2%

The stock has a market cap of $398.75 million, a price-to-earnings ratio of -5.55 and a beta of 0.96. The business's fifty day simple moving average is $13.86 and its 200 day simple moving average is $14.06. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.25 and a quick ratio of 1.74.

Valhi (NYSE:VHI - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The basic materials company reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.77 by ($0.70). Valhi had a negative return on equity of 4.29% and a negative net margin of 3.45%.The business had revenue of $560.10 million during the quarter, compared to analyst estimates of $564.20 million.

Valhi Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were issued a dividend of $0.08 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.32 annualized dividend and a dividend yield of 2.3%. Valhi's payout ratio is -12.60%.

Institutional Investors Weigh In On Valhi

A number of hedge funds and other institutional investors have recently modified their holdings of VHI. Raymond James Financial Inc. bought a new stake in shares of Valhi during the second quarter valued at about $31,000. Wells Fargo & Company MN raised its position 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 worth $33,000 after acquiring an additional 859 shares in the last quarter. JPMorgan Chase & Co. raised its position in Valhi by 133.9% in the second quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company's stock worth $79,000 after acquiring an additional 2,786 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Valhi in the fourth quarter worth about $80,000. Finally, Deutsche Bank AG raised its position in Valhi by 145.0% in 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.

About Valhi

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.