Valhi (NYSE:VHI) Shares Cross Below 200-Day Moving Average - Should You Sell?

Key Points

• Valhi, Inc. (NYSE: VHI) shares have fallen below their 200-day moving average of $16.37, currently trading at $14.38.
• Analysts have set an average target price of $12.00 for Valhi, with ratings of "Hold" and "Sell" reflecting caution in the stock's outlook.
• Valhi has announced a quarterly dividend of $0.08 per share, representing a 2.2% yield based on its current stock price.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $16.37 and traded as low as $14.38. Valhi shares last traded at $14.38, with a volume of 25,158 shares.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Valhi in a report on Wednesday. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $12.00.

Valhi Stock Performance

The stock has a market cap of $406.95 million, a price-to-earnings ratio of 4.19 and a beta of 1.17. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.35 and a current ratio of 2.83. The company's 50 day simple moving average is $16.16 and its 200 day simple moving average is $16.37.

Valhi (NYSE:VHI - Get Free Report) last released its earnings results on Thursday, August 7th. The basic materials company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.76 by ($0.73). The company had revenue of $540.40 million for the quarter. Valhi had a net margin of 4.69% and a return on equity of 7.02%.

Valhi Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 25th. Stockholders of record on Friday, September 5th were given a dividend of $0.08 per share. The ex-dividend date was Friday, September 5th. This represents a $0.32 annualized dividend and a dividend yield of 2.2%. Valhi's dividend payout ratio (DPR) is 9.33%.

Hedge Funds Weigh In On Valhi

Several large investors have recently made changes to their positions in VHI. Millennium Management LLC bought a new position in shares of Valhi during the 4th quarter valued at about $203,000. GAMMA Investing LLC boosted its position in shares of Valhi by 6,670.8% during the 1st quarter. GAMMA Investing LLC now owns 1,625 shares of the basic materials company's stock valued at $26,000 after purchasing an additional 1,601 shares in the last quarter. CWA Asset Management Group LLC boosted its position in shares of Valhi by 11.2% during the 1st quarter. CWA Asset Management Group LLC now owns 18,512 shares of the basic materials company's stock valued at $301,000 after purchasing an additional 1,870 shares in the last quarter. Segall Bryant & Hamill LLC bought a new position in shares of Valhi during the 1st quarter valued at about $1,011,000. Finally, Bridgeway Capital Management LLC boosted its position in shares of Valhi by 1.2% during the 1st quarter. Bridgeway Capital Management LLC now owns 237,729 shares of the basic materials company's stock valued at $3,863,000 after purchasing an additional 2,753 shares in the last quarter. Institutional investors own 3.83% of the company's stock.

Valhi Company Profile

Valhi, Inc engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company's Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers.

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