Valhi (NYSE:VHI) Share Price Passes Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Valhi, Inc. shares fell below their 200-day moving average of $17.05, trading as low as $16.51, and currently stand at $16.99.
• Analysts have mixed outlooks for Valhi; Barclays lowered its price target from $20 to $12 with an "underweight" rating, while Wall Street Zen upgraded it from "hold" to "buy."
• Valhi recently announced a quarterly dividend of $0.08 per share, with a yield of 1.9%, to be paid on September 25th for shareholders of record as of September 5th.

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 $17.05 and traded as low as $16.51. Valhi shares last traded at $16.99, with a volume of 19,099 shares trading hands.

Analysts Set New Price Targets

VHI has been the topic of a number of research analyst reports. Barclays lowered their price objective on shares of Valhi from $20.00 to $12.00 and set an "underweight" rating on the stock in a research note on Wednesday, May 28th. Wall Street Zen upgraded shares of Valhi from a "hold" rating to a "buy" rating in a research note on Tuesday, May 20th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, Valhi presently has an average rating of "Sell" and a consensus price target of $12.00.

Valhi Stock Performance

The company has a quick ratio of 1.35, a current ratio of 2.83 and a debt-to-equity ratio of 0.38. The stock has a market cap of $452.86 million, a price-to-earnings ratio of 4.67 and a beta of 1.32. The company's 50-day simple moving average is $16.85 and its 200-day simple moving average is $16.91.

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

Valhi Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Friday, September 5th will be paid a $0.08 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $0.32 dividend on an annualized basis and a yield of 2.0%. Valhi's dividend payout ratio (DPR) is currently 9.33%.

Hedge Funds Weigh In On Valhi

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its stake in Valhi by 6,670.8% in the 1st quarter. GAMMA Investing LLC now owns 1,625 shares of the basic materials company's stock worth $26,000 after purchasing an additional 1,601 shares during the period. Raymond James Financial Inc. acquired a new position in Valhi in the 2nd quarter worth approximately $31,000. Public Employees Retirement System of Ohio boosted its stake in Valhi by 105.8% in the 4th quarter. Public Employees Retirement System of Ohio now owns 2,488 shares of the basic materials company's stock worth $58,000 after purchasing an additional 1,279 shares during the period. JPMorgan Chase & Co. boosted its stake in Valhi by 133.9% in the 2nd quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company's stock worth $79,000 after purchasing an additional 2,786 shares during the period. Finally, BNP Paribas Financial Markets acquired a new position in Valhi in the 4th quarter worth approximately $202,000. Institutional investors and hedge funds own 3.83% of the company's stock.

About Valhi

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.