Valhi (NYSE:VHI) Stock Crosses Above Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• Valhi shares rose 9.7% and crossed above their 200-day moving average, reaching $16.12 and last trading near $15.82.
• Quarterly revenue of $606.1 million exceeded expectations of $559.69 million, but adjusted EPS of $0.78 fell short of the $0.96 consensus estimate. The company reported a negative net margin and return on equity.
• Valhi paid its quarterly $0.08 dividend, equivalent to a 2.0% yield, while analyst sentiment remained negative: Weiss Ratings reaffirmed a “sell” rating and the consensus rating was “Sell.”

Valhi, Inc. (NYSE:VHI - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a two hundred day moving average of $14.12 and traded as high as $16.12. Valhi shares last traded at $15.8150, with a volume of 42,282 shares trading hands.

The basic materials company reported $0.78 EPS for the quarter, missing analysts' consensus estimates of $0.96 by ($0.18). Valhi had a negative net margin of 3.45% and a negative return on equity of 4.29%. The firm had revenue of $606.10 million during the quarter, compared to analysts' expectations of $559.69 million.

Valhi Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Thursday, June 4th. Valhi's dividend payout ratio (DPR) is -12.60%.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Valhi

Hedge funds have recently bought and sold shares of the stock. Millennium Management LLC acquired a new position in Valhi in the 4th quarter valued at $201,000. Jane Street Group LLC acquired a new position in shares of Valhi in the 4th quarter valued at about $183,000. Deutsche Bank AG grew its holdings in shares of Valhi by 145.0% during the 4th quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock worth $84,000 after purchasing an additional 4,146 shares during the period. Geode Capital Management LLC increased its position in Valhi by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 59,303 shares of the basic materials company's stock worth $715,000 after purchasing an additional 1,116 shares in the last quarter. Finally, Rhumbline Advisers raised its holdings in Valhi by 79.9% in the third quarter. Rhumbline Advisers now owns 7,520 shares of the basic materials company's stock valued at $119,000 after buying an additional 3,341 shares during the period. Hedge funds and other institutional investors own 3.83% of the company's stock.

Valhi Trading Up 9.7%

The company has a debt-to-equity ratio of 0.46, a current ratio of 3.25 and a quick ratio of 1.74. The business's 50-day simple moving average is $14.02 and its two-hundred day simple moving average is $14.12. The stock has a market capitalization of $447.56 million, a price-to-earnings ratio of -6.23 and a beta of 0.97.

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.

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