Valhi (NYSE:VHI) Share Price Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• Valhi, Inc. (NYSE:VHI) shares fell below their 200-day moving average of $16.86, trading as low as $16.33 and last reported at $17.55.
• Analysts have mixed opinions on Valhi, with Barclays lowering their target price from $20.00 to $12.00, while Wall Street Zen upgraded the stock from "hold" to "buy," resulting in an overall average rating of "Sell."
• The company announced a quarterly dividend of $0.08, set to be paid on September 25, translating to an annual yield of 1.8%.

Valhi, Inc. (NYSE:VHI - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $16.86 and traded as low as $16.33. Valhi shares last traded at $17.55, with a volume of 12,838 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on VHI. Wall Street Zen upgraded Valhi from a "hold" rating to a "buy" rating in a research report on Tuesday, May 20th. Barclays cut their price objective on Valhi from $20.00 to $12.00 and set an "underweight" rating for the company in a research report on Wednesday, May 28th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company presently has an average rating of "Sell" and an average price target of $12.00.

Valhi Price Performance

The firm's 50 day simple moving average is $16.99 and its 200 day simple moving average is $16.79. The company has a market capitalization of $479.74 million, a PE ratio of 4.94 and a beta of 1.32. The company has a quick ratio of 1.35, a current ratio of 2.83 and a debt-to-equity ratio of 0.38.

Valhi (NYSE:VHI - Get Free Report) last announced its 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). Valhi had a net margin of 4.69% and a return on equity of 7.02%. The business had revenue of $540.40 million for the quarter.

Valhi Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Friday, September 5th will be given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, September 5th. Valhi's payout ratio is 9.33%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. GAMMA Investing LLC boosted its position in shares of Valhi by 6,670.8% during the first quarter. GAMMA Investing LLC now owns 1,625 shares of the basic materials company's stock valued at $26,000 after buying an additional 1,601 shares during the period. Raymond James Financial Inc. purchased a new stake in shares of Valhi in the second quarter valued at approximately $31,000. Public Employees Retirement System of Ohio boosted its holdings in shares of Valhi by 105.8% in the fourth quarter. Public Employees Retirement System of Ohio now owns 2,488 shares of the basic materials company's stock valued at $58,000 after purchasing an additional 1,279 shares during the period. 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 purchasing an additional 2,786 shares during the period. Finally, BNP Paribas Financial Markets purchased a new stake in shares of Valhi in the fourth quarter valued at approximately $202,000. Hedge funds and other institutional investors 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.