Valhi (NYSE:VHI) Stock Passes Above 50 Day Moving Average - What's Next?

Key Points

• Price action: Shares briefly passed above its 50‑day moving average ($14.22), trading as high as $14.47, though the last trade was $13.93 on light volume (8,252 shares).
• Analyst view: The consensus rating is "Sell" with a $12.00 average price target; Weiss Ratings reiterated a sell while Wall Street Zen recently upgraded to hold.
• Fundamentals: Valhi reported a large earnings miss (EPS $(1.86) vs. $0.86 expected), has negative net margin and ROE, a market cap of about $394M, and pays a $0.32 annualized dividend (~2.3% yield).

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) passed above its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $14.22 and traded as high as $14.47. Valhi shares last traded at $13.93, with a volume of 8,252 shares.

Analysts Set New Price Targets

A number of research firms have commented on VHI. Weiss Ratings reissued a "sell (d)" rating on shares of Valhi in a research note on Friday, April 10th. Wall Street Zen upgraded shares of Valhi from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the stock presently has an average rating of "Sell" and a consensus target price of $12.00.

Valhi Trading Down 1.2%

The firm has a market capitalization of $394.22 million, a PE ratio of -6.90 and a beta of 1.12. The firm's 50-day simple moving average is $14.22 and its 200-day simple moving average is $13.78. The company has a quick ratio of 1.33, a current ratio of 2.80 and a debt-to-equity ratio of 0.43.

Valhi (NYSE:VHI - Get Free Report) last released its quarterly earnings data on Tuesday, March 10th. The basic materials company reported ($1.86) earnings per share for the quarter, missing analysts' consensus estimates of $0.86 by ($2.72). The company had revenue of $494.50 million for the quarter. Valhi had a negative net margin of 2.77% and a negative return on equity of 3.20%.

Valhi Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Monday, March 16th. Valhi's payout ratio is -15.84%.

Hedge Funds Weigh In On Valhi

A number of hedge funds have recently bought and sold shares of the company. Raymond James Financial Inc. bought a new position in Valhi in the 2nd quarter valued at approximately $31,000. Wells Fargo & Company MN lifted its holdings in shares of Valhi by 46.1% during the fourth quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 859 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Valhi by 133.9% during 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 in the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Valhi during the fourth quarter valued at $80,000. Finally, Deutsche Bank AG lifted its holdings in shares of Valhi by 145.0% during the fourth quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock valued at $84,000 after purchasing an additional 4,146 shares in the last quarter. Institutional investors own 3.83% of the company's stock.

Valhi Company Profile

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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