Valhi (NYSE:VHI) Stock Passes Below 200-Day Moving Average - What's Next?

Key Points

• Valhi recently dipped below its 200‑day moving average, trading as low as $13.54 versus a 200‑day MA of $14.02 after intraday weakness.
• The company reported a major earnings miss — ($1.86) EPS vs. $0.86 expected — along with negative net margin and return on equity, contributing to a negative trailing P/E.
• Analyst sentiment is weak, with an average rating of "Sell" and a consensus price target of $12.00, though a few shops have recently adjusted their views (one upgrade to "Hold").

Valhi, Inc. (NYSE:VHI - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $14.02 and traded as low as $13.54. Valhi shares last traded at $14.0360, with a volume of 18,476 shares changing hands.

Wall Street Analysts Forecast Growth

VHI has been the topic of a number of recent research reports. Weiss Ratings restated a "sell (d+)" rating on shares of Valhi in a report on Monday, December 29th. Wall Street Zen raised Valhi from a "sell" rating to a "hold" rating in a report on Saturday, March 14th. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat, Valhi currently has an average rating of "Sell" and a consensus price target of $12.00.

Valhi Stock Performance

The firm's 50 day simple moving average is $14.31 and its 200-day simple moving average is $14.02. The company has a market capitalization of $397.25 million, a price-to-earnings ratio of -6.95 and a beta of 1.19. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.33 and a current ratio of 2.80.

Valhi (NYSE:VHI - Get Free Report) last issued its earnings results on Tuesday, March 10th. The basic materials company reported ($1.86) EPS for the quarter, missing the consensus estimate of $0.86 by ($2.72). The business had revenue of $494.50 million during the quarter. Valhi had a negative return on equity of 3.20% and a negative net margin of 2.77%.

Valhi Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be issued a $0.08 dividend. The ex-dividend date is Monday, March 16th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.3%. Valhi's dividend payout ratio is currently -15.84%.

Institutional Trading of Valhi

Several institutional investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. increased its stake in shares of Valhi by 133.9% during 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 last quarter. Rhumbline Advisers lifted its stake in shares of Valhi by 79.9% in the 3rd quarter. Rhumbline Advisers now owns 7,520 shares of the basic materials company's stock valued at $119,000 after purchasing an additional 3,341 shares during the last quarter. Empowered Funds LLC boosted its holdings in Valhi by 1.9% in the first quarter. Empowered Funds LLC now owns 144,202 shares of the basic materials company's stock worth $2,343,000 after purchasing an additional 2,753 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Valhi by 3.6% in the second quarter. Geode Capital Management LLC now owns 56,110 shares of the basic materials company's stock worth $907,000 after purchasing an additional 1,933 shares in the last quarter. Finally, Millennium Management LLC acquired a new position in Valhi during the fourth quarter worth $201,000. 3.83% of the stock is currently owned by institutional investors and hedge funds.

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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