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

Key Points

• Valhi, Inc. stock (NYSE: VHI) has fallen below its 200-day moving average, trading at $15.75, compared to a 200-day average of $16.48.
• The company reported a significant earnings miss in its latest quarter, with earnings per share of $0.03, falling short of the expected $0.76 by $0.73.
• Valhi recently announced a quarterly dividend of $0.08, providing an annual yield of 2.0% with a payout ratio of 9.33%.

Shares of Valhi, Inc. (NYSE:VHI - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $16.48 and traded as low as $15.56. Valhi shares last traded at $15.75, with a volume of 4,836 shares.

Valhi Stock Performance

The company's 50 day moving average price is $16.34 and its 200-day moving average price is $16.48. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.35 and a current ratio of 2.83. The company has a market cap of $445.58 million, a PE ratio of 4.59 and a beta of 1.17.

Valhi (NYSE:VHI - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The basic materials company reported $0.03 earnings per share for the quarter, missing analysts' consensus estimates 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 during the quarter.

Valhi Announces Dividend

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Raymond James Financial Inc. purchased a new position in Valhi in the 2nd quarter valued at approximately $31,000. JPMorgan Chase & Co. grew 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 valued at $79,000 after buying an additional 2,786 shares in the last quarter. Geode Capital Management LLC grew its stake in Valhi by 3.6% in the 2nd quarter. Geode Capital Management LLC now owns 56,110 shares of the basic materials company's stock valued at $907,000 after buying an additional 1,933 shares in the last quarter. Strs Ohio purchased a new position in Valhi in the 1st quarter valued at approximately $289,000. Finally, Empowered Funds LLC boosted its holdings in Valhi by 1.9% in the 1st quarter. Empowered Funds LLC now owns 144,202 shares of the basic materials company's stock valued at $2,343,000 after purchasing an additional 2,753 shares during the period. 3.83% of the stock is currently owned by hedge funds and other institutional investors.

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.

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