Valhi (NYSE:VHI) Shares Cross Below 200 Day Moving Average - Should You Sell?

Key Points

• Valhi, Inc. (NYSE:VHI) shares dropped below their 200-day moving average to $15.54, down from a 200-day average of $17.36, indicating a potential bearish trend.
• Barclays has downgraded Valhi's price target from $20.00 to $12.00 while Wall Street Zen upgraded the stock from a "hold" to a "buy" rating in recent reports.
• The company reported a missed EPS estimate of $0.59 for the quarter, alongside a quarterly dividend of $0.08 per share, reflecting a 2.1% dividend yield.

Valhi, Inc. (NYSE:VHI - Get Free Report) passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $17.36 and traded as low as $15.42. Valhi shares last traded at $15.54, with a volume of 9,324 shares trading hands.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Wall Street Zen upgraded Valhi from a "hold" rating to a "buy" rating in a research note 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.

Valhi Stock Down 0.5%

The stock has a market capitalization of $436.53 million, a P/E ratio of 4.50 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. The company has a fifty day moving average price of $16.62 and a 200-day moving average price of $17.15.

Valhi (NYSE:VHI - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The basic materials company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.76 by ($0.73). The company had revenue of $540.40 million during the quarter. Valhi had a return on equity of 7.02% and a net margin of 4.69%.

Valhi Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Friday, September 5th will be given a $0.08 dividend. The ex-dividend date is Friday, September 5th. This represents a $0.32 annualized dividend and a yield of 2.1%. Valhi's dividend payout ratio (DPR) is currently 9.33%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in VHI. 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. Public Employees Retirement System of Ohio boosted its position in shares of Valhi by 105.8% during 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 buying an additional 1,279 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Valhi by 276.3% during the fourth quarter. JPMorgan Chase & Co. now owns 5,565 shares of the basic materials company's stock valued at $130,000 after buying an additional 4,086 shares during the period. BNP Paribas Financial Markets purchased a new position in shares of Valhi during the fourth quarter valued at approximately $202,000. Finally, Millennium Management LLC purchased a new position in shares of Valhi during the fourth quarter valued at approximately $203,000. Hedge funds and other institutional investors own 3.83% of the company's stock.

Valhi Company Profile

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.