Valhi (NYSE:VHI) Stock Price Passes Below 200 Day Moving Average - Here's What Happened

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)'s share price crossed 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

A number of brokerages have recently issued reports on VHI. Barclays cut their target price on Valhi from $20.00 to $12.00 and set an "underweight" rating on the stock in a research report on Wednesday, May 28th. Wall Street Zen raised shares of Valhi from a "hold" rating to a "buy" rating in a research note on Tuesday, May 20th.

Valhi Stock Up 1.4%

The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.29 and a current ratio of 2.67. The stock has a market cap of $438.51 million, a price-to-earnings ratio of 4.52 and a beta of 1.32. The business's 50 day moving average is $16.62 and its 200 day moving average is $17.25.

Valhi (NYSE:VHI - Get Free Report) last released its earnings results on Thursday, August 7th. The basic materials company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.76 by ($0.73). The business had revenue of $540.40 million during the quarter. Valhi had a net margin of 4.69% and a return on equity of 7.08%.

Valhi Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Friday, September 5th will be paid a $0.08 dividend. The ex-dividend date is Friday, September 5th. This represents a $0.32 dividend on an annualized basis and a yield of 2.1%. Valhi's payout ratio is 7.80%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of VHI. Segall Bryant & Hamill LLC acquired a new position in Valhi in the first quarter worth approximately $1,011,000. Strs Ohio bought a new stake in Valhi in the first quarter worth approximately $289,000. Jacobs Levy Equity Management Inc. increased its stake in shares of Valhi by 52.9% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 50,414 shares of the basic materials company's stock worth $1,179,000 after purchasing an additional 17,439 shares during the last quarter. O Shaughnessy Asset Management LLC raised its holdings in shares of Valhi by 105.9% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 27,402 shares of the basic materials company's stock valued at $641,000 after purchasing an additional 14,091 shares in the last quarter. Finally, Squarepoint Ops LLC acquired a new stake in shares of Valhi in the 4th quarter valued at $315,000. 3.83% of the stock is owned by institutional investors and hedge funds.

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.