Valhi (NYSE:VHI) Shares Gap Down – Should You Sell?

Valhi, Inc. (NYSE:VHI) gapped down prior to trading on Wednesday . The stock had previously closed at $18.69, but opened at $18.02. Valhi shares last traded at $17.8350, with a volume of 373 shares traded.

Analyst Ratings Changes

Separately, Weiss Ratings upgraded Valhi from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, August 17th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has a consensus rating of “Sell”.

Valhi Stock Down 0.9%

The company’s 50 day moving average is $15.07 and its 200 day moving average is $14.42. The company has a market cap of $507.29 million, a PE ratio of -10.06 and a beta of 0.97. The company has a current ratio of 3.37, a quick ratio of 1.90 and a debt-to-equity ratio of 0.42.

Valhi (NYSE:VHI) last released its quarterly earnings data on Thursday, August 6th. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.18). The company had revenue of $606.10 million during the quarter, compared to analysts’ expectations of $606.10 million. Valhi had a negative net margin of 2.36% and a negative return on equity of 2.77%.

Valhi Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a $0.08 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.8%. Valhi’s payout ratio is presently -17.88%.

Institutional Investors Weigh In On Valhi

Institutional investors and hedge funds have recently bought and sold shares of the company. Empowered Funds LLC purchased a new stake in shares of Valhi in the 2nd quarter worth $2,055,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Valhi during the second quarter valued at $148,000. BlackRock Inc. bought a new stake in shares of Valhi in the second quarter valued at about $2,776,000. Bank of New York Mellon Corp purchased a new stake in Valhi in the second quarter worth about $687,000. Finally, GSA Capital Partners LLP purchased a new stake in Valhi in the second quarter worth about $321,000. 3.83% of the stock is owned by institutional investors.

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.