Valhi (NYSE:VHI) Shares Gap Up – Here’s Why

Shares of Valhi, Inc. (NYSE:VHI) gapped up prior to trading on Friday . The stock had previously closed at $17.77, but opened at $18.46. Valhi shares last traded at $18.46, with a volume of 4,057 shares.

Wall Street Analysts Forecast Growth

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

Valhi Price Performance

The firm’s 50-day moving average is $14.78 and its 200-day moving average is $14.37. The company has a debt-to-equity ratio of 0.42, a current ratio of 3.37 and a quick ratio of 1.90. The company has a market capitalization of $513.16 million, a P/E ratio of -10.12 and a beta of 0.97.

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

Valhi Announces Dividend

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

Hedge Funds Weigh In On Valhi

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Raymond James Financial Inc. purchased a new position in Valhi during the second quarter valued at $31,000. Wells Fargo & Company MN increased its position in Valhi by 46.1% in the fourth quarter. Wells Fargo & Company MN now owns 2,722 shares of the basic materials company’s stock worth $33,000 after buying an additional 859 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Valhi by 133.9% in the second quarter. JPMorgan Chase & Co. now owns 4,867 shares of the basic materials company’s stock worth $79,000 after buying an additional 2,786 shares during the period. Los Angeles Capital Management LLC bought a new position in shares of Valhi in the fourth quarter worth about $80,000. Finally, Deutsche Bank AG raised its stake in shares of Valhi by 145.0% in the fourth quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company’s stock worth $84,000 after buying an additional 4,146 shares during the period. 3.83% of the stock is currently owned by hedge funds and other 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.