Sherwin-Williams (NYSE:SHW) Stock Picked Up by Analysts at Melius Research

Key Points

• Melius Research initiated coverage of Sherwin-Williams with a “hold” rating and a $367 price target, implying approximately 15% upside from the stock’s current price.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $384.83; recent ratings include “buy” and “overweight” recommendations from Guggenheim, Citigroup, and Morgan Stanley.
• Sherwin-Williams exceeded quarterly expectations, reporting $3.70 in EPS versus the $3.52 consensus and revenue of $6.79 billion versus $6.60 billion expected. However, insiders recently sold shares, while institutional investors own approximately 77.67% of the stock.

Equities researchers at Melius Research started coverage on shares of Sherwin-Williams (NYSE:SHW - Get Free Report) in a research report issued to clients and investors on Tuesday, Briefing.com reports. The brokerage set a "hold" rating and a $367.00 price target on the specialty chemicals company's stock. Melius Research's target price would suggest a potential upside of 15.01% from the stock's current price.

A number of other analysts have also issued reports on SHW. Morgan Stanley reissued an "overweight" rating and set a $395.00 target price (up from $385.00) on shares of Sherwin-Williams in a research note on Wednesday, July 29th. Guggenheim assumed coverage on shares of Sherwin-Williams in a research report on Monday, August 3rd. They issued a "buy" rating and a $400.00 price objective for the company. Berenberg Bank set a $380.00 target price on shares of Sherwin-Williams in a research note on Monday, June 8th. KeyCorp started coverage on shares of Sherwin-Williams in a research report on Thursday, September 10th. They set a "sector weight" rating on the stock. Finally, Citigroup reiterated a "buy" rating on shares of Sherwin-Williams in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $384.83.

Sherwin-Williams Trading Down 0.1%

SHW opened at $319.11 on Tuesday. The company has a debt-to-equity ratio of 2.16, a quick ratio of 0.46 and a current ratio of 0.73. The stock's 50 day moving average price is $339.17 and its 200-day moving average price is $327.78. Sherwin-Williams has a one year low of $289.86 and a one year high of $377.77. The stock has a market cap of $77.47 billion, a price-to-earnings ratio of 29.41, a P/E/G ratio of 2.38 and a beta of 1.08.

Sherwin-Williams (NYSE:SHW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The specialty chemicals company reported $3.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.52 by $0.18. The firm had revenue of $6.79 billion during the quarter, compared to analyst estimates of $6.60 billion. Sherwin-Williams had a return on equity of 67.97% and a net margin of 11.01%.Sherwin-Williams's quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the company earned $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. On average, equities analysts forecast that Sherwin-Williams will post 12.09 EPS for the current year.

Insider Buying and Selling

In other Sherwin-Williams news, insider Justin T. Binns sold 13,500 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the completion of the transaction, the insider owned 21,937 shares in the company, valued at $7,737,179.90. The trade was a 38.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Karl Jorgenrud sold 7,886 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the completion of the sale, the insider directly owned 11,944 shares in the company, valued at approximately $4,398,975.20. This represents a 39.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.23% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SHW. BlackRock Inc. acquired a new position in Sherwin-Williams in the second quarter valued at approximately $6,100,083,000. State Street Corp grew its position in shares of Sherwin-Williams by 2.4% in the 4th quarter. State Street Corp now owns 15,638,974 shares of the specialty chemicals company's stock valued at $5,067,497,000 after buying an additional 364,832 shares during the last quarter. Wellington Management Group LLP lifted its position in Sherwin-Williams by 133.7% in the second quarter. Wellington Management Group LLP now owns 2,784,679 shares of the specialty chemicals company's stock valued at $958,821,000 after acquiring an additional 1,593,009 shares during the last quarter. Amundi boosted its stake in Sherwin-Williams by 20.6% in the first quarter. Amundi now owns 2,200,895 shares of the specialty chemicals company's stock valued at $705,497,000 after acquiring an additional 376,505 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Sherwin-Williams during the second quarter worth about $547,097,000. Hedge funds and other institutional investors own 77.67% of the company's stock.

About Sherwin-Williams

The Sherwin-Williams Company NYSE: SHW manufactures, distributes and sells paints, coatings, floorcoverings and related products. Its offerings serve residential, commercial, industrial, automotive and specialty applications, including architectural paints, protective and marine coatings, industrial finishes, automotive refinishing products, wood stains and surface-preparation materials.

Founded in 1866 by Henry Sherwin and Edward Williams, the company is headquartered in Cleveland, Ohio.

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