Sherwin-Williams' (SHW) "Outperform" Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “outperform” rating on Sherwin-Williams and set a $420 price target, implying approximately 29.25% upside from the reported share price.
• Analyst sentiment remains favorable, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $387.18.
• Sherwin-Williams exceeded quarterly expectations, reporting $3.70 in earnings per share and $6.79 billion in revenue, while revenue increased 7.5% year over year.

Sherwin-Williams (NYSE:SHW - Get Free Report)'s stock had its "outperform" rating restated by investment analysts at Royal Bank Of Canada in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $420.00 price target on the specialty chemicals company's stock. Royal Bank Of Canada's price target indicates a potential upside of 29.25% from the stock's current price.

SHW has been the topic of several other reports. Guggenheim assumed coverage on Sherwin-Williams in a research report on Monday, August 3rd. They issued a "buy" rating and a $400.00 target price on the stock. Wells Fargo & Company set a $360.00 price target on Sherwin-Williams and gave the company an "equal weight" rating in a research note on Wednesday, July 29th. BMO Capital Markets reissued an "outperform" rating and issued a $405.00 price objective (up from $400.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. Berenberg Bank set a $380.00 target price on Sherwin-Williams in a report on Monday, June 8th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $395.00 price target (up from $385.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $387.18.

Sherwin-Williams Stock Performance

SHW opened at $324.94 on Tuesday. The company has a market cap of $78.88 billion, a P/E ratio of 30.09, a price-to-earnings-growth ratio of 2.39 and a beta of 1.09. The company has a quick ratio of 0.46, a current ratio of 0.73 and a debt-to-equity ratio of 2.16. The firm's 50-day moving average price is $339.09 and its 200-day moving average price is $327.98. Sherwin-Williams has a 52-week low of $289.86 and a 52-week high of $377.77.

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

Insider Activity at Sherwin-Williams

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

Hedge Funds Weigh In On Sherwin-Williams

Several institutional investors and hedge funds have recently modified their holdings of SHW. Eastern Bank boosted its stake in Sherwin-Williams by 50.8% in the 2nd quarter. Eastern Bank now owns 89 shares of the specialty chemicals company's stock worth $31,000 after buying an additional 30 shares during the last quarter. Deseret Mutual Benefit Administrators grew its holdings in Sherwin-Williams by 6.2% in the fourth quarter. Deseret Mutual Benefit Administrators now owns 527 shares of the specialty chemicals company's stock valued at $171,000 after purchasing an additional 31 shares during the period. Heartland Bank & Trust Co boosted its holdings in shares of Sherwin-Williams by 2.8% in the 1st quarter. Heartland Bank & Trust Co now owns 1,174 shares of the specialty chemicals company's stock valued at $376,000 after purchasing an additional 32 shares during the last quarter. Physician Wealth Advisors Inc. grew its stake in shares of Sherwin-Williams by 8.5% during the 1st quarter. Physician Wealth Advisors Inc. now owns 432 shares of the specialty chemicals company's stock valued at $138,000 after buying an additional 34 shares during the period. Finally, Bartlett & CO. Wealth Management LLC increased its holdings in shares of Sherwin-Williams by 1.0% during the 2nd quarter. Bartlett & CO. Wealth Management LLC now owns 3,309 shares of the specialty chemicals company's stock worth $1,139,000 after buying an additional 34 shares during the last quarter. Hedge funds and other institutional investors own 77.67% of the company's stock.

About Sherwin-Williams

The Sherwin-Williams Company NYSE: SHW develops, manufactures, distributes and sells paints, coatings, floorcoverings and related products. Its offerings serve professional contractors, industrial and commercial customers, retailers and do-it-yourself consumers, with products used in residential, commercial, industrial and infrastructure applications.

The company operates through three primary business segments: Paint Stores Group, which supplies professional painting contractors through company-operated stores; Consumer Brands Group, which markets products through home-improvement retailers and other channels; and Performance Coatings Group, which provides specialized coatings for industrial, automotive, aerospace, packaging and other markets.

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