Addenda Capital Inc. Makes New Investment in The Sherwin-Williams Company $SHW

Key Points

• Addenda Capital Inc. recently acquired a new stake in The Sherwin-Williams Company, purchasing 6,931 shares valued at around $2.38 million.
• Sherwin-Williams reported a miss in earnings for the last quarter, with $3.38 EPS compared to analysts' expectations of $3.76, despite revenue meeting forecasts.
• The company has announced a quarterly dividend of $0.79, with a current annualized yield of 0.9% and a payout ratio of 31.35%.

Addenda Capital Inc. bought a new stake in shares of The Sherwin-Williams Company (NYSE:SHW - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 6,931 shares of the specialty chemicals company's stock, valued at approximately $2,380,000.

Several other large investors have also recently made changes to their positions in SHW. Perkins Coie Trust Co bought a new stake in shares of Sherwin-Williams during the 1st quarter valued at about $27,000. Synergy Investment Management LLC lifted its stake in shares of Sherwin-Williams by 583.3% during the 1st quarter. Synergy Investment Management LLC now owns 82 shares of the specialty chemicals company's stock worth $29,000 after acquiring an additional 70 shares during the last quarter. Barnes Dennig Private Wealth Management LLC purchased a new position in Sherwin-Williams during the 1st quarter worth $30,000. Saudi Central Bank acquired a new position in Sherwin-Williams in the 1st quarter worth about $33,000. Finally, Flaharty Asset Management LLC purchased a new position in Sherwin-Williams in the first quarter worth approximately $33,000. 77.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on SHW shares. Mizuho cut their price target on Sherwin-Williams from $400.00 to $385.00 and set an "outperform" rating for the company in a report on Wednesday, July 23rd. Bank of America raised shares of Sherwin-Williams from an "underperform" rating to a "neutral" rating and increased their price target for the company from $296.00 to $375.00 in a research note on Thursday, August 14th. BMO Capital Markets decreased their target price on shares of Sherwin-Williams from $405.00 to $391.00 and set an "outperform" rating for the company in a research report on Wednesday, July 23rd. Wells Fargo & Company dropped their target price on shares of Sherwin-Williams from $420.00 to $400.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Finally, Loop Capital reduced their price objective on shares of Sherwin-Williams from $395.00 to $380.00 and set a "buy" rating on the stock in a research note on Wednesday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $387.27.

Sherwin-Williams Stock Performance

Shares of SHW stock opened at $342.05 on Friday. The company has a current ratio of 0.78, a quick ratio of 0.48 and a debt-to-equity ratio of 1.78. The stock has a market cap of $85.28 billion, a PE ratio of 33.93, a price-to-earnings-growth ratio of 2.84 and a beta of 1.18. The company's fifty day moving average price is $354.82 and its 200-day moving average price is $348.42. The Sherwin-Williams Company has a 12 month low of $308.84 and a 12 month high of $400.42.

Sherwin-Williams (NYSE:SHW - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The specialty chemicals company reported $3.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.76 by ($0.38). Sherwin-Williams had a net margin of 11.03% and a return on equity of 66.91%. The company had revenue of $6.31 billion for the quarter, compared to analysts' expectations of $6.31 billion. During the same period last year, the business earned $3.70 earnings per share. The company's quarterly revenue was up .6% compared to the same quarter last year. Sherwin-Williams has set its FY 2025 guidance at 11.200-11.500 EPS. On average, equities analysts expect that The Sherwin-Williams Company will post 12 EPS for the current fiscal year.

Sherwin-Williams Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 15th were issued a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 0.9%. The ex-dividend date was Friday, August 15th. Sherwin-Williams's dividend payout ratio is presently 31.35%.

Insiders Place Their Bets

In other Sherwin-Williams news, insider Justin T. Binns sold 609 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $368.82, for a total value of $224,611.38. Following the sale, the insider owned 17,922 shares of the company's stock, valued at $6,609,992.04. This trade represents a 3.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO James P. Lang sold 860 shares of Sherwin-Williams stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $350.35, for a total value of $301,301.00. Following the completion of the transaction, the chief accounting officer owned 377 shares in the company, valued at $132,081.95. This trade represents a 69.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.60% of the company's stock.

About Sherwin-Williams

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group.

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