Candelo Capital Management LP Decreases Holdings in The Sherwin-Williams Company $SHW

Key Points

• Candelo Capital cut its stake in The Sherwin-Williams Company by 36.7%, selling 5,813 shares and leaving 10,022 shares worth $3.47 million (3.0% of Candelo's portfolio).
• Sherwin-Williams recently beat expectations with $2.23 EPS on $5.60 billion revenue and raised its quarterly dividend to $0.80 ($3.20 annual, ~1.0% yield).
• The stock draws mostly positive analyst sentiment (11 Buys, 4 Holds, 1 Sell; average target ~$388.21), while institutional ownership is high (~77.7%) and insiders have made recent sales.

Candelo Capital Management LP decreased its position in The Sherwin-Williams Company (NYSE:SHW - Free Report) by 36.7% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 10,022 shares of the specialty chemicals company's stock after selling 5,813 shares during the quarter. Sherwin-Williams accounts for 3.0% of Candelo Capital Management LP's portfolio, making the stock its 21st largest position. Candelo Capital Management LP's holdings in Sherwin-Williams were worth $3,470,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the business. Candlestick Capital Management LP bought a new position in Sherwin-Williams during the third quarter valued at approximately $38,190,000. Cartenna Capital LP bought a new stake in shares of Sherwin-Williams in the 3rd quarter worth approximately $64,058,000. Clark Capital Management Group Inc. boosted its stake in shares of Sherwin-Williams by 4.0% in the 3rd quarter. Clark Capital Management Group Inc. now owns 1,571 shares of the specialty chemicals company's stock valued at $544,000 after purchasing an additional 61 shares in the last quarter. Banco Bilbao Vizcaya Argentaria S.A. grew its holdings in shares of Sherwin-Williams by 35.7% during the 3rd quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 7,143 shares of the specialty chemicals company's stock valued at $2,473,000 after purchasing an additional 1,878 shares during the last quarter. Finally, California Public Employees Retirement System grew its holdings in shares of Sherwin-Williams by 2.4% during the 3rd quarter. California Public Employees Retirement System now owns 436,856 shares of the specialty chemicals company's stock valued at $151,266,000 after purchasing an additional 10,144 shares during the last quarter. 77.67% of the stock is currently owned by institutional investors.

Sherwin-Williams Trading Up 0.6%

NYSE SHW opened at $319.62 on Friday. The stock has a market cap of $79.06 billion, a P/E ratio of 31.12, a price-to-earnings-growth ratio of 2.77 and a beta of 1.25. The Sherwin-Williams Company has a fifty-two week low of $308.84 and a fifty-two week high of $379.65. The stock has a 50 day simple moving average of $352.08 and a two-hundred day simple moving average of $344.38. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.53 and a current ratio of 0.87.

Sherwin-Williams (NYSE:SHW - Get Free Report) last posted its earnings results on Thursday, January 29th. The specialty chemicals company reported $2.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.07. The firm had revenue of $5.60 billion for the quarter, compared to analysts' expectations of $5.57 billion. Sherwin-Williams had a return on equity of 65.26% and a net margin of 10.90%.The business's revenue was up 5.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.09 earnings per share. On average, analysts forecast that The Sherwin-Williams Company will post 12 earnings per share for the current year.

Sherwin-Williams Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Shareholders of record on Monday, March 2nd were given a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Monday, March 2nd. This is an increase from Sherwin-Williams's previous quarterly dividend of $0.79. Sherwin-Williams's payout ratio is presently 31.16%.

Insider Buying and Selling at Sherwin-Williams

In other Sherwin-Williams news, SVP Bryan J. Young sold 2,513 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $364.47, for a total value of $915,913.11. Following the completion of the transaction, the senior vice president directly owned 10,045 shares in the company, valued at approximately $3,661,101.15. This represents a 20.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Colin M. Davie sold 2,976 shares of the firm's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $359.50, for a total transaction of $1,069,872.00. Following the completion of the sale, the insider directly owned 5,365 shares of the company's stock, valued at approximately $1,928,717.50. This represents a 35.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.60% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

SHW has been the subject of several recent research reports. Royal Bank Of Canada set a $390.00 price target on shares of Sherwin-Williams and gave the stock an "outperform" rating in a research note on Friday, January 30th. Mizuho raised their price objective on Sherwin-Williams from $400.00 to $410.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. Citigroup reiterated a "buy" rating on shares of Sherwin-Williams in a report on Monday, January 19th. UBS Group set a $420.00 target price on Sherwin-Williams in a research note on Friday, January 30th. Finally, Deutsche Bank Aktiengesellschaft lowered Sherwin-Williams from a "buy" rating to a "hold" rating and set a $380.00 price target on the stock. in a research report on Thursday, January 22nd. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $388.21.

About Sherwin-Williams

Sherwin-Williams NYSE: SHW is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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