Capital Research Global Investors Acquires 11,560 Shares of The Sherwin-Williams Company $SHW

Key Points

• Capital Research Global Investors added 11,560 shares in the quarter and now owns 3,432,977 shares of Sherwin‑Williams — a 1.38% stake valued at about $1.19 billion.
• Sell‑side analysts give SHW a consensus "Moderate Buy" rating with an average price target of $388.21 (11 Buys, 4 Holds, 1 Sell).
• Sherwin‑Williams beat quarterly estimates (EPS $2.23 vs. $2.16; revenue $5.60B vs. $5.57B) and raised its quarterly dividend to $0.80 per share (annualized $3.20, ~1.0% yield).

Capital Research Global Investors grew its holdings in shares of The Sherwin-Williams Company (NYSE:SHW - Free Report) by 0.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 3,432,977 shares of the specialty chemicals company's stock after acquiring an additional 11,560 shares during the quarter. Capital Research Global Investors owned 1.38% of Sherwin-Williams worth $1,188,698,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of the company. Norges Bank bought a new stake in Sherwin-Williams during the 2nd quarter worth approximately $1,296,565,000. Viking Global Investors LP increased its holdings in shares of Sherwin-Williams by 101.4% during the second quarter. Viking Global Investors LP now owns 1,957,750 shares of the specialty chemicals company's stock valued at $672,213,000 after acquiring an additional 985,520 shares in the last quarter. Amundi raised its holdings in Sherwin-Williams by 55.8% during the second quarter. Amundi now owns 1,665,333 shares of the specialty chemicals company's stock worth $587,047,000 after buying an additional 596,657 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in Sherwin-Williams by 22.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 3,039,306 shares of the specialty chemicals company's stock valued at $1,043,595,000 after purchasing an additional 553,275 shares during the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its position in Sherwin-Williams by 9.9% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 3,887,808 shares of the specialty chemicals company's stock valued at $1,334,918,000 after buying an additional 351,453 shares during the last quarter. Institutional investors and hedge funds own 77.67% of the company's stock.

Analysts Set New Price Targets

SHW has been the subject of several recent analyst reports. Vertical Research raised Sherwin-Williams from a "hold" rating to a "buy" rating and set a $371.00 target price for the company in a report on Wednesday, January 7th. Citigroup reiterated a "buy" rating on shares of Sherwin-Williams in a research note on Monday, January 19th. Deutsche Bank Aktiengesellschaft cut shares of Sherwin-Williams from a "buy" rating to a "hold" rating and set a $380.00 price target on the stock. in a research note on Thursday, January 22nd. Zacks Research downgraded Sherwin-Williams from a "hold" rating to a "strong sell" rating in a research note on Friday, January 30th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Sherwin-Williams in a research report on Monday, December 29th. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $388.21.

Insider Activity at Sherwin-Williams

In related news, SVP Bryan J. Young sold 2,513 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $364.47, for a total value of $915,913.11. Following the transaction, the senior vice president directly owned 10,045 shares of the company's stock, valued at approximately $3,661,101.15. This represents a 20.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Colin M. Davie sold 2,976 shares of Sherwin-Williams stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $359.50, for a total value of $1,069,872.00. Following the completion of the sale, the insider owned 5,365 shares of the company's stock, valued at $1,928,717.50. The trade was a 35.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.60% of the stock is currently owned by company insiders.

Sherwin-Williams Trading Up 1.1%

NYSE SHW opened at $333.36 on Tuesday. The firm has a market cap of $82.46 billion, a PE ratio of 32.46, a price-to-earnings-growth ratio of 2.86 and a beta of 1.25. The Sherwin-Williams Company has a 1-year low of $308.84 and a 1-year high of $379.65. The company has a current ratio of 0.87, a quick ratio of 0.53 and a debt-to-equity ratio of 2.03. The stock has a 50-day moving average of $352.33 and a 200-day moving average of $345.51.

Sherwin-Williams (NYSE:SHW - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The specialty chemicals company reported $2.23 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.07. The business had revenue of $5.60 billion during 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% on a year-over-year basis. During the same quarter last year, the business posted $2.09 EPS. As a group, sell-side analysts forecast that The Sherwin-Williams Company will post 12 EPS for the current year.

Sherwin-Williams Increases Dividend

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

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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