Sherwin-Williams (NYSE:SHW) Shares Gap Down After Earnings Miss

The Sherwin-Williams Company (NYSE:SHW - Get Free Report)'s stock price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $309.26, but opened at $297.83. Sherwin-Williams shares last traded at $297.31, with a volume of 1,034,924 shares.

The specialty chemicals company reported $2.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.22 by ($0.05). Sherwin-Williams had a return on equity of 74.72% and a net margin of 10.36%. The firm had revenue of $5.37 billion for the quarter, compared to the consensus estimate of $5.50 billion. During the same quarter last year, the business earned $2.04 earnings per share. The business's revenue for the quarter was down 1.4% compared to the same quarter last year.

Sherwin-Williams Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Investors of record on Friday, May 17th will be paid a dividend of $0.715 per share. This represents a $2.86 annualized dividend and a yield of 0.95%. The ex-dividend date of this dividend is Thursday, May 16th. Sherwin-Williams's dividend payout ratio (DPR) is presently 30.92%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SHW. Northcoast Research upgraded Sherwin-Williams from a "neutral" rating to a "buy" rating and set a $360.00 price objective on the stock in a research note on Tuesday, February 27th. Citigroup increased their target price on Sherwin-Williams from $360.00 to $390.00 and gave the stock a "buy" rating in a research report on Wednesday, April 10th. Royal Bank of Canada dropped their target price on Sherwin-Williams from $346.00 to $341.00 and set an "outperform" rating on the stock in a research report on Friday, January 26th. Mizuho dropped their target price on Sherwin-Williams from $352.00 to $340.00 and set a "buy" rating on the stock in a research report on Friday, January 26th. Finally, JPMorgan Chase & Co. increased their target price on Sherwin-Williams from $285.00 to $317.00 and gave the stock an "overweight" rating in a research report on Friday, January 26th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and thirteen have assigned a buy rating to the company's stock. According to MarketBeat, Sherwin-Williams has a consensus rating of "Moderate Buy" and an average target price of $325.94.

Insider Buying and Selling

In related news, insider Justin T. Binns sold 1,563 shares of Sherwin-Williams stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $338.87, for a total transaction of $529,653.81. Following the transaction, the insider now directly owns 14,564 shares of the company's stock, valued at $4,935,302.68. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, insider Justin T. Binns sold 1,563 shares of Sherwin-Williams stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $338.87, for a total value of $529,653.81. Following the transaction, the insider now owns 14,564 shares of the company's stock, valued at approximately $4,935,302.68. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Mary L. Garceau sold 23,518 shares of the business's stock in a transaction dated Monday, February 26th. The stock was sold at an average price of $322.66, for a total value of $7,588,317.88. Following the sale, the senior vice president now owns 28,475 shares in the company, valued at approximately $9,187,743.50. The disclosure for this sale can be found here. Insiders have sold a total of 32,050 shares of company stock valued at $10,340,237 over the last three months. Company insiders own 0.60% of the company's stock.

Institutional Trading of Sherwin-Williams

Several institutional investors and hedge funds have recently bought and sold shares of SHW. Global Retirement Partners LLC raised its holdings in Sherwin-Williams by 4.4% during the 3rd quarter. Global Retirement Partners LLC now owns 1,349 shares of the specialty chemicals company's stock worth $346,000 after buying an additional 57 shares during the period. SG Americas Securities LLC increased its holdings in shares of Sherwin-Williams by 10.9% in the 3rd quarter. SG Americas Securities LLC now owns 16,644 shares of the specialty chemicals company's stock valued at $4,245,000 after purchasing an additional 1,639 shares during the period. Naples Global Advisors LLC acquired a new position in shares of Sherwin-Williams in the 3rd quarter valued at about $310,000. Fifth Third Wealth Advisors LLC increased its holdings in shares of Sherwin-Williams by 45.3% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 1,299 shares of the specialty chemicals company's stock valued at $331,000 after purchasing an additional 405 shares during the period. Finally, Avior Wealth Management LLC increased its holdings in shares of Sherwin-Williams by 34.8% in the 3rd quarter. Avior Wealth Management LLC now owns 4,069 shares of the specialty chemicals company's stock valued at $1,038,000 after purchasing an additional 1,050 shares during the period. Institutional investors and hedge funds own 77.67% of the company's stock.

Sherwin-Williams Stock Down 2.2 %

The company has a market cap of $76.93 billion, a price-to-earnings ratio of 32.69, a P/E/G ratio of 2.42 and a beta of 1.15. The company has a current ratio of 0.83, a quick ratio of 0.48 and a debt-to-equity ratio of 2.25. The business has a fifty day moving average price of $328.40 and a two-hundred day moving average price of $298.73.

Sherwin-Williams Company Profile

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.