Sherwin-Williams (NYSE:SHW) Downgraded to "Equal Weight" Rating by Wells Fargo & Company

Key Points

• Wells Fargo downgraded Sherwin‑Williams from "overweight" to "equal weight" and cut its price objective to $365 (from $410), implying about an 8.65% upside from the current price.
• Analyst views are mixed but lean positive overall—ten Buys and five Holds give a MarketBeat average rating of "Moderate Buy" with an average target of $379.77, while several firms (UBS, RBC) have trimmed targets and others have recently adjusted ratings.
• Sherwin‑Williams reported a quarterly beat (EPS $2.23 vs. $2.16) and 5.6% revenue growth to $5.60B; the company has a market cap of $83.1B and a P/E of 32.71, though insiders have reduced holdings and insider ownership is just 0.23%.

Sherwin-Williams (NYSE:SHW - Get Free Report) was downgraded by investment analysts at Wells Fargo & Company from an "overweight" rating to an "equal weight" rating in a note issued to investors on Friday, Marketbeat.com reports. They presently have a $365.00 price objective on the specialty chemicals company's stock, down from their prior price objective of $410.00. Wells Fargo & Company's price objective suggests a potential upside of 8.65% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Zacks Research upgraded Sherwin-Williams from a "strong sell" rating to a "hold" rating in a research report on Tuesday, March 31st. Royal Bank Of Canada dropped their target price on shares of Sherwin-Williams from $390.00 to $376.00 and set an "outperform" rating for the company in a report on Thursday, March 19th. Weiss Ratings restated a "hold (c+)" rating on shares of Sherwin-Williams in a research note on Friday, March 27th. Vertical Research raised shares of Sherwin-Williams from a "hold" rating to a "buy" rating and set a $371.00 price target on the stock in a report on Wednesday, January 7th. Finally, UBS Group dropped their price objective on shares of Sherwin-Williams from $420.00 to $380.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $379.77.

Sherwin-Williams Stock Up 0.1%

Shares of SHW opened at $335.95 on Friday. The firm has a 50 day simple moving average of $340.38 and a two-hundred day simple moving average of $338.83. The company has a debt-to-equity ratio of 2.03, a current ratio of 0.87 and a quick ratio of 0.53. Sherwin-Williams has a one year low of $301.58 and a one year high of $379.65. The company has a market cap of $83.10 billion, a P/E ratio of 32.71, a P/E/G ratio of 2.91 and a beta of 1.27.

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

Insider Activity at Sherwin-Williams

In other news, SVP Bryan J. Young sold 2,513 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $364.47, for a total transaction of $915,913.11. Following the completion of the transaction, the senior vice president owned 10,045 shares of the company's stock, valued at approximately $3,661,101.15. This trade represents a 20.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Colin M. Davie sold 2,976 shares of Sherwin-Williams stock in a transaction on 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 transaction, the insider owned 5,365 shares in the company, valued at approximately $1,928,717.50. This trade represents a 35.68% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.23% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Ares Financial Consulting LLC bought a new position in shares of Sherwin-Williams during the fourth quarter worth about $27,000. Lloyd Advisory Services LLC. acquired a new stake in Sherwin-Williams during the 4th quarter valued at approximately $27,000. Kemnay Advisory Services Inc. acquired a new stake in Sherwin-Williams during the 4th quarter valued at approximately $30,000. Lodestone Wealth Management LLC bought a new position in Sherwin-Williams during the 4th quarter worth approximately $31,000. Finally, Rossby Financial LCC raised its holdings in Sherwin-Williams by 96.0% during the 3rd quarter. Rossby Financial LCC now owns 98 shares of the specialty chemicals company's stock worth $33,000 after purchasing an additional 48 shares during the last quarter. 77.67% of the stock is owned by institutional investors.

Sherwin-Williams Company Profile

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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