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

The Sherwin-Williams Company (NYSE:SHW - Get Free Report)'s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $341.30, but opened at $331.43. Sherwin-Williams shares last traded at $332.55, with a volume of 703,308 shares changing hands.

The specialty chemicals company reported $3.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.75 by ($0.37). Sherwin-Williams had a net margin of 11.63% and a return on equity of 71.86%. The business had revenue of $6.31 billion for the quarter, compared to analyst estimates of $6.31 billion. During the same quarter in the prior year, the business earned $3.70 earnings per share. The firm's quarterly revenue was up .6% compared to the same quarter last year.

Sherwin-Williams Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Friday, August 15th will be given a $0.79 dividend. This represents a $3.16 annualized dividend and a dividend yield of 0.95%. The ex-dividend date is Friday, August 15th. Sherwin-Williams's dividend payout ratio (DPR) is currently 29.87%.

Analyst Upgrades and Downgrades

SHW has been the subject of a number of research reports. Citigroup cut shares of Sherwin-Williams from a "buy" rating to a "neutral" rating and cut their price objective for the company from $405.00 to $385.00 in a research note on Friday, June 13th. Wells Fargo & Company upgraded shares of Sherwin-Williams from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $350.00 to $420.00 in a report on Wednesday, April 30th. Barclays dropped their price target on shares of Sherwin-Williams from $385.00 to $355.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 1st. Morgan Stanley decreased their target price on shares of Sherwin-Williams from $405.00 to $385.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 22nd. Finally, Bank of America raised their target price on shares of Sherwin-Williams from $289.00 to $296.00 and gave the stock an "underperform" rating in a research note on Monday, June 23rd. One analyst has rated the stock with a sell rating, six have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $391.94.

Institutional Investors Weigh In On Sherwin-Williams

Hedge funds and other institutional investors have recently made changes to their positions in the company. Penobscot Investment Management Company Inc. lifted its position in shares of Sherwin-Williams by 1.2% during the 2nd quarter. Penobscot Investment Management Company Inc. now owns 46,644 shares of the specialty chemicals company's stock valued at $16,016,000 after buying an additional 548 shares in the last quarter. Sava Infond d.o.o. purchased a new position in shares of Sherwin-Williams during the 2nd quarter valued at approximately $69,000. Ameriflex Group Inc. lifted its holdings in Sherwin-Williams by 28.3% in the 2nd quarter. Ameriflex Group Inc. now owns 222 shares of the specialty chemicals company's stock valued at $76,000 after purchasing an additional 49 shares in the last quarter. QRG Capital Management Inc. lifted its holdings in Sherwin-Williams by 18.7% in the 2nd quarter. QRG Capital Management Inc. now owns 55,449 shares of the specialty chemicals company's stock valued at $19,039,000 after purchasing an additional 8,740 shares in the last quarter. Finally, Vaughan Nelson Investment Management L.P. lifted its holdings in Sherwin-Williams by 83.1% in the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 470,948 shares of the specialty chemicals company's stock valued at $161,705,000 after purchasing an additional 213,690 shares in the last quarter. Institutional investors and hedge funds own 77.67% of the company's stock.

Sherwin-Williams Stock Performance

The company has a market cap of $83.59 billion, a PE ratio of 31.45, a PEG ratio of 3.06 and a beta of 1.18. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.45 and a current ratio of 0.77. The firm's 50 day moving average is $349.79 and its 200-day moving average is $348.09.

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.

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