Sherwin-Williams (NYSE:SHW) Shares Gap Up on Strong Earnings

Shares of The Sherwin-Williams Company (NYSE:SHW - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $332.20, but opened at $345.30. Sherwin-Williams shares last traded at $349.14, with a volume of 234,700 shares trading hands.

The specialty chemicals company reported $2.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.02. Sherwin-Williams had a return on equity of 74.50% and a net margin of 11.61%. The business had revenue of $5.31 billion during the quarter, compared to the consensus estimate of $5.42 billion. During the same period in the prior year, the business posted $2.17 EPS. The company's revenue for the quarter was down 1.1% on a year-over-year basis.

Sherwin-Williams Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 16th will be paid a dividend of $0.79 per share. The ex-dividend date of this dividend is Friday, May 16th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 0.91%. Sherwin-Williams's dividend payout ratio (DPR) is presently 29.95%.

Analyst Ratings Changes

SHW has been the topic of several recent analyst reports. Berenberg Bank upgraded shares of Sherwin-Williams from a "hold" rating to a "buy" rating and upped their target price for the stock from $321.00 to $420.00 in a research report on Friday, January 24th. UBS Group dropped their price objective on Sherwin-Williams from $430.00 to $400.00 and set a "buy" rating for the company in a research note on Monday, April 7th. Morgan Stanley decreased their target price on Sherwin-Williams from $405.00 to $385.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 22nd. Mizuho set a $395.00 price target on Sherwin-Williams in a research report on Tuesday, April 15th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Sherwin-Williams from $370.00 to $390.00 and gave the stock an "overweight" rating in a research report on Monday, February 3rd. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $392.00.

Insiders Place Their Bets

In other news, insider Colin M. Davie sold 2,799 shares of the business's stock in a transaction on Thursday, February 27th. The shares were sold at an average price of $360.30, for a total transaction of $1,008,479.70. Following the transaction, the insider now directly owns 5,365 shares of the company's stock, valued at approximately $1,933,009.50. The trade was a 34.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Sherwin-Williams

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Sherwin-Williams in the fourth quarter worth about $1,359,747,000. GAMMA Investing LLC increased its holdings in Sherwin-Williams by 41,717.1% during the 1st quarter. GAMMA Investing LLC now owns 1,636,304 shares of the specialty chemicals company's stock worth $571,381,000 after purchasing an additional 1,632,391 shares during the last quarter. Capital Research Global Investors raised its position in shares of Sherwin-Williams by 47.1% in the 4th quarter. Capital Research Global Investors now owns 2,998,647 shares of the specialty chemicals company's stock valued at $1,019,329,000 after purchasing an additional 960,724 shares in the last quarter. Barclays PLC boosted its stake in shares of Sherwin-Williams by 54.2% during the 4th quarter. Barclays PLC now owns 2,073,533 shares of the specialty chemicals company's stock valued at $704,855,000 after buying an additional 728,798 shares during the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in shares of Sherwin-Williams during the fourth quarter worth approximately $230,829,000. Institutional investors and hedge funds own 77.67% of the company's stock.

Sherwin-Williams Trading Up 4.7 %

The company has a quick ratio of 0.46, a current ratio of 0.79 and a debt-to-equity ratio of 2.02. The firm has a market cap of $87.51 billion, a P/E ratio of 32.98, a price-to-earnings-growth ratio of 2.98 and a beta of 1.26. The business's 50 day moving average is $341.71 and its 200-day moving average is $356.76.

About Sherwin-Williams

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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