The Sherwin-Williams Company (NYSE:SHW) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts give Sherwin‑Williams a consensus rating of "Moderate Buy" from 16 brokerages (11 buys, 4 holds, 1 sell) with an average 1‑year price target of $388.21.
• The company beat recent quarterly estimates with EPS of $2.23 versus $2.16 expected and revenue of $5.60 billion, up 5.6% year‑over‑year.
• Insiders have been selling shares (notably SVP Bryan J. Young and Colin M. Davie), leaving insiders with 0.60% ownership, and the company raised its quarterly dividend to $0.80 (annualized $3.20, ~1.0% yield; ex‑dividend March 2).

The Sherwin-Williams Company (NYSE:SHW - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the sixteen brokerages that are presently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, four have given a hold recommendation and eleven have given a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $388.2143.

SHW has been the subject of several analyst reports. Citigroup reissued a "buy" rating on shares of Sherwin-Williams in a research note on Monday, January 19th. Mizuho upped their target price on Sherwin-Williams from $400.00 to $410.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft downgraded Sherwin-Williams from a "buy" rating to a "hold" rating and set a $380.00 price target on the stock. in a report on Thursday, January 22nd. Zacks Research cut Sherwin-Williams from a "hold" rating to a "strong sell" rating in a report on Friday, January 30th. Finally, Vertical Research raised Sherwin-Williams from a "hold" rating to a "buy" rating and set a $371.00 price objective on the stock in a research report on Wednesday, January 7th.

Insider Buying and Selling at Sherwin-Williams

In other Sherwin-Williams news, SVP Bryan J. Young sold 2,513 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $364.47, for a total transaction of $915,913.11. Following the transaction, the senior vice president directly owned 10,045 shares in the company, valued at $3,661,101.15. This represents a 20.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Colin M. Davie sold 2,976 shares of the company's stock in a transaction that occurred 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 completion of the sale, the insider directly owned 5,365 shares of the company's stock, valued at $1,928,717.50. The trade was a 35.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SHW. MTM Investment Management LLC acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $26,000. Lloyd Advisory Services LLC. acquired a new stake in Sherwin-Williams in the 4th quarter worth approximately $27,000. Ares Financial Consulting LLC purchased a new stake in Sherwin-Williams during the 4th quarter worth approximately $27,000. Vermillion & White Wealth Management Group LLC increased its stake in Sherwin-Williams by 104.8% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 86 shares of the specialty chemicals company's stock valued at $30,000 after purchasing an additional 44 shares in the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new position in Sherwin-Williams during the 4th quarter valued at approximately $30,000. 77.67% of the stock is currently owned by hedge funds and other institutional investors.

Sherwin-Williams Stock Up 1.1%

NYSE SHW opened at $333.36 on Tuesday. The stock has a 50 day moving average price of $352.33 and a 200-day moving average price of $345.51. Sherwin-Williams has a one year low of $308.84 and a one year high of $379.65. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.53 and a current ratio of 0.87. The company has a market capitalization of $82.46 billion, a P/E ratio of 32.46, a P/E/G ratio of 2.86 and a beta of 1.25.

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

Sherwin-Williams Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, March 2nd will be issued a $0.80 dividend. The ex-dividend date is Monday, March 2nd. This is a positive change from Sherwin-Williams's previous quarterly dividend of $0.79. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.0%. Sherwin-Williams's dividend payout ratio (DPR) is presently 31.16%.

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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