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

Key Points

• Moderate Buy consensus from 15 analysts—11 "buy" and 4 "hold"—with an average 12‑month price target of $383.23.
• Sherwin‑Williams beat Q4 estimates (EPS $2.23 vs $2.16; revenue $5.60B vs $5.57B), with revenue up 5.6% year‑over‑year and a market cap of about $78.6B (P/E ~30.9).
• The company raised its quarterly dividend to $0.80 (annualized $3.20, ~1.0% yield), while insiders have recently sold shares and institutional investors own roughly 77.7% of the stock.

Shares of The Sherwin-Williams Company (NYSE:SHW - Get Free Report) have received an average rating of "Moderate Buy" from the fifteen ratings firms that are currently covering the stock, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $383.2308.

SHW has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft cut 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. UBS Group cut their price objective on shares of Sherwin-Williams from $420.00 to $380.00 and set a "buy" rating for the company in a report on Thursday. Weiss Ratings reiterated a "hold (c+)" rating on shares of Sherwin-Williams in a research report on Friday, March 27th. 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 research report on Thursday, March 19th. Finally, Vertical Research upgraded shares of Sherwin-Williams from a "hold" rating to a "buy" rating and set a $371.00 price target on the stock in a research note on Wednesday, January 7th.

Sherwin-Williams Trading Down 0.1%

Shares of Sherwin-Williams stock opened at $317.69 on Friday. Sherwin-Williams has a fifty-two week low of $301.58 and a fifty-two week 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 $78.58 billion, a P/E ratio of 30.93, a P/E/G ratio of 2.75 and a beta of 1.27. The company has a fifty day moving average of $342.34 and a 200 day moving average of $339.51.

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

Sherwin-Williams Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Monday, March 2nd were given a $0.80 dividend. This is an increase 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%. The ex-dividend date was Monday, March 2nd. Sherwin-Williams's dividend payout ratio (DPR) is presently 31.16%.

Insider Activity at Sherwin-Williams

In other news, insider Colin M. Davie sold 2,976 shares of the 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 transaction, the insider directly owned 5,365 shares in the company, valued at approximately $1,928,717.50. This represents a 35.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 directly 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. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.23% of the company's stock.

Hedge Funds Weigh In On Sherwin-Williams

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

About Sherwin-Williams

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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