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

Key Points

• Analysts rate Sherwin-Williams a “Moderate Buy”: Nine of 16 analysts recommend buying the stock, while seven rate it a hold. The average 12-month price target is $385.44, above the reported price of $363.08.
• Quarterly results exceeded expectations: Sherwin-Williams reported adjusted earnings of $3.70 per share versus the $3.52 consensus estimate, while revenue rose 7.5% year over year to $6.79 billion.
• The company maintained its dividend: Sherwin-Williams declared a quarterly dividend of $0.80 per share, equivalent to $3.20 annually and a 0.9% yield; institutional investors own 77.67% of its stock.

The Sherwin-Williams Company (NYSE:SHW - Get Free Report) has been given a consensus rating of "Moderate Buy" by the sixteen ratings firms that are currently covering the stock, Marketbeat reports. Seven equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $385.4375.

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley reissued an "overweight" rating and issued a $395.00 price target (up from $385.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. JPMorgan Chase & Co. boosted their price target on shares of Sherwin-Williams from $365.00 to $380.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. Guggenheim began coverage on shares of Sherwin-Williams in a report on Monday. They issued a "buy" rating and a $400.00 price target on the stock. BMO Capital Markets restated an "outperform" rating and set a $405.00 price objective (up from $400.00) on shares of Sherwin-Williams in a research report on Wednesday, July 29th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $375.00 price objective on shares of Sherwin-Williams in a report on Tuesday, July 28th.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors have recently added to or reduced their stakes in the company. Wilkerson Advisory Group LLC lifted its position in shares of Sherwin-Williams by 172.4% in the 1st quarter. Wilkerson Advisory Group LLC now owns 79 shares of the specialty chemicals company's stock worth $25,000 after purchasing an additional 50 shares during the period. Lloyd Advisory Services LLC. purchased a new position in shares of Sherwin-Williams during the fourth quarter valued at about $27,000. Ares Financial Consulting LLC bought a new position in Sherwin-Williams in the fourth quarter worth about $27,000. Whipplewood Advisors LLC purchased a new stake in Sherwin-Williams in the first quarter worth about $28,000. Finally, Eastern Bank lifted its holdings in Sherwin-Williams by 50.8% in the second quarter. Eastern Bank now owns 89 shares of the specialty chemicals company's stock worth $31,000 after buying an additional 30 shares during the period. Hedge funds and other institutional investors own 77.67% of the company's stock.

Sherwin-Williams Stock Performance

NYSE SHW opened at $363.08 on Friday. The firm has a market cap of $88.14 billion, a P/E ratio of 33.46, a price-to-earnings-growth ratio of 2.75 and a beta of 1.10. The company has a quick ratio of 0.46, a current ratio of 0.73 and a debt-to-equity ratio of 2.16. The company's 50 day moving average is $328.64 and its 200-day moving average is $332.31. Sherwin-Williams has a 12-month low of $289.86 and a 12-month high of $379.65.

Sherwin-Williams (NYSE:SHW - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The specialty chemicals company reported $3.70 EPS for the quarter, topping the consensus estimate of $3.52 by $0.18. Sherwin-Williams had a net margin of 11.01% and a return on equity of 67.97%. The company had revenue of $6.79 billion during the quarter, compared to the consensus estimate of $6.60 billion. During the same period last year, the firm earned $3.38 EPS. Sherwin-Williams's revenue for the quarter was up 7.5% on a year-over-year basis. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS. Sell-side analysts predict that Sherwin-Williams will post 12.08 earnings per share for the current year.

Sherwin-Williams Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be issued a $0.80 dividend. The ex-dividend date is Friday, August 21st. This represents a $3.20 annualized dividend and a dividend yield of 0.9%. Sherwin-Williams's payout ratio is currently 29.49%.

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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