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

Key Points

• Analysts have given Sherwin-Williams a consensus recommendation of "Moderate Buy", with eleven out of seventeen analysts assigning a buy rating.
• The company's average twelve-month price objective among brokerages is $387.60, reflecting strong market confidence in its stock performance.
• Sherwin-Williams reported $3.38 earnings per share for its latest quarter, missing estimates, while the company has set guidance for FY 2025 at 11.200-11.500 EPS.

Shares of The Sherwin-Williams Company (NYSE:SHW - Get Free Report) have been given an average rating of "Moderate Buy" by the seventeen analysts that are covering the stock, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $387.60.

Several equities analysts recently issued reports on SHW shares. Bank of America raised shares of Sherwin-Williams from an "underperform" rating to a "neutral" rating and lifted their price objective for the company from $296.00 to $375.00 in a report on Thursday, August 14th. JPMorgan Chase & Co. cut their price objective on shares of Sherwin-Williams from $390.00 to $378.00 and set an "overweight" rating on the stock in a report on Wednesday, July 23rd. Evercore ISI lifted their price objective on shares of Sherwin-Williams from $380.00 to $400.00 and gave the company an "outperform" rating in a report on Tuesday, August 26th. Citigroup restated a "neutral" rating and issued a $380.00 target price (up from $375.00) on shares of Sherwin-Williams in a research note on Monday. Finally, BMO Capital Markets lowered their target price on shares of Sherwin-Williams from $405.00 to $391.00 and set an "outperform" rating for the company in a research note on Wednesday, July 23rd.

Insider Activity at Sherwin-Williams

In other Sherwin-Williams news, insider Justin T. Binns sold 609 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $368.82, for a total value of $224,611.38. Following the completion of the sale, the insider directly owned 17,922 shares in the company, valued at $6,609,992.04. This trade represents a 3.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO James P. Lang sold 860 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $350.35, for a total transaction of $301,301.00. Following the completion of the sale, the chief accounting officer owned 377 shares of the company's stock, valued at approximately $132,081.95. This trade represents a 69.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sherwin-Williams

Several institutional investors and hedge funds have recently made changes to their positions in SHW. Norges Bank acquired a new stake in shares of Sherwin-Williams during the second quarter worth $1,296,565,000. Price T Rowe Associates Inc. MD lifted its stake in shares of Sherwin-Williams by 21.0% during the first quarter. Price T Rowe Associates Inc. MD now owns 8,657,536 shares of the specialty chemicals company's stock worth $3,023,126,000 after buying an additional 1,505,341 shares during the period. Viking Global Investors LP lifted its stake in shares of Sherwin-Williams by 101.4% during the second quarter. Viking Global Investors LP now owns 1,957,750 shares of the specialty chemicals company's stock worth $672,213,000 after buying an additional 985,520 shares during the period. Nuveen LLC acquired a new stake in shares of Sherwin-Williams during the first quarter worth $265,510,000. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Sherwin-Williams by 601.0% during the second quarter. Assenagon Asset Management S.A. now owns 839,756 shares of the specialty chemicals company's stock worth $288,339,000 after buying an additional 719,965 shares during the period. 77.67% of the stock is currently owned by institutional investors and hedge funds.

Sherwin-Williams Stock Performance

Shares of SHW stock opened at $332.51 on Friday. The firm has a market cap of $82.90 billion, a price-to-earnings ratio of 32.99, a PEG ratio of 2.77 and a beta of 1.20. The company's 50 day moving average is $355.02 and its 200 day moving average is $348.40. The company has a quick ratio of 0.48, a current ratio of 0.78 and a debt-to-equity ratio of 1.78. Sherwin-Williams has a 52-week low of $308.84 and a 52-week high of $400.42.

Sherwin-Williams (NYSE:SHW - Get Free Report) last issued its quarterly earnings data on Tuesday, July 22nd. The specialty chemicals company reported $3.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.76 by ($0.38). The business had revenue of $6.31 billion for the quarter, compared to analysts' expectations of $6.31 billion. Sherwin-Williams had a net margin of 11.03% and a return on equity of 66.91%. The business's quarterly revenue was up .6% compared to the same quarter last year. During the same period in the previous year, the business earned $3.70 earnings per share. Sherwin-Williams has set its FY 2025 guidance at 11.200-11.500 EPS. On average, sell-side analysts anticipate that Sherwin-Williams will post 12 EPS for the current fiscal year.

Sherwin-Williams Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 15th were paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 1.0%. The ex-dividend date was Friday, August 15th. Sherwin-Williams's dividend payout ratio (DPR) is 31.35%.

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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