UBS Group Issues Pessimistic Forecast for Sherwin-Williams (NYSE:SHW) Stock Price

Key Points

• UBS Group cut its price target for Sherwin‑Williams from $420 to $380 while maintaining a "buy" rating, implying roughly a 19.4% upside from the current share price.
• SHW shares fell about 2.3% to $318.14 on the news; analysts' consensus is a "Moderate Buy" with an average price target of $383.23 (11 Buys, 4 Holds).
• Sherwin‑Williams posted an EPS beat ( $2.23 vs. $2.16 ) and 5.6% revenue growth for the quarter, but carries high leverage (debt/equity 2.03) and recent insider selling was disclosed.

Sherwin-Williams (NYSE:SHW - Get Free Report) had its price target decreased by stock analysts at UBS Group from $420.00 to $380.00 in a report released on Thursday,Benzinga reports. The firm presently has a "buy" rating on the specialty chemicals company's stock. UBS Group's target price indicates a potential upside of 19.44% from the company's current price.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Sherwin-Williams in a research note on Friday, March 27th. Royal Bank Of Canada lowered their target price on shares of Sherwin-Williams from $390.00 to $376.00 and set an "outperform" rating on the stock in a report on Thursday, March 19th. Vertical Research upgraded shares of Sherwin-Williams from a "hold" rating to a "buy" rating and set a $371.00 price target for the company in a research note on Wednesday, January 7th. Citigroup lowered their price objective on shares of Sherwin-Williams from $410.00 to $385.00 and set a "buy" rating on the stock in a research note on Wednesday. Finally, Mizuho cut their target price on shares of Sherwin-Williams from $410.00 to $371.00 and set an "outperform" rating for the company in a research note on Monday, March 23rd. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Sherwin-Williams presently has a consensus rating of "Moderate Buy" and an average price target of $383.23.

Sherwin-Williams Stock Down 2.3%

SHW stock traded down $7.56 during mid-day trading on Thursday, hitting $318.14. 953,957 shares of the company were exchanged, compared to its average volume of 1,812,815. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.53 and a current ratio of 0.87. Sherwin-Williams has a 1-year low of $301.58 and a 1-year high of $379.65. The firm's 50 day simple moving average is $343.60 and its 200 day simple moving average is $339.94. The firm has a market cap of $78.70 billion, a P/E ratio of 30.99, a P/E/G ratio of 2.78 and a beta of 1.27.

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

Insider Activity

In related news, SVP Bryan J. Young sold 2,513 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $364.47, for a total value of $915,913.11. Following the transaction, the senior vice president owned 10,045 shares in the company, valued at approximately $3,661,101.15. This represents a 20.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Colin M. Davie sold 2,976 shares of the stock in a transaction dated Monday, February 2nd. The shares were 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 ownership of the stock. The SEC filing for this sale provides additional information. 0.23% of the stock is owned by corporate insiders.

Institutional Trading of Sherwin-Williams

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Planning LLC acquired a new position in Sherwin-Williams in the 4th quarter valued at $2,435,000. Rockefeller Capital Management L.P. increased its position in shares of Sherwin-Williams by 7.2% in the fourth quarter. Rockefeller Capital Management L.P. now owns 106,890 shares of the specialty chemicals company's stock worth $34,636,000 after purchasing an additional 7,149 shares during the period. World Investment Advisors raised its stake in Sherwin-Williams by 127.4% in the fourth quarter. World Investment Advisors now owns 5,545 shares of the specialty chemicals company's stock valued at $1,797,000 after purchasing an additional 3,107 shares in the last quarter. Demming Financial Services Corp ADV bought a new stake in Sherwin-Williams during the fourth quarter worth about $1,063,000. Finally, Larry Mathis Financial Planning LLC bought a new stake in Sherwin-Williams during the fourth quarter worth about $221,000. 77.67% of the stock is owned by institutional investors and hedge funds.

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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