Zacks Investment Research upgraded shares of Sherwin-Williams Co. (NYSE:SHW) from a hold rating to a buy rating in a report released on Monday morning. They currently have $317.00 target price on the stock.
According to Zacks, “Estimates for Sherwin-Williams have been stable of late. Sherwin-Williams is focusing on growth through acquisitions and cost control initiatives. The company should gain from its planned acquisition of Valspar. The buyout will allow Sherwin-Williams to strengthen its position as a leading paints and coatings provider globally, leveraging highly complementary offerings, strong brands and technologies. Valspar is a strategic fit and the merger will extend Sherwin-Williams’ brand portfolio and customer relationships in North America, and bolster its global finishes business. Further, the company's consumer as well as paint segments are recovering. The company also remains committed to increasing shareholder returns. “
SHW has been the subject of a number of other research reports. Sterne Agee CRT raised shares of Sherwin-Williams from a neutral rating to a buy rating in a report on Thursday, August 25th. Credit Agricole SA reissued a buy rating and issued a $350.00 target price on shares of Sherwin-Williams in a report on Wednesday, September 14th. Morgan Stanley reissued a buy rating on shares of Sherwin-Williams in a report on Thursday, June 16th. RBC Capital Markets reissued an outperform rating and issued a $335.00 target price on shares of Sherwin-Williams in a report on Saturday, August 13th. Finally, Robert W. Baird reissued an outperform rating and issued a $330.00 target price on shares of Sherwin-Williams in a report on Monday, July 25th. Four analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. Sherwin-Williams has a consensus rating of Buy and a consensus price target of $324.31.
Sherwin-Williams (NYSE:SHW) opened at 277.30 on Monday. The company’s 50-day moving average is $283.77 and its 200-day moving average is $290.95. Sherwin-Williams has a one year low of $227.30 and a one year high of $312.48. The firm has a market cap of $25.45 billion, a PE ratio of 23.38 and a beta of 0.87.
Sherwin-Williams (NYSE:SHW) last announced its quarterly earnings data on Thursday, July 21st. The company reported $4.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.16 by $0.10. The firm had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.28 billion. Sherwin-Williams had a return on equity of 110.16% and a net margin of 9.50%. The company’s quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.70 earnings per share. On average, analysts forecast that Sherwin-Williams will post $12.64 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 9th. Stockholders of record on Friday, August 19th were given a dividend of $0.84 per share. This represents a $3.36 annualized dividend and a dividend yield of 1.21%. The ex-dividend date of this dividend was Wednesday, August 17th. Sherwin-Williams’s dividend payout ratio (DPR) is 28.84%.
In other news, CEO John G. Morikis sold 30,353 shares of the firm’s stock in a transaction that occurred on Monday, August 1st. The shares were sold at an average price of $298.75, for a total transaction of $9,067,958.75. Following the completion of the sale, the chief executive officer now owns 119,804 shares of the company’s stock, valued at approximately $35,791,445. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Joel D. Baxter sold 3,853 shares of the firm’s stock in a transaction that occurred on Friday, August 5th. The stock was sold at an average price of $300.16, for a total transaction of $1,156,516.48. Following the sale, the insider now directly owns 8,347 shares of the company’s stock, valued at approximately $2,505,435.52. The disclosure for this sale can be found here. Insiders own 1.89% of the company’s stock.
Several hedge funds have recently made changes to their positions in SHW. WASHINGTON TRUST Co increased its stake in shares of Sherwin-Williams by 0.4% in the first quarter. WASHINGTON TRUST Co now owns 795 shares of the company’s stock valued at $226,000 after buying an additional 3 shares during the period. Berkshire Money Management Inc. increased its stake in shares of Sherwin-Williams by 0.3% in the second quarter. Berkshire Money Management Inc. now owns 1,838 shares of the company’s stock valued at $540,000 after buying an additional 6 shares during the period. Apex Capital Management increased its stake in shares of Sherwin-Williams by 0.4% in the first quarter. Apex Capital Management now owns 3,149 shares of the company’s stock valued at $896,000 after buying an additional 11 shares during the period. Cypress Capital Group increased its stake in shares of Sherwin-Williams by 0.4% in the first quarter. Cypress Capital Group now owns 3,207 shares of the company’s stock valued at $913,000 after buying an additional 13 shares during the period. Finally, Alpha Windward LLC increased its stake in shares of Sherwin-Williams by 1.7% in the second quarter. Alpha Windward LLC now owns 778 shares of the company’s stock valued at $228,000 after buying an additional 13 shares during the period. 74.62% of the stock is owned by institutional investors.
Sherwin-Williams Company Profile
The Sherwin-Williams Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products. The Company has four operating segments: Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group. The Paint Stores Group markets and sells architectural paint and coatings, protective and marine products, original equipment manufacturer (OEM) product finishes and related items.
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