Sherwin-Williams (NYSE:SHW) Stock Price Breaks Below 200-Day Moving Average on Disappointing Earnings

The Sherwin-Williams Company (NYSE:SHW)’s stock price passed below its 200-day moving average during trading on Tuesday following a dissappointing earnings announcement. The stock has a 200-day moving average of $333.48 and traded as low as $313.25. Sherwin-Williams shares last traded at $326.0110, with a volume of 3,133,342 shares changing hands.

The specialty chemicals company reported $3.63 EPS for the quarter, missing the consensus estimate of $3.69 by ($0.06). The firm had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.78 billion. During the same period in the previous year, the business earned $3.59 EPS. The business’s revenue for the quarter was up 7.9% on a year-over-year basis.

Sherwin-Williams Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, November 13th.

Sherwin-Williams News Summary

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Third-quarter revenue increased 7.9% year over year to $6.86 billion, exceeding the roughly $6.78 billion consensus estimate. Sherwin-Williams third-quarter financial results
• Positive Sentiment: Management highlighted resilient demand and continued growth across the business during the earnings call, supporting the longer-term investment case. Sherwin-Williams earnings call highlights
• Positive Sentiment: Evercore ISI upgraded Sherwin-Williams to Outperform ahead of the report, indicating some analysts see valuation or longer-term earnings potential as attractive. Evercore ISI upgrade

Analysts Set New Price Targets

SHW has been the subject of a number of recent analyst reports. Citigroup reduced their price objective on shares of Sherwin-Williams from $415.00 to $400.00 and set a “buy” rating for the company in a research report on Wednesday, September 30th. Berenberg Bank boosted their target price on Sherwin-Williams from $380.00 to $400.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Argus increased their target price on Sherwin-Williams from $355.00 to $380.00 in a research note on Thursday, August 27th. JPMorgan Chase & Co. increased their target price on Sherwin-Williams from $365.00 to $380.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $353.00 price target on shares of Sherwin-Williams in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat, Sherwin-Williams has an average rating of “Moderate Buy” and an average price target of $381.17.

Insider Transactions at Sherwin-Williams

In related news, insider Justin Binns sold 13,500 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the sale, the insider owned 21,937 shares of the company’s stock, valued at approximately $7,737,179.90. The trade was a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Karl J. Jorgenrud sold 7,886 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the transaction, the insider owned 11,944 shares in the company, valued at $4,398,975.20. The trade was a 39.77% 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.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors have recently modified their holdings of the company. BLB&B Advisors LLC raised its holdings in Sherwin-Williams by 8.1% during the third quarter. BLB&B Advisors LLC now owns 1,267 shares of the specialty chemicals company’s stock worth $410,000 after purchasing an additional 95 shares during the last quarter. Generali Asset Management SPA SGR grew its holdings in Sherwin-Williams by 20.9% in the third quarter. Generali Asset Management SPA SGR now owns 17,558 shares of the specialty chemicals company’s stock valued at $5,676,000 after purchasing an additional 3,036 shares during the last quarter. Independence Bank of Kentucky increased its position in shares of Sherwin-Williams by 4.0% in the third quarter. Independence Bank of Kentucky now owns 1,705 shares of the specialty chemicals company’s stock valued at $551,000 after buying an additional 65 shares in the last quarter. Center for Financial Planning Inc. increased its position in shares of Sherwin-Williams by 1,627.8% in the third quarter. Center for Financial Planning Inc. now owns 933 shares of the specialty chemicals company’s stock valued at $302,000 after buying an additional 879 shares in the last quarter. Finally, Park Avenue Securities LLC increased its position in shares of Sherwin-Williams by 1.3% in the third quarter. Park Avenue Securities LLC now owns 5,927 shares of the specialty chemicals company’s stock valued at $1,916,000 after buying an additional 74 shares in the last quarter. Hedge funds and other institutional investors own 77.67% of the company’s stock.

Sherwin-Williams Stock Performance

The firm has a 50 day moving average price of $330.66 and a 200-day moving average price of $333.48.

About Sherwin-Williams

The Sherwin-Williams Company (NYSE: SHW) develops, manufactures, distributes and sells paints, coatings and related products. Its offerings include architectural paints, industrial coatings, wood finishes, protective coatings, automotive refinishing products, floor coatings and related supplies marketed under brands such as Sherwin-Williams, Valspar, Minwax, Krylon and Dutch Boy.

Founded in 1866 and headquartered in Cleveland, Ohio, Sherwin-Williams serves professional contractors, do-it-yourself consumers, industrial manufacturers, commercial businesses and other customers.