Sherwin-Williams (NYSE:SHW) Shares Gap Up on Strong Earnings

The Sherwin-Williams Company (NYSE:SHW)’s share price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $332.20, but opened at $345.30. Sherwin-Williams shares last traded at $349.14, with a volume of 234,700 shares traded.

The specialty chemicals company reported $2.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.23 by $0.02. Sherwin-Williams had a net margin of 11.61% and a return on equity of 74.50%. The firm’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.17 EPS.

Sherwin-Williams Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 16th will be given a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a dividend yield of 0.91%. The ex-dividend date of this dividend is Friday, May 16th. Sherwin-Williams’s payout ratio is 29.95%.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Jefferies Financial Group reissued a “hold” rating and issued a $380.00 target price (down from $423.00) on shares of Sherwin-Williams in a research note on Monday, March 10th. Wells Fargo & Company cut their price target on shares of Sherwin-Williams from $380.00 to $350.00 and set an “equal weight” rating for the company in a report on Wednesday, April 9th. Barclays cut their price objective on Sherwin-Williams from $385.00 to $355.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 1st. Royal Bank of Canada dropped their price objective on Sherwin-Williams from $438.00 to $415.00 and set an “outperform” rating for the company in a research note on Monday, February 3rd. Finally, UBS Group lowered their target price on Sherwin-Williams from $430.00 to $400.00 and set a “buy” rating for the company in a report on Monday, April 7th. Six research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, Sherwin-Williams presently has a consensus rating of “Moderate Buy” and a consensus price target of $392.00.

Insider Buying and Selling

In related news, insider Colin M. Davie sold 2,799 shares of Sherwin-Williams stock in a transaction on Thursday, February 27th. The shares were sold at an average price of $360.30, for a total value of $1,008,479.70. Following the transaction, the insider now owns 5,365 shares in the company, valued at $1,933,009.50. This trade represents a 34.28 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Sherwin-Williams

Several large investors have recently modified their holdings of SHW. Legacy Capital Wealth Partners LLC lifted its stake in shares of Sherwin-Williams by 2.9% during the fourth quarter. Legacy Capital Wealth Partners LLC now owns 1,028 shares of the specialty chemicals company’s stock valued at $350,000 after acquiring an additional 29 shares during the period. Apella Capital LLC raised its stake in shares of Sherwin-Williams by 2.1% in the 4th quarter. Apella Capital LLC now owns 1,465 shares of the specialty chemicals company’s stock valued at $498,000 after purchasing an additional 30 shares during the period. Atlantic Edge Private Wealth Management LLC grew its holdings in shares of Sherwin-Williams by 0.8% during the fourth quarter. Atlantic Edge Private Wealth Management LLC now owns 3,742 shares of the specialty chemicals company’s stock worth $1,272,000 after buying an additional 30 shares in the last quarter. IMS Capital Management raised its holdings in shares of Sherwin-Williams by 2.4% in the fourth quarter. IMS Capital Management now owns 1,287 shares of the specialty chemicals company’s stock valued at $437,000 after purchasing an additional 30 shares during the last quarter. Finally, Coppell Advisory Solutions LLC boosted its holdings in Sherwin-Williams by 2.7% during the fourth quarter. Coppell Advisory Solutions LLC now owns 1,146 shares of the specialty chemicals company’s stock worth $388,000 after purchasing an additional 30 shares during the last quarter. 77.67% of the stock is currently owned by institutional investors.

Sherwin-Williams Price Performance

The company has a debt-to-equity ratio of 2.02, a quick ratio of 0.46 and a current ratio of 0.79. The company has a fifty day moving average price of $341.75 and a two-hundred day moving average price of $356.82. The company has a market cap of $87.34 billion, a P/E ratio of 32.88, a PEG ratio of 2.98 and a beta of 1.26.

Sherwin-Williams Company Profile

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.