Sherwin-Williams Co (SHW) Rating Increased to Buy at Zacks Investment Research
Sherwin-Williams Co (NYSE:SHW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage currently has a $371.00 target price on the specialty chemicals company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 11.93% from the company’s previous close.
According to Zacks, “Estimates for the current quarter earnings of Sherwin-Williams have been going up lately. The company has outperformed the Zacks categorized Paints & Allied Products industry over the past three months. Sherwin-Williams is benefiting from its cost control initiatives. Moreover, it remains focused on growth through acquisitions and expansion of operations. Sherwin-Williams should gain from its planned acquisition of Valspar which will allow it to strengthen its position as a leading paints and coatings provider globally.”
Several other research firms have also weighed in on SHW. Barclays PLC lifted their target price on Sherwin-Williams from $310.00 to $335.00 and gave the stock an “equal weight” rating in a report on Monday, April 24th. Morgan Stanley reiterated an “overweight” rating and set a $375.00 target price (up from $335.00) on shares of Sherwin-Williams in a report on Wednesday, May 17th. Vetr lowered Sherwin-Williams from a “buy” rating to a “hold” rating and set a $313.74 target price on the stock. in a report on Thursday, January 26th. KeyCorp upgraded Sherwin-Williams from a “sector weight” rating to an “overweight” rating and set a $375.00 target price on the stock in a report on Tuesday, April 4th. Finally, Credit Suisse Group AG set a $344.00 target price on Sherwin-Williams and gave the stock a “buy” rating in a report on Thursday, April 20th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and eleven have given a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $340.73.
Shares of Sherwin-Williams (NYSE:SHW) traded up 0.44% during midday trading on Tuesday, hitting $332.92. The stock had a trading volume of 189,657 shares. Sherwin-Williams has a one year low of $239.48 and a one year high of $339.62. The firm has a market capitalization of $30.81 billion, a PE ratio of 26.08 and a beta of 1.00. The firm’s 50-day moving average price is $325.51 and its 200-day moving average price is $297.96.
Sherwin-Williams (NYSE:SHW) last announced its quarterly earnings data on Thursday, April 20th. The specialty chemicals company reported $2.27 EPS for the quarter, topping analysts’ consensus estimates of $2.07 by $0.20. Sherwin-Williams had a return on equity of 82.20% and a net margin of 9.40%. The business had revenue of $2.76 billion during the quarter, compared to analysts’ expectations of $2.72 billion. During the same period in the previous year, the firm earned $1.81 earnings per share. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. On average, equities analysts predict that Sherwin-Williams will post $14.19 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, June 2nd. Investors of record on Friday, May 19th will be given a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a dividend yield of 1.03%. The ex-dividend date of this dividend is Wednesday, May 17th. Sherwin-Williams’s dividend payout ratio is currently 28.50%.
In related news, SVP Thomas P. Gilligan sold 6,350 shares of Sherwin-Williams stock in a transaction dated Tuesday, May 9th. The stock was sold at an average price of $338.70, for a total value of $2,150,745.00. Following the sale, the senior vice president now owns 7,936 shares of the company’s stock, valued at $2,687,923.20. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joel D. Baxter sold 5,470 shares of Sherwin-Williams stock in a transaction dated Monday, May 15th. The shares were sold at an average price of $335.50, for a total value of $1,835,185.00. Following the completion of the sale, the insider now directly owns 8,523 shares in the company, valued at approximately $2,859,466.50. The disclosure for this sale can be found here. In the last ninety days, insiders sold 46,955 shares of company stock worth $15,525,668. 1.89% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in SHW. Massmutual Trust Co. FSB ADV bought a new stake in Sherwin-Williams during the fourth quarter worth about $104,000. American Beacon Advisors Inc. bought a new stake in Sherwin-Williams during the first quarter worth about $106,000. Parallel Advisors LLC bought a new stake in Sherwin-Williams during the fourth quarter worth about $113,000. SRS Capital Advisors Inc. bought a new stake in Sherwin-Williams during the fourth quarter worth about $118,000. Finally, Barometer Capital Management Inc. bought a new stake in Sherwin-Williams during the first quarter worth about $124,000. 72.94% of the stock is currently owned by institutional investors and hedge funds.
Sherwin-Williams Company Profile
The Sherwin-Williams Company (Sherwin-Williams) is engaged in the development, manufacture, distribution and sale of paint, coatings and related products. The Company’s segments are Paint Stores Group, Consumer Group, Global Finishes Group, Latin America Coatings Group and Administrative. The Paint Stores Group markets and sells Sherwin-Williams branded architectural paint and coatings, protective and marine products, original equipment manufacturer (OEM) product finishes and related items.
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