Sherwin-Williams (NYSE:SHW) Shares Gap Down Following Weak Earnings

The Sherwin-Williams Company (NYSE:SHW)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $309.26, but opened at $297.83. Sherwin-Williams shares last traded at $297.31, with a volume of 1,034,924 shares.

The specialty chemicals company reported $2.17 EPS for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.05). The firm had revenue of $5.37 billion during the quarter, compared to analyst estimates of $5.50 billion. Sherwin-Williams had a net margin of 10.36% and a return on equity of 74.72%. The company’s revenue was down 1.4% on a year-over-year basis. During the same period last year, the business posted $2.04 EPS.

Sherwin-Williams Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 7th. Investors of record on Friday, May 17th will be issued a dividend of $0.715 per share. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.86 dividend on an annualized basis and a yield of 0.96%. Sherwin-Williams’s dividend payout ratio (DPR) is currently 30.92%.

Analysts Set New Price Targets

SHW has been the topic of a number of recent research reports. UBS Group raised Sherwin-Williams from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $312.00 to $402.00 in a report on Thursday, March 7th. Citigroup raised their price target on Sherwin-Williams from $360.00 to $390.00 and gave the stock a “buy” rating in a research report on Wednesday, April 10th. Wolfe Research assumed coverage on Sherwin-Williams in a report on Friday, March 1st. They issued a “peer perform” rating for the company. Mizuho dropped their price objective on Sherwin-Williams from $352.00 to $340.00 and set a “buy” rating for the company in a report on Friday, January 26th. Finally, Seaport Res Ptn cut Sherwin-Williams from a “buy” rating to a “neutral” rating in a research note on Monday, January 8th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and thirteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $325.94.

Insider Transactions at Sherwin-Williams

In other Sherwin-Williams news, SVP Gregory P. Sofish sold 1,830 shares of the business’s stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $320.70, for a total value of $586,881.00. Following the completion of the transaction, the senior vice president now owns 6,329 shares in the company, valued at $2,029,710.30. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, insider Todd D. Rea sold 2,449 shares of the company’s stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $313.54, for a total value of $767,859.46. Following the completion of the sale, the insider now directly owns 9,329 shares of the company’s stock, valued at $2,925,014.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Gregory P. Sofish sold 1,830 shares of the company’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $320.70, for a total transaction of $586,881.00. Following the completion of the sale, the senior vice president now directly owns 6,329 shares of the company’s stock, valued at $2,029,710.30. The disclosure for this sale can be found here. Insiders sold 32,050 shares of company stock worth $10,340,237 in the last 90 days. Insiders own 0.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Sherwin-Williams by 16.2% in the third quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 47,568 shares of the specialty chemicals company’s stock valued at $12,132,000 after purchasing an additional 6,639 shares in the last quarter. AEGON ASSET MANAGEMENT UK Plc acquired a new position in shares of Sherwin-Williams during the 4th quarter valued at $38,444,000. Machina Capital S.A.S. increased its stake in Sherwin-Williams by 149.0% during the 3rd quarter. Machina Capital S.A.S. now owns 9,695 shares of the specialty chemicals company’s stock worth $2,473,000 after buying an additional 5,801 shares during the period. AIA Group Ltd increased its position in shares of Sherwin-Williams by 20.8% in the 4th quarter. AIA Group Ltd now owns 16,312 shares of the specialty chemicals company’s stock worth $5,088,000 after purchasing an additional 2,810 shares during the last quarter. Finally, Pearl River Capital LLC bought a new stake in shares of Sherwin-Williams in the 3rd quarter worth about $4,517,000. 77.67% of the stock is currently owned by institutional investors and hedge funds.

Sherwin-Williams Price Performance

The company’s fifty day moving average price is $328.50 and its 200 day moving average price is $298.39. The company has a debt-to-equity ratio of 2.25, a quick ratio of 0.48 and a current ratio of 0.83. The firm has a market capitalization of $75.46 billion, a price-to-earnings ratio of 33.43, a price-to-earnings-growth ratio of 2.42 and a beta of 1.15.

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.