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

The Sherwin-Williams Company (NYSE:SHW) shares passed below its 200-day moving average during trading on Tuesday following a weaker than expected 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 traded.

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

Sherwin-Williams Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be issued a $0.80 dividend. This represents a $3.20 annualized dividend and a 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

Wall Street Analysts Forecast Growth

SHW has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective on shares of Sherwin-Williams from $365.00 to $380.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Rothschild & Co Redburn increased their target price on shares of Sherwin-Williams from $410.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Argus raised their price target on shares of Sherwin-Williams from $355.00 to $380.00 in a research report on Thursday, August 27th. Jefferies Financial Group restated a “hold” rating and issued a $353.00 price target on shares of Sherwin-Williams in a research note on Tuesday. Finally, BNP Paribas Exane upped their price objective on Sherwin-Williams from $345.00 to $360.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $381.17.

Insider Activity

In related news, insider Justin Binns sold 13,500 shares of the company’s stock in a transaction that occurred on 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 directly owned 21,937 shares in the company, valued at approximately $7,737,179.90. This represents a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Karl J. Jorgenrud sold 7,886 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the completion of the sale, the insider directly owned 11,944 shares in the company, valued at approximately $4,398,975.20. This trade represents a 39.77% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Eastern Bank lifted its position in Sherwin-Williams by 50.8% during the 2nd quarter. Eastern Bank now owns 89 shares of the specialty chemicals company’s stock worth $31,000 after acquiring an additional 30 shares during the period. Focus Financial Network Inc. increased its holdings in shares of Sherwin-Williams by 1.0% in the third quarter. Focus Financial Network Inc. now owns 3,068 shares of the specialty chemicals company’s stock valued at $992,000 after purchasing an additional 31 shares during the period. Verdence Capital Advisors LLC increased its holdings in shares of Sherwin-Williams by 4.0% in the third quarter. Verdence Capital Advisors LLC now owns 812 shares of the specialty chemicals company’s stock valued at $263,000 after purchasing an additional 31 shares during the period. Heartland Bank & Trust Co raised its stake in shares of Sherwin-Williams by 2.8% during the first quarter. Heartland Bank & Trust Co now owns 1,174 shares of the specialty chemicals company’s stock worth $376,000 after purchasing an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. raised its stake in shares of Sherwin-Williams by 8.5% during the first quarter. Physician Wealth Advisors Inc. now owns 432 shares of the specialty chemicals company’s stock worth $138,000 after purchasing an additional 34 shares during the last quarter. Institutional investors and hedge funds own 77.67% of the company’s stock.

Sherwin-Williams Trading Down 2.7%

The company 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.