Zacks Investment Research Upgrades Sherwin-Williams Co. (SHW) to Buy
Sherwin-Williams Co. (NYSE:SHW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm currently has a $317.00 target price on the stock. Zacks Investment Research’s price objective indicates a potential upside of 12.26% from the company’s previous close.
According to Zacks, “Estimates for Sherwin-Williams have been stable of late. Sherwin-Williams is focusing on growth through acquisitions and cost control initiatives. The company should gain from its planned acquisition of Valspar. The buyout will allow Sherwin-Williams to strengthen its position as a leading paints and coatings provider globally, leveraging highly complementary offerings, strong brands and technologies. Valspar is a strategic fit and the merger will extend Sherwin-Williams’ brand portfolio and customer relationships in North America, and bolster its global finishes business. Further, the company's consumer as well as paint segments are recovering. The company also remains committed to increasing shareholder returns. “
SHW has been the subject of a number of other reports. Sterne Agee CRT raised Sherwin-Williams from a “neutral” rating to a “buy” rating in a report on Thursday, August 25th. Credit Agricole SA reaffirmed a “buy” rating and issued a $350.00 price target on shares of Sherwin-Williams in a report on Wednesday, September 14th. Morgan Stanley reaffirmed a “buy” rating on shares of Sherwin-Williams in a report on Thursday, June 16th. RBC Capital Markets reaffirmed an “outperform” rating and issued a $335.00 price target on shares of Sherwin-Williams in a report on Saturday, August 13th. Finally, Robert W. Baird reaffirmed an “outperform” rating and issued a $330.00 price target on shares of Sherwin-Williams in a report on Monday, July 25th. Three research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $324.31.
Sherwin-Williams (NYSE:SHW) opened at 282.38 on Monday. Sherwin-Williams has a one year low of $220.43 and a one year high of $312.48. The firm has a 50 day moving average of $284.69 and a 200 day moving average of $291.11. The firm has a market capitalization of $25.92 billion, a PE ratio of 23.81 and a beta of 0.87.
Sherwin-Williams (NYSE:SHW) last issued its quarterly earnings data on Thursday, July 21st. The company reported $4.06 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $4.16 by $0.10. Sherwin-Williams had a net margin of 9.50% and a return on equity of 110.16%. The company had revenue of $3.22 billion for the quarter, compared to the consensus estimate of $3.28 billion. During the same period in the previous year, the business posted $3.70 earnings per share. The firm’s revenue was up 2.8% compared to the same quarter last year. Equities analysts forecast that Sherwin-Williams will post $12.64 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Friday, September 9th. Stockholders of record on Friday, August 19th were given a dividend of $0.84 per share. The ex-dividend date was Wednesday, August 17th. This represents a $3.36 annualized dividend and a dividend yield of 1.19%. Sherwin-Williams’s payout ratio is currently 28.84%.
In related news, CEO John G. Morikis sold 30,353 shares of the business’s stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $298.75, for a total value of $9,067,958.75. Following the completion of the transaction, the chief executive officer now directly owns 119,804 shares in the company, valued at approximately $35,791,445. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joel D. Baxter sold 3,853 shares of the business’s stock in a transaction that occurred on Friday, August 5th. The shares were sold at an average price of $300.16, for a total value of $1,156,516.48. Following the completion of the transaction, the insider now owns 8,347 shares of the company’s stock, valued at $2,505,435.52. The disclosure for this sale can be found here. Insiders own 1.89% of the company’s stock.
Several institutional investors have recently modified their holdings of SHW. Williams Jones & Associates LLC acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $410,000. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $932,000. Kentucky Retirement Systems acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $1,963,000. Mason Street Advisors LLC acquired a new position in shares of Sherwin-Williams during the second quarter valued at about $3,110,000. Finally, Northwestern Mutual Wealth Management Co. raised its position in shares of Sherwin-Williams by 119.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 17,856 shares of the company’s stock valued at $5,244,000 after buying an additional 9,717 shares in the last quarter. Institutional investors and hedge funds own 74.62% of the company’s stock.
The Sherwin-Williams Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products. The Company has four operating segments: Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group. The Paint Stores Group markets and sells architectural paint and coatings, protective and marine products, original equipment manufacturer (OEM) product finishes and related items.
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