Sherwin-Williams (NYSE:SHW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Sherwin-Williams' adjusted earnings for the first quarter topped the Zacks Consensus Estimate. Sales surged year over year on the back of the addition of Valspar sales, but fell short of expectations. The company cut its profit view for 2018. Sherwin-Williams has outperformed the industry it belongs to over a year. The buyout of Valspar has positioned the company as a leading paints and coatings provider globally. Sherwin-Williams should gain from significant synergies of the Valspar acquisition. The company is also benefiting from its actions to cut operating costs. It also remains focused on growth through expansion of operations. However, Sherwin-Williams faces earnings headwinds from Valspar acquisition charges. It also remains exposed to significant raw material cost pressure which may also weigh on its margins in 2018. The company is also facing some volume pressure in its consumer unit.”
Several other analysts also recently weighed in on SHW. Robert W. Baird reiterated a “buy” rating and issued a $475.00 target price on shares of Sherwin-Williams in a report on Wednesday, January 10th. KeyCorp reiterated an “overweight” rating and issued a $465.00 target price (up previously from $440.00) on shares of Sherwin-Williams in a report on Thursday, January 11th. Credit Suisse Group reiterated a “hold” rating and issued a $473.00 target price on shares of Sherwin-Williams in a report on Wednesday, January 24th. Citigroup lifted their target price on shares of Sherwin-Williams to $486.00 and gave the company a “buy” rating in a report on Friday, January 26th. Finally, Bank of America lifted their target price on shares of Sherwin-Williams from $435.00 to $470.00 and gave the company a “buy” rating in a report on Friday, January 26th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Sherwin-Williams presently has a consensus rating of “Buy” and an average price target of $438.62.
Shares of NYSE SHW opened at $372.72 on Thursday. The company has a market cap of $34,691.23, a PE ratio of 26.12, a PEG ratio of 2.07 and a beta of 1.17. The company has a debt-to-equity ratio of 2.68, a current ratio of 1.13 and a quick ratio of 0.67. Sherwin-Williams has a 1 year low of $326.68 and a 1 year high of $435.15.
Sherwin-Williams (NYSE:SHW) last announced its quarterly earnings results on Tuesday, April 24th. The specialty chemicals company reported $3.57 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $3.16 by $0.41. The business had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $3.94 billion. Sherwin-Williams had a net margin of 11.02% and a return on equity of 48.06%. The business’s revenue was up 43.6% compared to the same quarter last year. During the same quarter last year, the firm earned $2.27 EPS. sell-side analysts expect that Sherwin-Williams will post 15.2 EPS for the current fiscal year.
In other news, insider Peter J. Ippolito sold 750 shares of Sherwin-Williams stock in a transaction on Wednesday, March 14th. The shares were sold at an average price of $409.26, for a total transaction of $306,945.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.78% of the stock is currently owned by insiders.
Several institutional investors have recently added to or reduced their stakes in SHW. USA Mutuals Advisors Inc. purchased a new stake in shares of Sherwin-Williams during the 4th quarter worth $106,000. BTIM Corp. purchased a new stake in Sherwin-Williams in the fourth quarter valued at $202,000. Chemung Canal Trust Co. purchased a new stake in Sherwin-Williams in the fourth quarter valued at $204,000. New England Research & Management Inc. purchased a new stake in Sherwin-Williams in the fourth quarter valued at $205,000. Finally, S. R. Schill & Associates purchased a new stake in Sherwin-Williams in the fourth quarter valued at $205,000. 75.53% of the stock is owned by institutional investors and hedge funds.
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The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean, Europe, Asia, and Australia. The company operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group.
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