Sherwin-Williams (SHW) Lowered to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Sherwin-Williams (NYSE:SHW) from a buy rating to a hold rating in a research report report published on Thursday.

According to Zacks, “The buyout of Valspar has positioned Sherwin-Williams as a leading paints and coatings provider globally. Sherwin-Williams should gain from significant synergies of the Valspar acquisition. It also remains focused on growth through expansion of operations as reflected by increasing number of retail stores. The company is also benefiting from its actions to cut operating costs. However, Sherwin-Williams faces earnings headwinds from Valspar acquisition charges. It also remains exposed to raw material cost inflation and volume pressure in its consumer unit. Sherwin-Williams has also underperformed the industry it belongs to over the past six months.”

Other equities analysts have also issued research reports about the company. ValuEngine upgraded Sherwin-Williams from a hold rating to a buy rating in a research note on Thursday, July 26th. Edward Jones started coverage on Sherwin-Williams in a research report on Tuesday, September 4th. They set a hold rating on the stock. Gabelli started coverage on Sherwin-Williams in a research report on Friday, September 21st. They set a buy rating and a $553.00 price target on the stock. Citigroup downgraded Sherwin-Williams from a buy rating to a neutral rating and cut their price target for the stock from $492.00 to $435.00 in a research report on Wednesday, October 10th. Finally, Seaport Global Securities downgraded Sherwin-Williams from a buy rating to a neutral rating in a research report on Monday, September 17th. They noted that the move was a valuation call. Ten research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the stock. Sherwin-Williams has a consensus rating of Buy and an average price target of $467.42.

SHW stock traded down $2.27 during midday trading on Thursday, reaching $404.55. The stock had a trading volume of 27,630 shares, compared to its average volume of 851,280. The firm has a market capitalization of $38.35 billion, a price-to-earnings ratio of 28.19, a price-to-earnings-growth ratio of 1.65 and a beta of 1.24. The company has a debt-to-equity ratio of 2.59, a current ratio of 1.20 and a quick ratio of 0.75. Sherwin-Williams has a 52-week low of $362.36 and a 52-week high of $479.64.

Sherwin-Williams (NYSE:SHW) last issued its earnings results on Tuesday, July 24th. The specialty chemicals company reported $5.73 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $5.59 by $0.14. The company had revenue of $4.77 billion during the quarter, compared to analyst estimates of $4.65 billion. Sherwin-Williams had a return on equity of 46.68% and a net margin of 10.84%. The firm’s quarterly revenue was up 27.8% on a year-over-year basis. During the same quarter last year, the business posted $4.52 EPS. As a group, equities research analysts expect that Sherwin-Williams will post 19.24 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 7th. Stockholders of record on Friday, November 16th will be given a dividend of $0.86 per share. This represents a $3.44 dividend on an annualized basis and a dividend yield of 0.85%. The ex-dividend date is Thursday, November 15th. Sherwin-Williams’s dividend payout ratio (DPR) is presently 24.11%.

In other news, SVP Thomas P. Gilligan sold 5,080 shares of the firm’s stock in a transaction dated Tuesday, August 28th. The stock was sold at an average price of $458.04, for a total transaction of $2,326,843.20. Following the sale, the senior vice president now directly owns 7,043 shares in the company, valued at approximately $3,225,975.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David F. Hodnik sold 524 shares of the firm’s stock in a transaction dated Wednesday, August 8th. The shares were sold at an average price of $447.19, for a total value of $234,327.56. Following the sale, the director now owns 10,105 shares in the company, valued at $4,518,854.95. The disclosure for this sale can be found here. Insiders have sold a total of 34,775 shares of company stock worth $15,411,619 over the last 90 days. Insiders own 0.78% of the company’s stock.

Several large investors have recently bought and sold shares of SHW. LFA Lugano Financial Advisors SA acquired a new stake in shares of Sherwin-Williams during the 3rd quarter valued at about $112,000. Summit Trail Advisors LLC grew its position in shares of Sherwin-Williams by 37,388.4% during the 1st quarter. Summit Trail Advisors LLC now owns 113,215 shares of the specialty chemicals company’s stock valued at $113,000 after acquiring an additional 112,913 shares during the period. Fort L.P. acquired a new stake in shares of Sherwin-Williams during the 2nd quarter valued at about $124,000. Valeo Financial Advisors LLC grew its position in shares of Sherwin-Williams by 168.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 325 shares of the specialty chemicals company’s stock valued at $142,000 after acquiring an additional 204 shares during the period. Finally, Moneta Group Investment Advisors LLC grew its position in shares of Sherwin-Williams by 10,109.0% during the 2nd quarter. Moneta Group Investment Advisors LLC now owns 28,279 shares of the specialty chemicals company’s stock valued at $161,000 after acquiring an additional 28,002 shares during the period. Hedge funds and other institutional investors own 77.49% of the company’s stock.

About Sherwin-Williams

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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