Sherwin-Williams (SHW) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Sherwin-Williams (NYSE:SHW) from a hold rating to a buy rating in a research note issued to investors on Friday morning. Zacks Investment Research currently has $463.00 price target on the specialty chemicals company’s stock.
According to Zacks, “Sherwin-Williams has outperformed the industry it belongs to over a year. The buyout of Valspar has expanded the company's brand portfolio and positioned it as a leading paints and coatings provider globally. Sherwin-Williams should gain from significant synergies of the Valspar acquisition. Sherwin-Williams’ aggressive cost control initiatives, working capital reductions, supply chain optimization and productivity improvement should continue to yield margin benefits. It also remains focused on growth through expansion of operations.”
A number of other equities research analysts have also commented on SHW. Royal Bank of Canada restated a buy rating on shares of Sherwin-Williams in a report on Wednesday, September 20th. Robert W. Baird restated a buy rating and set a $375.00 price objective on shares of Sherwin-Williams in a report on Friday, September 29th. KeyCorp restated an overweight rating and set a $440.00 price objective (up from $415.00) on shares of Sherwin-Williams in a report on Wednesday, October 4th. Jefferies Group raised their price objective on shares of Sherwin-Williams from $364.00 to $400.00 and gave the stock a hold rating in a report on Wednesday, October 4th. Finally, Credit Suisse Group restated an outperform rating and set a $410.00 price objective (up from $375.00) on shares of Sherwin-Williams in a report on Wednesday, October 4th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of Buy and a consensus target price of $413.64.
Sherwin-Williams (NYSE:SHW) last posted its earnings results on Tuesday, October 24th. The specialty chemicals company reported $4.75 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $4.70 by $0.05. The company had revenue of $4.51 billion for the quarter, compared to analyst estimates of $4.45 billion. Sherwin-Williams had a net margin of 7.82% and a return on equity of 58.02%. The business’s revenue for the quarter was up 37.4% compared to the same quarter last year. During the same period last year, the business posted $4.23 earnings per share. research analysts forecast that Sherwin-Williams will post 15.02 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Friday, December 8th. Investors of record on Friday, November 17th were given a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a yield of 0.81%. The ex-dividend date of this dividend was Thursday, November 16th. Sherwin-Williams’s dividend payout ratio (DPR) is currently 29.90%.
In related news, insider Robert J. Davisson sold 8,800 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $390.07, for a total value of $3,432,616.00. Following the completion of the transaction, the insider now owns 14,812 shares of the company’s stock, valued at $5,777,716.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, SVP Robert J. Wells sold 2,946 shares of the firm’s stock in a transaction on Monday, December 4th. The shares were sold at an average price of $409.11, for a total transaction of $1,205,238.06. Following the completion of the transaction, the senior vice president now directly owns 18,363 shares of the company’s stock, valued at approximately $7,512,486.93. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,122 shares of company stock valued at $5,969,846. 1.69% of the stock is owned by insiders.
Several institutional investors and hedge funds have recently made changes to their positions in SHW. Tower Research Capital LLC TRC bought a new position in shares of Sherwin-Williams in the 2nd quarter valued at about $100,000. Spectrum Management Group Inc. bought a new position in shares of Sherwin-Williams in the 3rd quarter valued at about $162,000. Acrospire Investment Management LLC bought a new position in shares of Sherwin-Williams in the 2nd quarter valued at about $169,000. Salem Investment Counselors Inc. bought a new position in shares of Sherwin-Williams in the 2nd quarter valued at about $176,000. Finally, Montag A & Associates Inc. bought a new position in shares of Sherwin-Williams in the 3rd quarter valued at about $202,000. 75.60% of the stock is owned by institutional investors.
The Sherwin-Williams Company (Sherwin-Williams) is engaged in the development, manufacture, distribution and sale of paint, coatings and related products. The Company’s segments are Paint Stores Group, Consumer Group, Global Finishes Group, Latin America Coatings Group and Administrative. The Paint Stores Group markets and sells Sherwin-Williams branded architectural paint and coatings, protective and marine products, original equipment manufacturer (OEM) product finishes and related items.
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