Sherwin-Williams (SHW) Stock Rating Lowered by Zacks Investment Research

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

According to Zacks, “Sherwin-Williams should gain from significant synergies of the Valspar acquisition. The buyout has positioned the company as a leading paints and coatings provider globally. Sherwin-Williams 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 a year.”

Several other equities analysts have also recently commented on SHW. Gabelli initiated coverage on shares of Sherwin-Williams in a research report on Friday, September 21st. They issued a buy rating and a $553.00 price target for the company. ValuEngine cut shares of Sherwin-Williams from a buy rating to a hold rating in a research report on Wednesday, October 3rd. Citigroup cut shares of Sherwin-Williams from a buy rating to a neutral rating and decreased their price target for the company from $492.00 to $435.00 in a research report on Wednesday, October 10th. Credit Suisse Group set a $500.00 price target on shares of Sherwin-Williams and gave the company a buy rating in a research report on Monday, October 15th. Finally, Edward Jones raised shares of Sherwin-Williams from a hold rating to a buy rating in a research report on Tuesday, October 16th. Nine research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average target price of $459.10.

NYSE:SHW opened at $398.53 on Thursday. The company has a debt-to-equity ratio of 2.19, a current ratio of 1.04 and a quick ratio of 0.66. The company has a market cap of $37.31 billion, a P/E ratio of 27.93, a P/E/G ratio of 1.43 and a beta of 1.31. Sherwin-Williams has a fifty-two week low of $355.28 and a fifty-two week high of $479.64.

Sherwin-Williams (NYSE:SHW) last posted its quarterly earnings data on Thursday, October 25th. The specialty chemicals company reported $5.68 earnings per share for the quarter, missing the Zacks’ consensus estimate of $5.71 by ($0.03). Sherwin-Williams had a return on equity of 45.22% and a net margin of 10.92%. The company had revenue of $4.73 billion for the quarter, compared to analysts’ expectations of $4.78 billion. As a group, equities analysts forecast that Sherwin-Williams will post 18.54 EPS for the current year.

In other news, Director John M. Stropki acquired 675 shares of Sherwin-Williams stock in a transaction dated Monday, October 29th. The shares were acquired at an average cost of $375.00 per share, for a total transaction of $253,125.00. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 0.78% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the company. OppenheimerFunds Inc. boosted its stake in shares of Sherwin-Williams by 5.8% in the 2nd quarter. OppenheimerFunds Inc. now owns 3,482 shares of the specialty chemicals company’s stock worth $1,419,000 after buying an additional 191 shares during the last quarter. Voya Investment Management LLC raised its holdings in Sherwin-Williams by 2.9% in the 2nd quarter. Voya Investment Management LLC now owns 30,975 shares of the specialty chemicals company’s stock worth $12,624,000 after purchasing an additional 859 shares during the period. Bank of Nova Scotia raised its holdings in Sherwin-Williams by 17.3% in the 2nd quarter. Bank of Nova Scotia now owns 39,583 shares of the specialty chemicals company’s stock worth $16,140,000 after purchasing an additional 5,834 shares during the period. Royal London Asset Management Ltd. bought a new position in Sherwin-Williams in the 2nd quarter worth $14,343,000. Finally, CENTRAL TRUST Co raised its holdings in Sherwin-Williams by 67.3% in the 3rd quarter. CENTRAL TRUST Co now owns 3,681 shares of the specialty chemicals company’s stock worth $1,675,000 after purchasing an additional 1,481 shares during the period. Institutional investors and hedge funds own 76.22% 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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