Sherwin-Williams (NYSE:SHW) Reaches New 1-Year High After Better-Than-Expected Earnings

Sherwin-Williams Co (NYSE:SHW)’s share price hit a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $577.75 and last traded at $573.82, with a volume of 25766 shares. The stock had previously closed at $550.41.

The specialty chemicals company reported $6.65 earnings per share for the quarter, topping the consensus estimate of $6.47 by $0.18. Sherwin-Williams had a net margin of 6.61% and a return on equity of 48.92%. The firm had revenue of $4.87 billion for the quarter, compared to analysts’ expectations of $4.83 billion. During the same period in the previous year, the company posted $5.68 EPS. The company’s quarterly revenue was up 2.9% compared to the same quarter last year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 15th will be given a dividend of $1.13 per share. This represents a $4.52 annualized dividend and a yield of 0.78%. The ex-dividend date of this dividend is Thursday, November 14th. Sherwin-Williams’s payout ratio is 24.39%.

Several equities analysts have recently commented on SHW shares. JPMorgan Chase & Co. boosted their price target on shares of Sherwin-Williams from $435.00 to $490.00 and gave the company a “neutral” rating in a report on Wednesday, July 24th. Wells Fargo & Co increased their target price on shares of Sherwin-Williams from $510.00 to $565.00 and gave the stock an “outperform” rating in a report on Wednesday, July 24th. KeyCorp increased their target price on shares of Sherwin-Williams from $500.00 to $525.00 and gave the stock an “overweight” rating in a report on Wednesday, July 24th. Zacks Investment Research upgraded shares of Sherwin-Williams from a “sell” rating to a “hold” rating and set a $589.00 target price on the stock in a report on Monday. Finally, Wolfe Research initiated coverage on shares of Sherwin-Williams in a report on Tuesday, October 8th. They issued a “peer perform” rating and a $606.00 target price on the stock. Ten analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $547.00.

In related news, insider David B. Sewell sold 4,709 shares of the firm’s stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $493.52, for a total value of $2,323,985.68. Following the completion of the transaction, the insider now owns 12,604 shares of the company’s stock, valued at $6,220,326.08. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director David F. Hodnik sold 501 shares of the firm’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $521.57, for a total transaction of $261,306.57. Following the completion of the transaction, the director now directly owns 9,569 shares of the company’s stock, valued at approximately $4,990,903.33. The disclosure for this sale can be found here. Insiders have sold 12,121 shares of company stock valued at $6,134,153 in the last three months. 0.50% of the stock is owned by insiders.

A number of institutional investors have recently added to or reduced their stakes in the stock. Harvey Investment Co. LLC bought a new position in Sherwin-Williams in the third quarter valued at $206,000. Broadleaf Partners LLC lifted its position in shares of Sherwin-Williams by 2.6% during the 3rd quarter. Broadleaf Partners LLC now owns 6,398 shares of the specialty chemicals company’s stock valued at $3,518,000 after acquiring an additional 165 shares during the period. Whittier Trust Co. lifted its position in shares of Sherwin-Williams by 1.2% during the 3rd quarter. Whittier Trust Co. now owns 40,427 shares of the specialty chemicals company’s stock valued at $22,229,000 after acquiring an additional 483 shares during the period. Whittier Trust Co. of Nevada Inc. lifted its position in shares of Sherwin-Williams by 4.7% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 12,838 shares of the specialty chemicals company’s stock valued at $7,059,000 after acquiring an additional 581 shares during the period. Finally, Tuttle Tactical Management acquired a new position in shares of Sherwin-Williams during the 3rd quarter valued at $831,000. 76.69% of the stock is owned by institutional investors and hedge funds.

The company has a current ratio of 0.80, a quick ratio of 0.50 and a debt-to-equity ratio of 2.29. The stock’s 50-day moving average is $544.36 and its 200-day moving average is $487.72. The company has a market cap of $51.74 billion, a price-to-earnings ratio of 31.08, a P/E/G ratio of 2.20 and a beta of 1.27.

Sherwin-Williams Company Profile (NYSE:SHW)

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors and do-it-yourself homeowners.

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