Sherwin-Williams (NYSE:SHW) Lifted to “Hold” at Zacks Investment Research

Sherwin-Williams (NYSE:SHW) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday, Zacks.com reports. The brokerage currently has a $589.00 price objective on the specialty chemicals company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 3.90% from the company’s previous close.

According to Zacks, “Earnings estimates for the third quarter for Sherwin-Williams are going down of late. The company is likely to gain from significant synergies of the Valspar acquisition. It is also focused on growth through expansion of operations. The company's aggressive cost-control actions, working capital reductions, supply chain optimization and productivity improvement is expected to yield margin benefits. Sherwin-Williams has also outperformed the industry it belongs to so far this year. However, the company faces earnings headwinds from hefty Valspar acquisition charges in 2019. The company is also exposed to raw material cost inflation. Higher input costs are expected to hurt margins in 2019. Moreover, the company’s businesses continue to be affected by weakness across certain economies. It is also exposed to currency translation headwinds.”

Several other research firms have also weighed in on SHW. Buckingham Research lifted their target price on Sherwin-Williams from $460.00 to $485.00 and gave the stock a “neutral” rating in a report on Friday, October 11th. They noted that the move was a valuation call. Royal Bank of Canada lifted their target price on Sherwin-Williams to $550.00 and gave the stock an “outperform” rating in a report on Thursday, July 25th. BMO Capital Markets lifted their target price on Sherwin-Williams from $517.00 to $550.00 and gave the stock a “market perform” rating in a report on Wednesday, September 4th. Robert W. Baird set a $600.00 target price on Sherwin-Williams and gave the stock a “buy” rating in a report on Wednesday, August 21st. Finally, Northcoast Research reiterated a “neutral” rating on shares of Sherwin-Williams in a report on Monday, July 29th. Ten investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $547.00.

SHW stock opened at $566.89 on Monday. The business’s 50-day moving average price is $545.27 and its two-hundred day moving average price is $488.38. 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 firm has a market cap of $51.74 billion, a PE ratio of 30.59, a P/E/G ratio of 2.20 and a beta of 1.27. Sherwin-Williams has a 1-year low of $355.28 and a 1-year high of $578.36.

Sherwin-Williams (NYSE:SHW) last posted its earnings results on Tuesday, October 22nd. The specialty chemicals company reported $6.65 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $6.47 by $0.18. The firm had revenue of $4.87 billion for the quarter, compared to analyst estimates of $4.83 billion. Sherwin-Williams had a return on equity of 48.92% and a net margin of 6.61%. The company’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the previous year, the company posted $5.68 earnings per share. On average, analysts forecast that Sherwin-Williams will post 21.11 earnings per share for the current year.

In related news, insider Peter J. Ippolito sold 5,284 shares of Sherwin-Williams stock in a transaction dated Wednesday, July 31st. The stock was sold at an average price of $513.05, for a total value of $2,710,956.20. Following the sale, the insider now owns 4,284 shares of the company’s stock, valued at $2,197,906.20. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David F. Hodnik sold 501 shares of Sherwin-Williams stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $521.57, for a total value of $261,306.57. Following the completion of the sale, the director now directly owns 9,569 shares in the company, valued at approximately $4,990,903.33. The disclosure for this sale can be found here. Insiders sold a total of 7,412 shares of company stock worth $3,810,168 in the last three months. Company insiders own 0.50% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Krane Funds Advisors LLC acquired a new position in Sherwin-Williams during the second quarter worth approximately $25,000. Tortoise Investment Management LLC increased its position in Sherwin-Williams by 235.3% during the second quarter. Tortoise Investment Management LLC now owns 57 shares of the specialty chemicals company’s stock worth $26,000 after buying an additional 40 shares during the last quarter. Hexavest Inc. acquired a new position in Sherwin-Williams during the second quarter worth approximately $27,000. Next Capital Management LLC acquired a new position in Sherwin-Williams during the second quarter worth approximately $27,000. Finally, Lenox Wealth Advisors LLC increased its position in Sherwin-Williams by 55.3% during the third quarter. Lenox Wealth Advisors LLC now owns 59 shares of the specialty chemicals company’s stock worth $32,000 after buying an additional 21 shares during the last quarter. 76.69% of the stock is currently owned by institutional investors and hedge funds.

About Sherwin-Williams

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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