Sherwin-Williams (NYSE:SHW) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Friday, Zacks.com reports. The brokerage presently has a $745.00 target price on the specialty chemicals company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 14.98% from the stock’s current price.
According to Zacks, “Sherwin-Williams' adjusted earnings and sales for the second quarter of 2020 beat the respective Zacks Consensus Estimate. The company is expected to gain from synergies of the Valspar acquisition and its operational improvement actions. The Valspar acquisition has strengthened its position as a leading paints and coatings provider globally, leveraging highly complementary offerings, strong brands and technologies. Sherwin-Williams is also focused on growth through expansion of operations. It remains committed to capture a larger share of its end-markets. The company is also witnessing favorable demand in domestic markets. The company's cost-control actions, working capital reductions, supply chain optimization and productivity improvement are also expected to support margins. It has also outperformed the industry over a year.”
Several other equities research analysts have also recently commented on the company. Citigroup raised their target price on Sherwin-Williams from $555.00 to $625.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Royal Bank of Canada raised their target price on Sherwin-Williams from $655.00 to $700.00 and gave the stock an “outperform” rating in a research note on Wednesday. Credit Suisse Group raised their target price on Sherwin-Williams from $625.00 to $734.00 and gave the stock an “outperform” rating in a research note on Wednesday. Deutsche Bank raised their target price on Sherwin-Williams from $675.00 to $700.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Wells Fargo & Co raised their target price on Sherwin-Williams from $675.00 to $700.00 and gave the stock an “overweight” rating in a research note on Wednesday. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, eleven have given a buy rating and two have issued a strong buy rating to the company. Sherwin-Williams presently has a consensus rating of “Buy” and an average target price of $641.95.
Sherwin-Williams (NYSE:SHW) last issued its quarterly earnings results on Tuesday, July 28th. The specialty chemicals company reported $7.10 earnings per share for the quarter, beating the consensus estimate of $5.69 by $1.41. The company had revenue of $4.60 billion during the quarter, compared to analysts’ expectations of $4.55 billion. Sherwin-Williams had a return on equity of 53.67% and a net margin of 9.83%. The business’s quarterly revenue was down 5.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $6.57 earnings per share. Sell-side analysts forecast that Sherwin-Williams will post 22.66 earnings per share for the current year.
In other news, SVP Thomas P. Gilligan sold 4,964 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $642.70, for a total value of $3,190,362.80. Following the transaction, the senior vice president now owns 8,751 shares in the company, valued at $5,624,267.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joel D. Baxter sold 6,830 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $580.00, for a total value of $3,961,400.00. Following the completion of the transaction, the insider now owns 8,894 shares in the company, valued at approximately $5,158,520. The disclosure for this sale can be found here. Insiders sold 19,481 shares of company stock worth $11,529,647 in the last 90 days. Corporate insiders own 0.55% of the company’s stock.
Several hedge funds have recently bought and sold shares of SHW. HMS Capital Management LLC bought a new stake in Sherwin-Williams during the second quarter worth $382,000. National Asset Management Inc. lifted its holdings in Sherwin-Williams by 7.1% during the second quarter. National Asset Management Inc. now owns 1,293 shares of the specialty chemicals company’s stock worth $747,000 after acquiring an additional 86 shares during the period. Lincoln National Corp lifted its holdings in Sherwin-Williams by 27.0% during the second quarter. Lincoln National Corp now owns 3,481 shares of the specialty chemicals company’s stock worth $2,011,000 after acquiring an additional 741 shares during the period. Sigma Planning Corp lifted its holdings in Sherwin-Williams by 6.0% during the second quarter. Sigma Planning Corp now owns 2,350 shares of the specialty chemicals company’s stock worth $1,358,000 after acquiring an additional 133 shares during the period. Finally, Fox Run Management L.L.C. bought a new stake in Sherwin-Williams during the second quarter worth $370,000. Institutional investors own 76.25% of the company’s stock.
Sherwin-Williams Company Profile
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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