Sherwin-Williams (NYSE:SHW) Shares Gap Down Following Weak Earnings

The Sherwin-Williams Company (NYSE:SHW)’s stock price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $309.26, but opened at $297.83. Sherwin-Williams shares last traded at $297.31, with a volume of 1,034,924 shares.

The specialty chemicals company reported $2.17 earnings per share for the quarter, missing the consensus estimate of $2.22 by ($0.05). Sherwin-Williams had a net margin of 10.36% and a return on equity of 74.72%. The company had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.50 billion. During the same quarter in the prior year, the company posted $2.04 earnings per share. The company’s revenue for the quarter was down 1.4% on a year-over-year basis.

Sherwin-Williams Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Stockholders of record on Friday, May 17th will be paid a $0.715 dividend. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.86 annualized dividend and a dividend yield of 0.94%. Sherwin-Williams’s dividend payout ratio is currently 30.92%.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Northcoast Research raised Sherwin-Williams from a “neutral” rating to a “buy” rating and set a $360.00 target price on the stock in a report on Tuesday, February 27th. Seaport Res Ptn downgraded Sherwin-Williams from a “buy” rating to a “neutral” rating in a report on Monday, January 8th. Barclays boosted their target price on Sherwin-Williams from $285.00 to $315.00 and gave the stock an “equal weight” rating in a report on Monday, January 29th. UBS Group raised Sherwin-Williams from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $312.00 to $402.00 in a report on Thursday, March 7th. Finally, Evercore ISI reduced their target price on Sherwin-Williams from $385.00 to $380.00 and set an “outperform” rating on the stock in a report on Tuesday, April 16th. One analyst has rated the stock with a sell rating, six have given a hold rating and thirteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $333.39.

Insider Activity

In other news, insider Justin T. Binns sold 1,563 shares of the stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $338.87, for a total value of $529,653.81. Following the transaction, the insider now owns 14,564 shares of the company’s stock, valued at approximately $4,935,302.68. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, SVP Mary L. Garceau sold 23,518 shares of the company’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $322.66, for a total value of $7,588,317.88. Following the completion of the sale, the senior vice president now owns 28,475 shares in the company, valued at approximately $9,187,743.50. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Justin T. Binns sold 1,563 shares of the company’s stock in a transaction on Wednesday, March 13th. The shares were sold at an average price of $338.87, for a total transaction of $529,653.81. Following the completion of the sale, the insider now owns 14,564 shares of the company’s stock, valued at approximately $4,935,302.68. The disclosure for this sale can be found here. Insiders have sold a total of 32,050 shares of company stock valued at $10,340,237 in the last 90 days. 0.60% of the stock is owned by company insiders.

Institutional Trading of Sherwin-Williams

A number of large investors have recently made changes to their positions in SHW. OFI Invest Asset Management bought a new stake in shares of Sherwin-Williams in the 3rd quarter valued at $25,000. Union Savings Bank acquired a new position in shares of Sherwin-Williams during the 3rd quarter worth about $28,000. First United Bank & Trust acquired a new position in shares of Sherwin-Williams during the 4th quarter worth about $31,000. Lee Financial Co acquired a new position in shares of Sherwin-Williams during the 3rd quarter worth about $32,000. Finally, BluePath Capital Management LLC acquired a new position in shares of Sherwin-Williams during the 3rd quarter worth about $33,000. Institutional investors own 77.67% of the company’s stock.

Sherwin-Williams Stock Performance

The stock’s 50 day moving average price is $328.26 and its 200 day moving average price is $298.77. The company has a current ratio of 0.83, a quick ratio of 0.48 and a debt-to-equity ratio of 2.25. The company has a market capitalization of $77.29 billion, a price-to-earnings ratio of 32.84, a P/E/G ratio of 2.45 and a beta of 1.15.

Sherwin-Williams Company Profile

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group.