Sherwin-Williams (NYSE:SHW) Shares Gap Down on Disappointing Earnings

The Sherwin-Williams Company (NYSE:SHW) gapped down before the market opened on Tuesday following a weaker than expected 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 trading hands.

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

Sherwin-Williams Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 7th. Investors of record on Friday, May 17th will be issued a $0.715 dividend. The ex-dividend date is Thursday, May 16th. This represents a $2.86 dividend on an annualized basis and a dividend yield of 0.95%. Sherwin-Williams’s payout ratio is currently 30.92%.

Analysts Set New Price Targets

SHW has been the topic of a number of research reports. StockNews.com upgraded shares of Sherwin-Williams from a “hold” rating to a “buy” rating in a report on Friday, March 8th. Robert W. Baird restated a “neutral” rating and set a $300.00 price target (up previously from $270.00) on shares of Sherwin-Williams in a report on Wednesday, January 3rd. UBS Group upgraded shares of Sherwin-Williams from a “neutral” rating to a “buy” rating and boosted their price target for the company from $312.00 to $402.00 in a report on Thursday, March 7th. JPMorgan Chase & Co. boosted their price target on shares of Sherwin-Williams from $285.00 to $317.00 and gave the company an “overweight” rating in a report on Friday, January 26th. Finally, Evercore ISI cut their target price on shares of Sherwin-Williams from $385.00 to $380.00 and set an “outperform” rating for the company in a research report on Tuesday, April 16th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $325.94.

Insiders Place Their Bets

In other Sherwin-Williams news, insider Todd D. Rea sold 2,449 shares of the firm’s stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $313.54, for a total value of $767,859.46. Following the sale, the insider now directly owns 9,329 shares in the company, valued at approximately $2,925,014.66. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, SVP Gregory P. Sofish sold 1,830 shares of the firm’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $320.70, for a total transaction of $586,881.00. Following the completion of the transaction, the senior vice president now directly owns 6,329 shares of the company’s stock, valued at approximately $2,029,710.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Todd D. Rea sold 2,449 shares of the firm’s stock in a transaction dated Wednesday, February 21st. The stock was sold at an average price of $313.54, for a total transaction of $767,859.46. Following the transaction, the insider now directly owns 9,329 shares of the company’s stock, valued at $2,925,014.66. The disclosure for this sale can be found here. Insiders have sold 32,050 shares of company stock worth $10,340,237 in the last ninety days. Insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On Sherwin-Williams

Hedge funds and other institutional investors have recently made changes to their positions in the business. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Sherwin-Williams by 16.2% during the 3rd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 47,568 shares of the specialty chemicals company’s stock worth $12,132,000 after acquiring an additional 6,639 shares during the period. AEGON ASSET MANAGEMENT UK Plc bought a new position in shares of Sherwin-Williams during the 4th quarter worth about $38,444,000. Machina Capital S.A.S. lifted its holdings in shares of Sherwin-Williams by 149.0% during the 3rd quarter. Machina Capital S.A.S. now owns 9,695 shares of the specialty chemicals company’s stock worth $2,473,000 after acquiring an additional 5,801 shares during the period. AIA Group Ltd lifted its holdings in shares of Sherwin-Williams by 20.8% during the 4th quarter. AIA Group Ltd now owns 16,312 shares of the specialty chemicals company’s stock worth $5,088,000 after acquiring an additional 2,810 shares during the period. Finally, Pearl River Capital LLC bought a new position in shares of Sherwin-Williams during the 3rd quarter worth about $4,517,000. 77.67% of the stock is owned by institutional investors.

Sherwin-Williams Stock Down 2.2 %

The stock has a market capitalization of $76.93 billion, a P/E ratio of 32.69, a P/E/G ratio of 2.42 and a beta of 1.15. The firm’s fifty day moving average is $328.40 and its 200-day moving average is $298.73. The company has a current ratio of 0.83, a quick ratio of 0.48 and a debt-to-equity ratio of 2.25.

About Sherwin-Williams

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.