Sherwin-Williams (NYSE:SHW) Shares Gap Up After Earnings Beat

Shares of The Sherwin-Williams Company (NYSE:SHW) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $336.08, but opened at $356.43. Sherwin-Williams shares last traded at $350.2930, with a volume of 1,667,592 shares.

The specialty chemicals company reported $3.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.44 by $0.15. The firm had revenue of $6.36 billion for the quarter, compared to analyst estimates of $6.21 billion. Sherwin-Williams had a return on equity of 66.91% and a net margin of 11.03%.Sherwin-Williams’s revenue was up 3.2% compared to the same quarter last year. During the same period in the previous year, the company earned $3.37 earnings per share. Sherwin-Williams has set its FY 2025 guidance at 11.250-11.450 EPS.

Sherwin-Williams Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 5th. Investors of record on Friday, November 14th will be given a $0.79 dividend. The ex-dividend date is Friday, November 14th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 0.9%. Sherwin-Williams’s dividend payout ratio (DPR) is 31.35%.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Bank of America decreased their price objective on Sherwin-Williams from $375.00 to $368.00 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Loop Capital decreased their price objective on Sherwin-Williams from $395.00 to $380.00 and set a “buy” rating for the company in a research report on Wednesday, July 23rd. Mizuho decreased their price objective on Sherwin-Williams from $400.00 to $385.00 and set an “outperform” rating for the company in a research report on Wednesday, July 23rd. Weiss Ratings restated a “buy (b-)” rating on shares of Sherwin-Williams in a research report on Wednesday, October 8th. Finally, Citigroup restated a “neutral” rating and set a $380.00 price objective (up from $375.00) on shares of Sherwin-Williams in a research report on Monday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Sherwin-Williams has a consensus rating of “Moderate Buy” and an average target price of $387.13.

Insider Buying and Selling

In other Sherwin-Williams news, CAO James P. Lang sold 860 shares of Sherwin-Williams stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $350.35, for a total value of $301,301.00. Following the transaction, the chief accounting officer directly owned 377 shares of the company’s stock, valued at $132,081.95. The trade was a 69.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Justin T. Binns sold 609 shares of Sherwin-Williams stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $368.82, for a total value of $224,611.38. Following the completion of the transaction, the insider directly owned 17,922 shares in the company, valued at approximately $6,609,992.04. This represents a 3.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.60% of the stock is currently owned by company insiders.

Institutional Trading of Sherwin-Williams

Institutional investors and hedge funds have recently modified their holdings of the company. MTM Investment Management LLC bought a new stake in shares of Sherwin-Williams during the second quarter valued at approximately $26,000. Valley National Advisers Inc. increased its position in shares of Sherwin-Williams by 68.0% during the second quarter. Valley National Advisers Inc. now owns 84 shares of the specialty chemicals company’s stock valued at $28,000 after purchasing an additional 34 shares during the period. Synergy Investment Management LLC boosted its stake in Sherwin-Williams by 583.3% in the 1st quarter. Synergy Investment Management LLC now owns 82 shares of the specialty chemicals company’s stock valued at $29,000 after buying an additional 70 shares in the last quarter. Barnes Dennig Private Wealth Management LLC acquired a new stake in Sherwin-Williams in the 1st quarter valued at $30,000. Finally, Vermillion & White Wealth Management Group LLC boosted its stake in Sherwin-Williams by 104.8% in the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 86 shares of the specialty chemicals company’s stock valued at $30,000 after buying an additional 44 shares in the last quarter. 77.67% of the stock is currently owned by institutional investors.

Sherwin-Williams Trading Up 5.7%

The company has a current ratio of 0.78, a quick ratio of 0.48 and a debt-to-equity ratio of 1.78. The firm has a market cap of $88.53 billion, a price-to-earnings ratio of 35.23, a price-to-earnings-growth ratio of 3.15 and a beta of 1.20. The company has a 50 day moving average of $349.61 and a 200 day moving average of $348.46.

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.