The Sherwin-Williams (NYSE:SHW) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday, Zacks.com reports. They currently have a $218.00 price target on the specialty chemicals company’s stock. Zacks Investment Research‘s price target suggests a potential downside of 13.39% from the company’s current price.
According to Zacks, “Earnings estimates for Sherwin-Williams for the first quarter have been stable over the past month. The company is seeing weakness in commercial and protective & marine businesses. Demand remains subdued in oil and gas, which is protective and marine’s largest single-end market. The resumption of commercial construction projects also remains sluggish. The commercial end market is also expected to remain soft over the near term. Demand for architectural paint also remains somewhat weak in non-domestic regions amid the coronavirus pandemic. Sherwin-Williams is seeing softness in Europe and Asia in its Consumer Brands Group unit. The company also faces headwinds from input cost inflation. Higher raw material costs are expected to weigh on its margins in 2021. Sizable acquisition-related charges may also affect its earnings.”
SHW has been the subject of a number of other reports. Royal Bank of Canada raised their price objective on The Sherwin-Williams from $255.00 to $268.67 and gave the stock an “outperform” rating in a research report on Friday, January 29th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised their price objective on The Sherwin-Williams from $278.67 to $283.00 and gave the stock a “buy” rating in a research report on Monday, March 29th. Wells Fargo & Company assumed coverage on The Sherwin-Williams in a research report on Tuesday, January 19th. They set an “overweight” rating for the company. TheStreet lowered The Sherwin-Williams from a “b” rating to a “c+” rating in a research report on Wednesday, March 31st. Finally, Wolfe Research assumed coverage on The Sherwin-Williams in a research report on Tuesday, March 23rd. They set a “peer perform” rating for the company. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and fifteen have assigned a buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $281.59.
The Sherwin-Williams (NYSE:SHW) last released its quarterly earnings results on Thursday, January 28th. The specialty chemicals company reported $1.70 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.62 by $0.08. The Sherwin-Williams had a return on equity of 56.69% and a net margin of 10.41%. The business had revenue of $4.49 billion during the quarter, compared to analyst estimates of $4.34 billion. During the same quarter last year, the company posted $1.42 EPS. The Sherwin-Williams’s revenue for the quarter was up 9.1% on a year-over-year basis. Equities analysts predict that The Sherwin-Williams will post 24.3 earnings per share for the current year.
The Sherwin-Williams announced that its board has initiated a share buyback plan on Wednesday, February 17th that allows the company to repurchase 15,000,000 outstanding shares. This repurchase authorization allows the specialty chemicals company to reacquire shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.
In other news, insider Peter J. Ippolito sold 1,726 shares of The Sherwin-Williams stock in a transaction that occurred on Tuesday, March 9th. The stock was sold at an average price of $711.87, for a total transaction of $1,228,687.62. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Jane M. Cronin sold 1,895 shares of The Sherwin-Williams stock in a transaction that occurred on Tuesday, March 9th. The stock was sold at an average price of $700.00, for a total value of $1,326,500.00. Following the sale, the senior vice president now directly owns 3,915 shares in the company, valued at approximately $2,740,500. The disclosure for this sale can be found here. Insiders sold a total of 37,466 shares of company stock worth $25,811,540 in the last ninety days. Insiders own 0.55% of the company’s stock.
Several large investors have recently made changes to their positions in SHW. Black Swift Group LLC acquired a new stake in shares of The Sherwin-Williams during the 4th quarter worth approximately $29,000. Vantage Consulting Group Inc acquired a new stake in shares of The Sherwin-Williams during the 4th quarter worth approximately $31,000. BNC Wealth Management LLC acquired a new stake in The Sherwin-Williams in the 3rd quarter valued at $33,000. Crescent Capital Consulting LLC acquired a new stake in The Sherwin-Williams in the 4th quarter valued at $37,000. Finally, Ellevest Inc. boosted its stake in The Sherwin-Williams by 114.8% in the 4th quarter. Ellevest Inc. now owns 58 shares of the specialty chemicals company’s stock valued at $43,000 after buying an additional 31 shares in the last quarter. 76.54% of the stock is currently owned by institutional investors.
About The 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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