Rhumbline Advisers has reduced its stake in The Sherwin-Williams Company (NYSE: SHW) by 1.2% during the second quarter of 2023, according to recent filings. The investment firm now holds 433,816 shares of the specialty chemicals company after selling 5,392 shares, with a total value of approximately $148,955,000.
Institutional investors have been actively adjusting their positions in Sherwin-Williams. Brighton Jones LLC increased its holdings by 73.6% in the fourth quarter, acquiring an additional 655 shares, bringing its total to 1,545 shares valued at $525,000. Additionally, AE Wealth Management LLC raised its position by 9.8% in the first quarter, owning 8,472 shares worth $2,959,000 after adding 759 shares. Other firms, such as Cetera Investment Advisers and Assetmark Inc., also reported increases in their holdings, reflecting a growing institutional interest in Sherwin-Williams.
Analysts Weigh In with Price Targets
Recent analyst reports indicate a generally positive outlook for Sherwin-Williams. Mizuho set a price target of $400.00 for the company, while Royal Bank of Canada followed suit with a target of $405.00 and an “outperform” rating. Citigroup has raised its target from $380.00 to $392.00, maintaining a “neutral” stance. UBS Group also adjusted its price objective to $422.00, reflecting an increased confidence in the company’s performance.
According to MarketBeat, the consensus among analysts is a “Moderate Buy” rating, with an average price target of $390.87. Currently, one analyst has rated the stock as a Strong Buy, ten have given it a Buy rating, and five analysts suggest a Hold rating.
Sherwin-Williams Financial Performance
The Sherwin-Williams Company reported its latest quarterly earnings on October 28, 2023, revealing earnings per share of $3.59, surpassing analysts’ expectations of $3.44 by $0.15. The company’s revenue for the quarter reached $6.36 billion, exceeding the consensus estimate of $6.21 billion and reflecting a year-over-year increase of 3.2%. The return on equity stood at 66.75%, with a net margin of 11.05%.
Sherwin-Williams has set its fiscal year 2025 guidance at earnings per share between $11.250 and $11.450. Analysts predict the company will report an average of $12 earnings per share for the current fiscal year.
Dividend Announcement and Stock Activity
The company also announced a quarterly dividend of $0.79, scheduled for payment on December 5, 2023. Shareholders on record as of November 14, 2023 will receive this dividend, representing an annualized rate of $3.16 and a yield of 0.9%. The ex-dividend date is set for November 14, with a payout ratio of 30.83%.
Insider trading activity has also been notable, with Justin T. Binns, an insider, selling 609 shares at an average price of $368.82 on August 25, 2023. Following this transaction, he holds 17,922 shares valued at approximately $6,609,992.04.
The Sherwin-Williams Company is engaged in the development, manufacture, distribution, and sale of paints, coatings, and related products for various markets, including professional, industrial, commercial, and retail customers. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group.
As of now, institutional investors and hedge funds collectively own 77.67% of the company’s stock, indicating a robust institutional interest in Sherwin-Williams.
