Short Interest in The Sherwin-Williams Company (NYSE:SHW) Increases By 41.7%

The Sherwin-Williams Company (NYSE:SHW) was the target of a significant increase in short interest in February. As of February 28th, there was short interest totalling 6,520,000 shares, an increase of 41.7% from the February 13th total of 4,600,000 shares. Based on an average daily volume of 1,730,000 shares, the days-to-cover ratio is currently 3.8 days. Currently, 2.8% of the company’s shares are short sold.

Sherwin-Williams Stock Performance

Shares of SHW stock traded up $0.95 during trading hours on Monday, hitting $342.73. The company’s stock had a trading volume of 1,760,106 shares, compared to its average volume of 1,607,307. Sherwin-Williams has a 12-month low of $282.09 and a 12-month high of $400.42. The company has a current ratio of 0.79, a quick ratio of 0.46 and a debt-to-equity ratio of 2.02. The stock has a market cap of $86.20 billion, a PE ratio of 32.49, a price-to-earnings-growth ratio of 2.98 and a beta of 1.23. The company has a 50 day moving average of $353.85 and a 200 day moving average of $365.62.

Sherwin-Williams (NYSE:SHW) last announced its quarterly earnings results on Thursday, January 30th. The specialty chemicals company reported $2.09 earnings per share for the quarter, beating the consensus estimate of $2.07 by $0.02. Sherwin-Williams had a return on equity of 74.50% and a net margin of 11.61%. During the same period last year, the firm posted $1.81 earnings per share. On average, sell-side analysts forecast that Sherwin-Williams will post 12 EPS for the current fiscal year.

Sherwin-Williams Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were given a dividend of $0.79 per share. This is a boost from Sherwin-Williams’s previous quarterly dividend of $0.72. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $3.16 annualized dividend and a dividend yield of 0.92%. Sherwin-Williams’s payout ratio is presently 29.95%.

Analysts Set New Price Targets

Several research analysts recently weighed in on SHW shares. Royal Bank of Canada decreased their price objective on shares of Sherwin-Williams from $438.00 to $415.00 and set an “outperform” rating on the stock in a research report on Monday, February 3rd. Mizuho lowered their price target on shares of Sherwin-Williams from $435.00 to $408.00 and set an “outperform” rating for the company in a research note on Tuesday, January 7th. Zelman & Associates upgraded Sherwin-Williams to a “strong-buy” rating in a research report on Friday, January 17th. Citigroup restated a “buy” rating and issued a $423.00 target price (up previously from $418.00) on shares of Sherwin-Williams in a report on Wednesday, February 26th. Finally, Morgan Stanley decreased their price objective on shares of Sherwin-Williams from $450.00 to $405.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 28th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, ten have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, Sherwin-Williams currently has an average rating of “Moderate Buy” and a consensus target price of $401.13.

Insiders Place Their Bets

In related news, insider Colin M. Davie sold 2,799 shares of the stock in a transaction dated Thursday, February 27th. The shares were sold at an average price of $360.30, for a total transaction of $1,008,479.70. Following the completion of the transaction, the insider now owns 5,365 shares in the company, valued at approximately $1,933,009.50. This represents a 34.28 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Sherwin-Williams

Hedge funds have recently made changes to their positions in the company. Midwest Capital Advisors LLC acquired a new position in Sherwin-Williams during the 4th quarter worth about $26,000. Park Square Financial Group LLC purchased a new position in shares of Sherwin-Williams in the 4th quarter valued at about $27,000. Lee Danner & Bass Inc. acquired a new position in Sherwin-Williams during the 4th quarter worth approximately $28,000. FSA Wealth Management LLC acquired a new position in shares of Sherwin-Williams during the third quarter worth $32,000. Finally, True Wealth Design LLC increased its holdings in shares of Sherwin-Williams by 1,000.0% in the 3rd quarter. True Wealth Design LLC now owns 99 shares of the specialty chemicals company’s stock valued at $38,000 after acquiring an additional 90 shares during the last quarter. Hedge funds and other institutional investors own 77.67% of the company’s stock.

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.