Sherwin-Williams (NYSE:SHW) Shares Gap Down Following Weak Earnings

The Sherwin-Williams Company (NYSE:SHW)’s stock price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $335.16, but opened at $315.64. Sherwin-Williams shares last traded at $323.2980, with a volume of 309,479 shares traded.

The specialty chemicals company reported $3.63 EPS for the quarter, missing analysts’ consensus estimates of $3.69 by ($0.06). The firm had revenue of $6.86 billion during the quarter, compared to analysts’ expectations of $6.78 billion. Sherwin-Williams had a return on equity of 67.97% and a net margin of 11.01%. The business’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same quarter last year, the business earned $3.59 earnings per share.

Sherwin-Williams Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be issued a $0.80 dividend. The ex-dividend date is Friday, November 13th. This represents a $3.20 annualized dividend and a yield of 1.0%. Sherwin-Williams’s dividend payout ratio (DPR) is presently 29.49%.

Trending Headlines about Sherwin-Williams

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Third-quarter revenue increased 7.9% year over year to $6.86 billion, exceeding analyst estimates of approximately $6.78 billion. The sales performance indicates continued demand across Sherwin-Williams’ business despite cost pressures. SHW Q3 Earnings Lag Estimates on Higher Costs, Sales Beat
• Positive Sentiment: Evercore ISI upgraded SHW to Outperform ahead of the earnings release, providing a supportive analyst view of the company’s longer-term prospects. Evercore ISI Upgrades Sherwin-Williams to Outperform
• Neutral Sentiment: Management projected 2026 adjusted earnings per share of $11.85 to $12.15. The range brackets the FactSet consensus estimate of $12.09, but its midpoint is slightly below expectations, limiting the positive impact of the guidance. Sherwin-Williams Expects 2026 Adjusted EPS Range
• Negative Sentiment: Third-quarter adjusted EPS was $3.63, below consensus estimates ranging from $3.65 to $3.69, although it improved from $3.59 a year earlier. The miss ended the company’s recent earnings-beat streak and raised concerns about profitability. Sherwin-Williams Stock Drops on Earnings Miss
• Negative Sentiment: Higher costs pressured margins, offsetting the revenue beat. With Sherwin-Williams trading at a relatively elevated earnings multiple, investors appear particularly sensitive to evidence that input and operating-cost inflation could restrict future earnings growth. Sherwin-Williams Q3 Earnings Miss Estimates

Analyst Ratings Changes

Several research firms have issued reports on SHW. Rothschild & Co Redburn boosted their price objective on shares of Sherwin-Williams from $410.00 to $420.00 and gave the stock a “buy” rating in a research note on Tuesday, August 18th. Weiss Ratings raised shares of Sherwin-Williams from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 9th. Guggenheim assumed coverage on shares of Sherwin-Williams in a research note on Monday, August 3rd. They issued a “buy” rating and a $400.00 target price on the stock. BNP Paribas Exane lifted their target price on shares of Sherwin-Williams from $345.00 to $360.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Finally, DA Davidson set a $400.00 price target on shares of Sherwin-Williams and gave the stock a “buy” rating in a research report on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $381.17.

Insiders Place Their Bets

In related news, insider Karl J. Jorgenrud sold 7,886 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $368.30, for a total value of $2,904,413.80. Following the transaction, the insider owned 11,944 shares in the company, valued at approximately $4,398,975.20. The trade was a 39.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Justin Binns sold 13,500 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $352.70, for a total value of $4,761,450.00. Following the completion of the transaction, the insider directly owned 21,937 shares of the company’s stock, valued at $7,737,179.90. This represents a 38.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.23% of the company’s stock.

Institutional Investors Weigh In On Sherwin-Williams

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Sherwin-Williams during the 2nd quarter valued at approximately $6,100,083,000. Wellington Management Group LLP grew its position in shares of Sherwin-Williams by 133.7% during the second quarter. Wellington Management Group LLP now owns 2,784,679 shares of the specialty chemicals company’s stock worth $958,821,000 after buying an additional 1,593,009 shares in the last quarter. Amundi grew its position in shares of Sherwin-Williams by 20.6% during the first quarter. Amundi now owns 2,200,895 shares of the specialty chemicals company’s stock worth $705,497,000 after buying an additional 376,505 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Sherwin-Williams in the second quarter worth $547,097,000. Finally, Dimensional Fund Advisors LP increased its stake in shares of Sherwin-Williams by 2.9% in the first quarter. Dimensional Fund Advisors LP now owns 1,417,166 shares of the specialty chemicals company’s stock worth $454,226,000 after buying an additional 39,853 shares during the last quarter. 77.67% of the stock is currently owned by hedge funds and other institutional investors.

Sherwin-Williams Stock Down 3.4%

The stock has a market capitalization of $78.63 billion, a price-to-earnings ratio of 29.80, a PEG ratio of 2.63 and a beta of 1.08. The firm’s fifty day moving average is $331.59 and its 200-day moving average is $333.53. The company has a debt-to-equity ratio of 2.16, a current ratio of 0.73 and a quick ratio of 0.46.

About Sherwin-Williams

The Sherwin-Williams Company (NYSE: SHW) develops, manufactures, distributes and sells paints, coatings and related products. Its offerings include architectural paints, industrial coatings, wood finishes, protective coatings, automotive refinishing products, floor coatings and related supplies marketed under brands such as Sherwin-Williams, Valspar, Minwax, Krylon and Dutch Boy.

Founded in 1866 and headquartered in Cleveland, Ohio, Sherwin-Williams serves professional contractors, do-it-yourself consumers, industrial manufacturers, commercial businesses and other customers.