Sherwin-Williams Target of Unusually High Options Trading (NYSE:SHW)

The Sherwin-Williams Company (NYSE:SHW) saw some unusual options trading activity on Tuesday. Investors purchased 4,821 put options on the stock. This is an increase of approximately 449% compared to the typical volume of 878 put options.

Sherwin-Williams Price Performance

Shares of Sherwin-Williams stock opened at $335.23 on Wednesday. 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 company’s 50-day moving average price is $353.97 and its two-hundred day moving average price is $365.25. Sherwin-Williams has a 52 week low of $282.09 and a 52 week high of $400.42. The stock has a market cap of $84.31 billion, a PE ratio of 31.78, a price-to-earnings-growth ratio of 2.98 and a beta of 1.23.

Sherwin-Williams (NYSE:SHW) last issued its quarterly earnings results on Thursday, January 30th. The specialty chemicals company reported $2.09 earnings per share for the quarter, topping analysts’ consensus estimates 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 in the previous year, the company posted $1.81 EPS. As a group, sell-side analysts anticipate that Sherwin-Williams will post 12 EPS for the current fiscal year.

Sherwin-Williams Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Monday, March 3rd were paid a $0.79 dividend. The ex-dividend date was Monday, March 3rd. This represents a $3.16 dividend on an annualized basis and a yield of 0.94%. This is a boost from Sherwin-Williams’s previous quarterly dividend of $0.72. Sherwin-Williams’s dividend payout ratio (DPR) is currently 29.95%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on SHW shares. Citigroup reissued a “buy” rating and set a $423.00 price target (up previously from $418.00) on shares of Sherwin-Williams in a report on Wednesday, February 26th. StockNews.com downgraded shares of Sherwin-Williams from a “buy” rating to a “hold” rating in a report on Thursday, November 28th. Morgan Stanley cut 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 note on Tuesday, January 28th. Jefferies Financial Group restated a “hold” rating and set a $380.00 price objective (down from $423.00) on shares of Sherwin-Williams in a research note on Monday, March 10th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Sherwin-Williams from $370.00 to $390.00 and gave the company an “overweight” rating in a research note on Monday, February 3rd. One analyst has rated the stock with a sell rating, six have assigned a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, Sherwin-Williams presently has a consensus rating of “Moderate Buy” and an average target price of $401.13.

Insider Activity

In other news, insider Colin M. Davie sold 2,799 shares of the business’s stock in a transaction on 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 of the company’s stock, valued at approximately $1,933,009.50. The trade was a 34.28 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On Sherwin-Williams

Institutional investors have recently bought and sold shares of the stock. Merit Financial Group LLC increased its stake in Sherwin-Williams by 80.0% in the 4th quarter. Merit Financial Group LLC now owns 1,177 shares of the specialty chemicals company’s stock worth $400,000 after purchasing an additional 523 shares in the last quarter. Park Avenue Securities LLC grew its stake in Sherwin-Williams by 52.6% during the 4th quarter. Park Avenue Securities LLC now owns 6,680 shares of the specialty chemicals company’s stock valued at $2,271,000 after acquiring an additional 2,303 shares in the last quarter. Burney Co. grew its stake in Sherwin-Williams by 4.6% during the 4th quarter. Burney Co. now owns 17,272 shares of the specialty chemicals company’s stock valued at $5,871,000 after acquiring an additional 766 shares in the last quarter. Kerusso Capital Management LLC grew its stake in Sherwin-Williams by 75.9% during the 4th quarter. Kerusso Capital Management LLC now owns 10,290 shares of the specialty chemicals company’s stock valued at $3,498,000 after acquiring an additional 4,439 shares in the last quarter. Finally, Swedbank AB grew its stake in Sherwin-Williams by 4.2% during the 3rd quarter. Swedbank AB now owns 117,055 shares of the specialty chemicals company’s stock valued at $44,676,000 after acquiring an additional 4,681 shares in 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.