Is It Worthwhile For Investors To Follow These Insider Trades On The Sherwin-Williams Company (SHW)?


The Sherwin-Williams Company (NYSE:SHW) finished Friday with a subtraction of -$3.99 to close at $237.33, a downside of -1.65 percent. An average of 720,400 shares of common stock have been traded in the last five days. There was a fall of -$3.97 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 1,170,145 shares traded, while the 50-day average volume stands at 1,502,348.

SHW stock has decreased by -4.76% in the last month. The company shares reached their 1-month lowest point of $235.10 on 12/30/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $195.24 and a high of $354.15 in 52 weeks. It has reached a new high 1 time so far this year and lost -32.61% or -$114.83 in price. In spite of this, the price is down -32.99% from the 52-week high.

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Insider Transactions

SHW stock investors should be aware that The Sherwin-Williams Company (SHW) stock had its last reported insider trading activity 222 days ago on May 23.

Valuation Metrics

The Sherwin-Williams Company (SHW) has a trailing price-to-earnings (P/E) ratio of 32.11. The stock’s beta is 1.07. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.82, the price-to-book (PB) ratio at 23.54, and the price-to-cash flow ratio at 184.70.

The company has a payout ratio of 31.30%. The company’s most recent quarterly dividend payment was $0.60 a share, without any change from last year. Its latest increase dividend $0.05 reported on Wednesday February 16 2022.

Financial Health

The quick ratio of The Sherwin-Williams Company for the three months ended September 29 was 0.60, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 3.69 and a total debt to equity ratio of 4.06 for the quarter ending September 29. Its gross profit as reported stood at $8.54 billion compared to revenue of $19.94 billion.

Earnings Surprise

For the three-month period that ended September 29, The Sherwin-Williams Company had $9.59 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $685.1 million in the quarter, while revenues of $577.9 million were grew 26.7%. The analyst consensus anticipated The Sherwin-Williams Company’s latest quarter earnings to come in at $2.56 per share, but it turned out to be $2.83, a 10.50% surprise. For the quarter, EBITDA amounted to $1.14 billion. Shareholders own equity worth $259.14 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Sherwin-Williams Company (SHW) price momentum. RSI 9-day as of the close on 30 December was 39.83%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.82%.

As of today, SHW’s price is $239.64 -1.65% or -$3.97 from its 5-day moving average. SHW is currently trading -5.68% lower than its 20-day SMA and +2.14% higher than its 100-day SMA. However, the stock’s current price level is +14.52% above the SMA50 and -2.88% below the SMA200.

The stochastic %K and %D were 9.23% and 10.41%, respectively, and the average true range (ATR) was 5.62. With the 14-day stochastic at 7.30% and the average true range at 6.02, the RSI (14) stands at 44.62%. The stock has reached -1.11 on the 9-day MACD Oscillator while the 14-day reading was at -4.47.

Analyst Ratings

Seaport Research Partners upgraded The Sherwin-Williams Company (NYSE: SHW) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral.


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