’ poor outlook in late January sent shares of the paint and coatings giant tumbling.Nonetheless, the company’s top executive bought a large block of stock.
Sherwin-Williams (ticker: SHW) reported strong fourth-quarter earnings on Jan. 26, but that was overshadowed by disappointing guidance. Shares lost a third of their value in 2022, worse than the 19% drop in the
and Sherwin-Williams stock is roughly flat so far this year, after its January slump.
Sherwin-Williams Chairman and CEO John G. Morikis paid $500,000 on Jan. 27—the day after the company’s fourth-quarter report—for 2,207 shares, at an average price of $226.70 each. According to a filing with the Securities and Exchange Commission, Morikis now owns 231,344 shares in a personal account, 56,743 through a stock plan, and 100,000 through a trust.
Sherwin-Williams didn’t respond to a request to make Morikis available for comment. He last purchased stock on the open market in February 2022, when he paid $519,000 for 2,000 shares, at an average price of $259.55 each.
Seaport Research Partners analyst Michael J. Harrison cut his price target on Sherwin-Williams stock to $270 from $285, and lowered sales and earnings estimates, in a Jan. 30 research report. Yet he kept a Buy rating on the shares, noting that Sherwin-Williams is a “high-quality company on sale, positioned to deliver on reduced 2023 expectations and return to better earnings growth in 2024 and beyond.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at email@example.com and follow @BarronsEdLin.