John Morikis, CEO at Sherwin Williams (SHW), recently bought 2,125 shares. The buy increased his position by 1 percent, and came to a total cost of $504,890.
The CEO Was the last buyer of shares with a 2,207 pickup back in January, which also cost just over $500,000. Otherwise, a company vice president sold shares in February, at a price below where the stock trades today. 2022 saw a similar level of insider activity.
Overall, Sherwin Williams insiders own about 8.1 percent of shares.
The paint and coating producer and retailer is up about 8 percent in the past year, just slightly behind the return of the S&P 500.
Revenues have been flat, but earnings are up 11 percent, reflecting the company’s ability to pass on higher costs to customers.
Shares currently trade at about 25 times earnings, a discount to the 28-32 times earnings range over the past year.
Action to take: Shares look like a reasonable value here, particularly as a long-term holding. Sherwin Williams pays a 1 percent dividend yield at current prices, and the company has a history of increasing its payout over time.
For traders, shares have gotten oversold in the short-term, and look ready to trend higher. The January $250 calls, last going for about $7.65, could see mid-double-digit returns on a year end rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.