Analysts have slashed targets across the board. Options traders show unusual bullishness despite mounting demand concerns.
Short interest stands at 2.17% of free float as of April 23. Shorts added 39% to positions over the past month. Days to cover sits at 3.51. Cost to borrow ticked up 36% over 30 days to 0.42%. Utilisation climbed to 0.74%, still well below the 52-week high of 3.65%. The modest short presence suggests limited conviction on the bear side.
Put/call ratio collapsed to 0.54 on April 24. That's 1.57 standard deviations below the 20-day mean of 0.76. The ratio sits near the 52-week low of 0.51. Calls dominated recently — unusual given the analyst downgrades. Traders may be positioning for a relief rally or expect guidance to stabilise sentiment.
The mean price target sits at $379.90, implying 12.5% upside from the $337.70 close. Yet every recent move has been a cut. Wells Fargo downgraded SHW to Equal-Weight from Overweight on April 10, slashing the target to $365 from $410. B of A Securities lowered to $365 on April 21. UBS trimmed to $380 from $420 on April 2. Citigroup cut to $385 from $410 on April 1. Mizuho reduced to $371 from $410 on March 23. RBC Capital lowered to $376 from $390 on March 19. Benzinga's bull case cites a 60-basis-point gross margin expansion to 49.4% and an $80 million restructuring plan. The bear case flags revised 2025 guidance for flat-to-low-single-digit sales growth versus prior low-single-digit expectations, pressured by affordability concerns and housing headwinds.
The trailing P/E sits at 27.61, up 1.37 points over 30 days despite the share price rally. EV/EBITDA edged up 0.18 to 19.71 in the same window. Price-to-book climbed 1.06 to 16.90. SHW ranks in the 85th percentile on 12-month forward EPS growth momentum but just the 31st on 30-day EPS momentum and 27th on 90-day. Dividend score sits at the 99th percentile.
Insiders sold $14.2 million net over the past 90 days. Vanguard added 600,119 shares to its 9.4% stake as of March 31. State Street increased by 364,832 shares to 6.4%. FMR LLC bought 960,200 shares to reach 1.9%. The company's 401(k) plan trimmed 1.9 million shares.
SHW reported on January 29, April 21, and April 22 in recent quarters. The stock rose 7.7% over the past month heading into this print.
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