A notable divergence is emerging in the market for Sherwin-Williams stock. While short-term price action remains under pressure, sophisticated institutional investors are treating the pullback as a buying opportunity, with recent filings revealing significant accumulation.
Robust Fundamentals Underpin Confidence
Despite the near-term technical headwinds, the company’s underlying business performance remains strong. For the third quarter of 2025, Sherwin-Williams reported earnings per share (EPS) of $3.59 and revenue of $6.36 billion, surpassing analyst expectations on both counts. The firm’s return on equity (ROE) stands at an impressive 66.75 %. Management has reaffirmed its full-year 2025 guidance for adjusted EPS in the range of $11.25 to $11.45.
This fundamental strength appears to be the catalyst for institutional activity, even as the share price trades near $327, below its 50-day moving average of $337.73. The current level brings the stock closer to its 52-week low of approximately $309.
“Smart Money” Builds Positions
Recent regulatory disclosures highlight aggressive purchasing by several major asset managers. The collective stake held by institutions and hedge funds now represents 77.67 % of Sherwin-Williams’ outstanding shares.
Should investors sell immediately? Or is it worth buying Sherwin-Williams?
A detailed look at the filings shows particularly bold moves:
* Ossiam more than doubled its stake, increasing its holding by 103.7 % to 12,475 shares, valued at roughly $4.28 million.
* Cerity Partners LLC added to its position, growing it by 8.0 % to 84,366 shares.
* Daiwa Securities Group Inc. raised its investment by 5.0 %, bringing its total to 117,398 shares.
* Even State Street Corp, which already holds a massive position exceeding 15.4 million shares, expanded it further by 0.2%.
Analyst Consensus Points to Significant Upside
The bullish stance of these large investors aligns with the prevailing view on Wall Street. The consensus rating among analysts is a “Moderate Buy,” supported by a 12-month average price target of $390.87. This implies a potential upside of nearly 19 % from current trading levels.
Individual price targets from leading firms bolster this optimistic outlook:
* Wells Fargo: $410
* Royal Bank of Canada: $405
* Evercore ISI: $400
The strategic buying during a period of technical weakness suggests that major market participants view the dip as a tactical entry point rather than a reflection of deteriorating business health. All eyes will now be on the company’s upcoming final quarterly report for the full 2025 fiscal year.
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