Illinois Tool Works Inc. (ITW) Stock Rating Upgraded by Zacks Investment Research
Illinois Tool Works Inc. (NYSE:ITW) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Over the long run, Illinois Tool's organic and inorganic growth tactics, its long-term Enterprise Strategy and sound capital allocation schemes will likely prove beneficial. In August, the company hiked its quarterly dividend rate by 18%. For 2016, the company increased its earnings guidance to $5.50-$5.70 from the previous expectation of $5.40-$5.60 per share. Operating margin is expected to exceed 22.5%, including more than 100 bps contribution from enterprise initiatives. However, the company is exposed to headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties. Organic revenue growth is expected to be 1-2%, down from the previous expectations, given the difficult operating conditions in the Welding segment.”
Other analysts have also recently issued reports about the company. Deutsche Bank AG reissued a “buy” rating and issued a $102.00 target price on shares of Illinois Tool Works in a research report on Thursday, August 25th. Jefferies Group upped their target price on Illinois Tool Works from $128.00 to $135.00 and gave the company a “buy” rating in a research report on Tuesday, October 11th. RBC Capital Markets reissued a “sector perform” rating and issued a $104.00 target price (up from $101.00) on shares of Illinois Tool Works in a research report on Sunday, July 24th. Credit Suisse Group AG set a $114.00 target price on Illinois Tool Works and gave the company a “hold” rating in a research report on Thursday, July 21st. Finally, Royal Bank Of Canada upped their target price on Illinois Tool Works from $101.00 to $104.00 and gave the company a “sector perform” rating in a research report on Thursday, July 21st. Eight analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $110.20.
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Shares of Illinois Tool Works (NYSE:ITW) traded up 0.37% on Wednesday, reaching $115.51. The company had a trading volume of 825,813 shares. The firm has a market capitalization of $41.00 billion, a P/E ratio of 21.51 and a beta of 1.11. The company’s 50-day moving average price is $118.03 and its 200 day moving average price is $111.03. Illinois Tool Works has a 52 week low of $79.15 and a 52 week high of $123.50.
Illinois Tool Works (NYSE:ITW) last released its quarterly earnings data on Wednesday, July 20th. The company reported $1.46 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.40 by $0.06. The business earned $3.43 billion during the quarter, compared to analysts’ expectations of $3.41 billion. Illinois Tool Works had a return on equity of 38.15% and a net margin of 14.65%. The business’s quarterly revenue was down .1% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.30 EPS. On average, analysts expect that Illinois Tool Works will post $5.62 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Thursday, October 6th. Investors of record on Friday, September 30th were issued a $0.65 dividend. The ex-dividend date of this dividend was Wednesday, September 28th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 2.26%. This is a boost from Illinois Tool Works’s previous quarterly dividend of $0.55. Illinois Tool Works’s dividend payout ratio is currently 48.42%.
In other Illinois Tool Works news, insider Sundaram Nagarajan sold 4,560 shares of the firm’s stock in a transaction dated Wednesday, September 7th. The stock was sold at an average price of $119.50, for a total value of $544,920.00. Following the transaction, the insider now directly owns 24,777 shares of the company’s stock, valued at $2,960,851.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ernest Scott Santi sold 74,077 shares of Illinois Tool Works stock in a transaction dated Friday, July 22nd. The stock was sold at an average price of $114.24, for a total value of $8,462,556.48. Following the completion of the transaction, the chief executive officer now owns 75,926 shares of the company’s stock, valued at $8,673,786.24. The disclosure for this sale can be found here. 0.80% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of ITW. Renaissance Technologies LLC bought a new position in shares of Illinois Tool Works during the first quarter worth approximately $55,010,000. PGGM Investments boosted its stake in Illinois Tool Works by 10.0% in the second quarter. PGGM Investments now owns 293,306 shares of the company’s stock worth $30,551,000 after buying an additional 26,733 shares during the period. British Airways Pensions Investment Management Ltd boosted its stake in Illinois Tool Works by 20.2% in the second quarter. British Airways Pensions Investment Management Ltd now owns 349,270 shares of the company’s stock worth $36,524,000 after buying an additional 58,630 shares during the period. Silvercrest Asset Management Group LLC boosted its stake in Illinois Tool Works by 4.0% in the first quarter. Silvercrest Asset Management Group LLC now owns 8,288 shares of the company’s stock worth $849,000 after buying an additional 317 shares during the period. Finally, Confluence Investment Management LLC boosted its stake in Illinois Tool Works by 1.1% in the second quarter. Confluence Investment Management LLC now owns 294,246 shares of the company’s stock worth $30,649,000 after buying an additional 3,141 shares during the period. Institutional investors own 74.89% of the company’s stock.
About Illinois Tool Works
Illinois Tool Works Inc (ITW) is a manufacturer of a range of industrial products and equipment. The Company operates through seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products and Specialty Products. It produces components and fasteners for automotive-related applications; equipment, consumables and related software for testing and measuring of materials and structures, and equipment and consumables used in the production of electronic subassemblies and microelectronics; adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance; arc welding equipment, consumables and accessories for a range of industrial and commercial applications, and beverage packaging equipment and consumables, product coding and marking equipment, and consumables, and appliance components and fasteners.
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