Illinois Tool Works Inc. (ITW) Upgraded to Hold at 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 report issued 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.”
A number of other research firms have also commented on ITW. Credit Suisse Group AG set a $114.00 price target on shares of Illinois Tool Works and gave the company a “hold” rating in a research report on Thursday, July 21st. Royal Bank Of Canada boosted their price target on shares of 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. Jefferies Group boosted their price target on shares of Illinois Tool Works from $128.00 to $135.00 and gave the company a “buy” rating in a research report on Tuesday, October 11th. Deutsche Bank AG reiterated a “buy” rating and set a $102.00 target price on shares of Illinois Tool Works in a research report on Thursday, August 25th. Finally, RBC Capital Markets reaffirmed a “sector perform” rating and issued a $104.00 target price (up previously from $101.00) on shares of Illinois Tool Works in a research note on Sunday, July 24th. Eight equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $110.20.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/19/illinois-tool-works-inc-itw-upgraded-to-hold-at-zacks-investment-research.html
Illinois Tool Works (NYSE:ITW) traded up 0.36% on Wednesday, hitting $115.50. 1,020,592 shares of the company were exchanged. The stock has a 50 day moving average price of $118.03 and a 200 day moving average price of $111.03. Illinois Tool Works has a one year low of $79.15 and a one year high of $123.50. The firm has a market cap of $41.00 billion, a price-to-earnings ratio of 21.51 and a beta of 1.11.
Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Wednesday, July 20th. The company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.06. Illinois Tool Works had a net margin of 14.65% and a return on equity of 38.15%. The company had revenue of $3.43 billion for the quarter, compared to the consensus estimate of $3.41 billion. During the same quarter in the previous year, the firm posted $1.30 EPS. The business’s revenue was down .1% compared to the same quarter last year. On average, equities research analysts forecast that Illinois Tool Works will post $5.62 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, October 6th. Investors of record on Friday, September 30th were given 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 yield of 2.26%. This is an increase from Illinois Tool Works’s previous quarterly dividend of $0.55. Illinois Tool Works’s dividend payout ratio (DPR) is 48.42%.
In related news, insider Sundaram Nagarajan sold 4,560 shares of the firm’s stock in a transaction on Wednesday, September 7th. The shares were sold at an average price of $119.50, for a total value of $544,920.00. Following the completion of the transaction, the insider now owns 24,777 shares of the company’s stock, valued at $2,960,851.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP Randall J. Scheuneman sold 15,641 shares of the firm’s stock in a transaction on Thursday, July 21st. The shares were sold at an average price of $114.21, for a total transaction of $1,786,358.61. Following the completion of the transaction, the vice president now directly owns 19,791 shares of the company’s stock, valued at approximately $2,260,330.11. The disclosure for this sale can be found here. 0.80% of the stock is currently owned by corporate insiders.
Hedge funds have recently made changes to their positions in the stock. Renaissance Technologies LLC purchased a new stake in shares of Illinois Tool Works during the first quarter worth approximately $55,010,000. PGGM Investments boosted its stake in shares of 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 in the last quarter. British Airways Pensions Investment Management Ltd boosted its stake in shares of 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 in the last quarter. Silvercrest Asset Management Group LLC boosted its stake in shares of 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 in the last quarter. Finally, Confluence Investment Management LLC boosted its stake in shares of 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 in the last quarter. Hedge funds and other 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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Illinois Tool Works Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Illinois Tool Works Inc. and related companies with MarketBeat.com's FREE daily email newsletter.