Illinois Tool Works Inc. (NYSE:ITW) Given Average Recommendation of “Reduce” by Brokerages

Illinois Tool Works Inc. (NYSE:ITW) has received a consensus recommendation of “Reduce” from the twelve ratings firms that are presently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $261.5833.

Several brokerages have commented on ITW. Bank of America upgraded shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and raised their target price for the stock from $220.00 to $255.00 in a report on Tuesday, November 18th. Wells Fargo & Company lowered their price objective on shares of Illinois Tool Works from $250.00 to $245.00 and set an “underweight” rating on the stock in a research report on Monday, October 27th. Robert W. Baird set a $265.00 target price on Illinois Tool Works in a report on Monday, October 27th. Evercore ISI decreased their target price on Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating for the company in a research report on Monday, November 17th. Finally, Truist Financial dropped their price target on Illinois Tool Works from $298.00 to $275.00 and set a “hold” rating on the stock in a research report on Monday, October 27th.

Illinois Tool Works Stock Performance

Shares of NYSE ITW opened at $253.35 on Thursday. The company has a quick ratio of 1.11, a current ratio of 1.53 and a debt-to-equity ratio of 2.39. The stock has a market capitalization of $73.50 billion, a price-to-earnings ratio of 24.57, a PEG ratio of 10.98 and a beta of 1.14. The stock’s fifty day simple moving average is $247.95 and its 200 day simple moving average is $253.32. Illinois Tool Works has a 52-week low of $214.66 and a 52-week high of $278.13.

Illinois Tool Works (NYSE:ITW) last announced its earnings results on Friday, October 24th. The industrial products company reported $2.81 EPS for the quarter, beating the consensus estimate of $2.72 by $0.09. The business had revenue of $4.06 billion during the quarter, compared to the consensus estimate of $4.09 billion. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.Illinois Tool Works’s revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the business posted $3.91 earnings per share. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS. As a group, sell-side analysts forecast that Illinois Tool Works will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st will be given a $1.61 dividend. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, December 31st. Illinois Tool Works’s dividend payout ratio is 62.46%.

Insider Activity at Illinois Tool Works

In other news, Director Pamela B. Strobel sold 1,521 shares of the company’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $245.25, for a total value of $373,025.25. Following the transaction, the director directly owned 39,249 shares of the company’s stock, valued at approximately $9,625,817.25. This represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.88% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ITW. Frazier Financial Advisors LLC acquired a new position in Illinois Tool Works in the second quarter worth approximately $25,000. Corsicana & Co. bought a new stake in Illinois Tool Works in the third quarter worth approximately $26,000. SOA Wealth Advisors LLC. increased its stake in shares of Illinois Tool Works by 90.9% during the 2nd quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company’s stock worth $26,000 after purchasing an additional 50 shares during the last quarter. Saudi Central Bank bought a new position in shares of Illinois Tool Works during the 1st quarter valued at $29,000. Finally, Twin Peaks Wealth Advisors LLC acquired a new stake in shares of Illinois Tool Works in the 2nd quarter valued at $31,000. 79.77% of the stock is owned by institutional investors and hedge funds.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.