Illinois Tool Works Inc. (NYSE:ITW) Receives Consensus Rating of “Reduce” from Brokerages

Illinois Tool Works Inc. (NYSE:ITW) has been given an average recommendation of “Reduce” by the thirteen ratings firms that are currently covering the company, Marketbeat reports. Four analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and two have given a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $259.25.

A number of equities research analysts recently weighed in on the stock. Bank of America upgraded shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and lifted their price objective for the company from $220.00 to $255.00 in a research note on Tuesday, November 18th. Robert W. Baird set a $265.00 price target on shares of Illinois Tool Works in a research report on Monday, October 27th. The Goldman Sachs Group cut shares of Illinois Tool Works from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $258.00 to $230.00 in a report on Tuesday, December 16th. Wells Fargo & Company dropped their target price on Illinois Tool Works from $250.00 to $245.00 and set an “underweight” rating on the stock in a report on Monday, October 27th. Finally, Truist Financial decreased their price target on Illinois Tool Works from $298.00 to $275.00 and set a “hold” rating for the company in a research note on Monday, October 27th.

Illinois Tool Works Stock Performance

ITW opened at $249.09 on Monday. Illinois Tool Works has a twelve month low of $214.66 and a twelve month high of $278.13. The stock has a market cap of $72.26 billion, a PE ratio of 24.16, a price-to-earnings-growth ratio of 10.35 and a beta of 1.15. The business’s 50 day moving average is $247.95 and its 200-day moving average is $254.23. The company has a current ratio of 1.53, a quick ratio of 1.11 and a debt-to-equity ratio of 2.39.

Illinois Tool Works (NYSE:ITW) last posted 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. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The firm had revenue of $4.06 billion for the quarter, compared to analysts’ expectations of $4.09 billion. During the same period last year, the firm earned $3.91 EPS. The firm’s revenue was up 2.3% compared to the same quarter last year. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS. On average, analysts predict that Illinois Tool Works will post 10.39 earnings per share for the current year.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 9th. Investors of record on Wednesday, December 31st will be issued a dividend of $1.61 per share. This represents a $6.44 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Wednesday, December 31st. Illinois Tool Works’s payout ratio is presently 62.46%.

Insiders Place Their Bets

In other Illinois Tool Works news, Director Pamela B. Strobel sold 1,521 shares of the company’s stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $245.25, for a total value of $373,025.25. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.88% of the company’s stock.

Institutional Trading of Illinois Tool Works

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AIA Group Ltd purchased a new stake in Illinois Tool Works during the third quarter valued at about $718,000. Hudson Bay Capital Management LP boosted its stake in Illinois Tool Works by 123.4% in the 3rd quarter. Hudson Bay Capital Management LP now owns 23,063 shares of the industrial products company’s stock worth $6,014,000 after purchasing an additional 12,741 shares during the period. Allworth Financial LP grew its position in Illinois Tool Works by 8.1% during the 3rd quarter. Allworth Financial LP now owns 5,529 shares of the industrial products company’s stock worth $1,442,000 after purchasing an additional 414 shares in the last quarter. Swiss Life Asset Management Ltd raised its stake in Illinois Tool Works by 2.3% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 66,908 shares of the industrial products company’s stock valued at $17,447,000 after purchasing an additional 1,485 shares during the period. Finally, CIBC Bancorp USA Inc. purchased a new stake in shares of Illinois Tool Works in the third quarter valued at $11,089,000. 79.77% of the stock is owned by institutional investors and hedge funds.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.