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

Shares of Illinois Tool Works Inc. (NYSE:ITW) have earned a consensus recommendation of “Reduce” from the fourteen brokerages that are presently covering the company, MarketBeat Ratings reports. Five analysts have rated the stock with a sell rating, seven have given a hold rating and two have assigned a buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $272.9231.

ITW has been the topic of several analyst reports. Citigroup upped their target price on Illinois Tool Works from $271.00 to $284.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Illinois Tool Works in a research report on Wednesday, January 28th. Robert W. Baird set a $278.00 price objective on Illinois Tool Works in a research note on Wednesday, February 4th. The Goldman Sachs Group reissued a “sell” rating and issued a $253.00 target price on shares of Illinois Tool Works in a research note on Tuesday, February 3rd. Finally, Evercore lowered their target price on shares of Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating on the stock in a report on Monday, November 17th.

Insider Activity at Illinois Tool Works

In related news, EVP Axel Beck sold 4,223 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the transaction, the executive vice president directly owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. The trade was a 42.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ernest Scott Santi sold 167,345 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the completion of the sale, the director owned 258,766 shares in the company, valued at approximately $75,282,792.38. This trade represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.88% of the company’s stock.

Institutional Trading of Illinois Tool Works

Several hedge funds and other institutional investors have recently modified their holdings of ITW. Corsicana & Co. bought a new stake in shares of Illinois Tool Works during the third quarter worth approximately $26,000. Cresta Advisors Ltd. bought a new stake in Illinois Tool Works in the 4th quarter valued at $25,000. Motiv8 Investments LLC acquired a new position in Illinois Tool Works in the 4th quarter valued at $27,000. Kemnay Advisory Services Inc. bought a new position in Illinois Tool Works during the 4th quarter worth $27,000. Finally, Lodestone Wealth Management LLC acquired a new stake in shares of Illinois Tool Works during the fourth quarter worth $28,000. Institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Stock Performance

Shares of ITW opened at $292.93 on Tuesday. The stock has a market capitalization of $84.42 billion, a price-to-earnings ratio of 27.93, a PEG ratio of 15.79 and a beta of 1.15. Illinois Tool Works has a 12 month low of $214.66 and a 12 month high of $303.15. The firm has a fifty day simple moving average of $266.54 and a 200 day simple moving average of $258.78. The company has a current ratio of 1.21, a quick ratio of 0.89 and a debt-to-equity ratio of 2.07.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The firm had revenue of $4.09 billion for the quarter, compared to analyst estimates of $4.07 billion. During the same period in the previous year, the business earned $2.54 EPS. The company’s revenue was up 4.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Research analysts forecast that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 31st will be given a $1.61 dividend. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio (DPR) is presently 61.39%.

About Illinois Tool Works

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.