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

Illinois Tool Works Inc. (NYSE:ITW) has been assigned an average recommendation of “Reduce” from the thirteen ratings firms that are currently covering the company, MarketBeat.com reports. Five equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $271.9231.

Several research analysts have commented on ITW shares. UBS Group reaffirmed a “neutral” rating and issued a $285.00 price target on shares of Illinois Tool Works in a research report on Wednesday, February 4th. Evercore dropped their price target on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. Robert W. Baird set a $278.00 price target on Illinois Tool Works in a research report on Wednesday, February 4th. Wells Fargo & Company boosted their price objective on Illinois Tool Works from $245.00 to $255.00 and gave the company an “underweight” rating in a research report on Monday, May 4th. Finally, Citigroup boosted their price objective on Illinois Tool Works from $284.00 to $287.00 and gave the company a “neutral” rating in a research report on Monday, May 4th.

Institutional Trading of Illinois Tool Works

Institutional investors and hedge funds have recently modified their holdings of the company. Siemens Fonds Invest GmbH increased its position in Illinois Tool Works by 70.1% in the third quarter. Siemens Fonds Invest GmbH now owns 18,226 shares of the industrial products company’s stock worth $4,753,000 after purchasing an additional 7,508 shares during the period. Madison Asset Management LLC increased its position in Illinois Tool Works by 411.8% in the third quarter. Madison Asset Management LLC now owns 87,875 shares of the industrial products company’s stock worth $22,914,000 after purchasing an additional 70,704 shares during the period. Hudson Bay Capital Management LP increased its position in Illinois Tool Works by 123.4% in the third 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. Gradient Investments LLC lifted its stake in Illinois Tool Works by 691.3% in the fourth quarter. Gradient Investments LLC now owns 62,677 shares of the industrial products company’s stock valued at $15,437,000 after buying an additional 54,756 shares during the period. Finally, Y.D. More Investments Ltd acquired a new position in Illinois Tool Works in the fourth quarter valued at about $2,498,000. 79.77% of the stock is currently owned by institutional investors.

Illinois Tool Works Stock Performance

Shares of NYSE ITW opened at $250.62 on Thursday. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The business’s 50 day moving average is $259.23 and its two-hundred day moving average is $262.48. The company has a market cap of $72.10 billion, a P/E ratio of 23.27, a P/E/G ratio of 4.27 and a beta of 1.01. Illinois Tool Works has a 12 month low of $238.82 and a 12 month high of $303.15.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, topping the consensus estimate of $2.57 by $0.09. The company had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a return on equity of 97.36% and a net margin of 19.32%.The company’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the previous year, the business posted $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, equities analysts expect that Illinois Tool Works will post 11.37 EPS for the current year.

Illinois Tool Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a dividend of $1.61 per share. The ex-dividend date is Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.6%. Illinois Tool Works’s payout ratio is currently 59.80%.

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.