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

Illinois Tool Works Inc. (NYSE:ITW) has been given a consensus recommendation of “Reduce” by the thirteen research firms that are presently covering the firm, MarketBeat.com reports. Five research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and one has given a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $271.9231.

Several equities analysts have recently commented on the company. Wells Fargo & Company upped their price target on Illinois Tool Works from $245.00 to $255.00 and gave the company an “underweight” rating in a research note on Monday, May 4th. Barclays decreased their price target on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating on the stock in a research note on Wednesday, April 1st. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $254.00 price target on shares of Illinois Tool Works in a research note on Thursday, April 30th. Evercore decreased their price target on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Finally, Citigroup upped their price target on Illinois Tool Works from $284.00 to $287.00 and gave the company a “neutral” rating in a research note on Monday, May 4th.

Illinois Tool Works Stock Performance

NYSE ITW opened at $268.13 on Monday. The stock’s fifty day moving average is $257.99 and its two-hundred day moving average is $264.14. The firm has a market capitalization of $77.14 billion, a P/E ratio of 24.90, a price-to-earnings-growth ratio of 4.60 and a beta of 1.01. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.86 and a current ratio of 1.19. Illinois Tool Works has a fifty-two week low of $238.82 and a fifty-two week high of $303.15.

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

Illinois Tool Works Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a $1.61 dividend. This represents a $6.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, June 30th. Illinois Tool Works’s dividend payout ratio is 59.80%.

Insider Activity at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon purchased 806 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average price of $247.99 per share, with a total value of $199,879.94. Following the purchase, the director directly owned 1,652 shares in the company, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 0.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Illinois Tool Works

Several large investors have recently modified their holdings of the business. Western Wealth Management LLC raised its holdings in shares of Illinois Tool Works by 5.6% in the 1st quarter. Western Wealth Management LLC now owns 2,043 shares of the industrial products company’s stock valued at $532,000 after buying an additional 109 shares during the period. Shariaportfolio Inc. purchased a new stake in shares of Illinois Tool Works in the 1st quarter valued at $1,485,000. Pine Valley Investments Ltd Liability Co raised its holdings in shares of Illinois Tool Works by 2.5% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 10,339 shares of the industrial products company’s stock valued at $2,693,000 after buying an additional 252 shares during the period. Optiver Holding B.V. purchased a new stake in shares of Illinois Tool Works in the 1st quarter valued at $153,000. Finally, Vestor Capital LLC raised its holdings in shares of Illinois Tool Works by 2,538.3% in the 1st quarter. Vestor Capital LLC now owns 14,484 shares of the industrial products company’s stock valued at $3,770,000 after buying an additional 13,935 shares during the period. Institutional investors and hedge funds own 79.77% of the company’s stock.

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.