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

Shares of Illinois Tool Works Inc. (NYSE:ITW) have earned a consensus rating of “Reduce” from the thirteen brokerages that are covering the stock, MarketBeat reports. Five investment analysts have rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $274.00.

A number of equities research analysts have weighed in on ITW shares. Barclays lowered their target price on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating for the company in a report on Wednesday, April 1st. Evercore cut their price target on Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Weiss Ratings lowered shares of Illinois Tool Works from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. JPMorgan Chase & Co. boosted their target price on shares of Illinois Tool Works from $295.00 to $310.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Finally, Wells Fargo & Company increased their target price on shares of Illinois Tool Works from $245.00 to $255.00 and gave the stock an “underweight” rating in a research note on Monday, May 4th.

Illinois Tool Works Stock Performance

Shares of Illinois Tool Works stock opened at $276.59 on Friday. The business has a 50-day moving average price of $261.69 and a two-hundred day moving average price of $266.84. Illinois Tool Works has a 1-year low of $238.82 and a 1-year high of $303.15. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04. The company has a market cap of $79.57 billion, a P/E ratio of 25.68, a PEG ratio of 4.71 and a beta of 1.00.

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

Illinois Tool Works Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were issued a dividend of $1.61 per share. The ex-dividend date was Tuesday, June 30th. This represents a $6.44 annualized dividend and a dividend yield of 2.3%. Illinois Tool Works’s dividend payout ratio is currently 59.80%.

Insider Activity

In related news, Director Jennifer F. Scanlon acquired 806 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average price of $247.99 per share, with a total value of $199,879.94. Following the transaction, the director directly owned 1,652 shares of the company’s stock, valued at $409,679.48. This trade represents a 95.27% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of Illinois Tool Works in the 4th quarter worth $808,351,000. Auto Owners Insurance Co grew its position in Illinois Tool Works by 24,530.0% in the 4th quarter. Auto Owners Insurance Co now owns 628,065 shares of the industrial products company’s stock valued at $15,469,000 after purchasing an additional 625,515 shares during the period. Renaissance Technologies LLC increased its stake in Illinois Tool Works by 442.5% during the 1st quarter. Renaissance Technologies LLC now owns 659,840 shares of the industrial products company’s stock valued at $171,750,000 after purchasing an additional 538,200 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Illinois Tool Works by 1,517.9% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 390,022 shares of the industrial products company’s stock worth $96,062,000 after buying an additional 365,915 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in Illinois Tool Works by 11.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,311,357 shares of the industrial products company’s stock worth $815,587,000 after buying an additional 353,056 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

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.