Illinois Tool Works Inc. (NYSE:ITW) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
According to Zacks, “We believe that positive impacts from Illinois Tool's organic and inorganic growth tactics, its long-term Enterprise Strategy and sound capital allocation schemes are more than offset by risks arising from near-term headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties. For 2016, the company predicts organic revenue to grow 1-2%, down from the previous expectations, given the difficult operating conditions in the Welding segment.”
Several other equities analysts have also weighed in on the stock. Deutsche Bank AG restated a “buy” rating and set a $102.00 price objective on shares of Illinois Tool Works in a research report on Thursday, August 25th. RBC Capital Markets restated a “sector perform” rating and set a $104.00 price objective (up previously from $101.00) on shares of Illinois Tool Works in a research report on Sunday, July 24th. Credit Suisse Group AG set a $114.00 price objective on shares of Illinois Tool Works and gave the company a “hold” rating in a research report on Thursday, July 21st. Royal Bank Of Canada raised their price objective on shares of Illinois Tool Works from $101.00 to $104.00 and gave the company a “sector perform” rating in a research report on Thursday, July 21st. Finally, Robert W. Baird cut shares of Illinois Tool Works from an “outperform” rating to a “neutral” rating and set a $108.00 target price for the company. in a report on Thursday, June 23rd. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and seven have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $108.43.
Shares of Illinois Tool Works (NYSE:ITW) opened at 119.56 on Wednesday. The stock has a market capitalization of $42.44 billion, a P/E ratio of 22.26 and a beta of 1.11. The firm’s 50-day moving average is $118.85 and its 200 day moving average is $110.17. Illinois Tool Works has a 1-year low of $79.15 and a 1-year high of $123.50.
Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Wednesday, July 20th. The company reported $1.46 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.40 by $0.06. Illinois Tool Works had a net margin of 14.65% and a return on equity of 38.15%. The company earned $3.43 billion during the quarter, compared to analyst estimates of $3.41 billion. During the same quarter last year, the firm posted $1.30 EPS. The business’s revenue for the quarter was down .1% on a year-over-year basis. On average, analysts expect that Illinois Tool Works will post $5.62 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 6th. Investors of record on Friday, September 30th were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 2.17%. The ex-dividend date was Wednesday, September 28th. This is a positive change from Illinois Tool Works’s previous quarterly dividend of $0.55. Illinois Tool Works’s dividend payout ratio (DPR) is presently 48.42%.
In related news, CEO Ernest Scott Santi sold 74,077 shares of the firm’s stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $114.24, for a total transaction of $8,462,556.48. Following the transaction, the chief executive officer now owns 75,926 shares of the company’s stock, valued at $8,673,786.24. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Michael M. Larsen sold 14,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 21st. The shares were sold at an average price of $113.99, for a total transaction of $1,595,860.00. The disclosure for this sale can be found here. Corporate insiders own 0.80% of the company’s stock.
A number of institutional investors have recently modified their holdings of ITW. Ameriprise Financial Inc. raised its position in shares of Illinois Tool Works by 68.3% in the second quarter. Ameriprise Financial Inc. now owns 2,847,563 shares of the company’s stock valued at $296,644,000 after buying an additional 1,155,191 shares during the last quarter. FMR LLC raised its position in shares of Illinois Tool Works by 51.4% in the second quarter. FMR LLC now owns 3,111,178 shares of the company’s stock valued at $324,061,000 after buying an additional 1,055,623 shares during the last quarter. Bank of Montreal Can acquired a new position in shares of Illinois Tool Works during the second quarter valued at $106,575,000. Renaissance Technologies LLC acquired a new position in shares of Illinois Tool Works during the first quarter valued at $55,010,000. Finally, Credit Agricole S A raised its position in shares of Illinois Tool Works by 181.0% in the first quarter. Credit Agricole S A now owns 546,890 shares of the company’s stock valued at $56,024,000 after buying an additional 352,273 shares during the last quarter. 74.90% of the stock is currently owned by hedge funds and other institutional investors.
About Illinois Tool Works
Illinois Tool Works Inc (ITW) is a manufacturer of a range of industrial products and equipment. The Company operates through seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products and Specialty Products. It produces components and fasteners for automotive-related applications; equipment, consumables and related software for testing and measuring of materials and structures, and equipment and consumables used in the production of electronic subassemblies and microelectronics; adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance; arc welding equipment, consumables and accessories for a range of industrial and commercial applications, and beverage packaging equipment and consumables, product coding and marking equipment, and consumables, and appliance components and fasteners.
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