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

Illinois Tool Works Inc. (NYSE:ITW) has earned an average recommendation of “Reduce” from the fourteen ratings firms that are covering the stock, Marketbeat.com reports. Five research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $274.3846.

A number of equities analysts have commented on the stock. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $253.00 price objective on shares of Illinois Tool Works in a report on Tuesday, February 3rd. Bank of America upgraded shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and raised their price target for the stock from $220.00 to $255.00 in a research report on Tuesday, November 18th. Wells Fargo & Company boosted their price objective on shares of Illinois Tool Works from $250.00 to $270.00 and gave the company an “underweight” rating in a research report on Wednesday, February 4th. JPMorgan Chase & Co. increased their price objective on shares of Illinois Tool Works from $275.00 to $310.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 4th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Wednesday, January 28th.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $290.08 on Tuesday. The stock has a market capitalization of $83.60 billion, a price-to-earnings ratio of 27.65, a PEG ratio of 15.56 and a beta of 1.15. Illinois Tool Works has a one year low of $214.66 and a one year high of $303.15. The company’s 50-day simple moving average is $269.75 and its 200-day simple moving average is $259.70. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21.

Illinois Tool Works (NYSE:ITW) last announced its quarterly earnings data 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. The firm had revenue of $4.09 billion for the quarter, compared to analysts’ expectations of $4.07 billion. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.Illinois Tool Works’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.54 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Equities analysts anticipate that Illinois Tool Works will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Dividend Announcement

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

Insider Buying and Selling at Illinois Tool Works

In other news, EVP Axel Beck sold 4,223 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the completion of the transaction, the executive vice president 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Ernest Scott Santi sold 167,345 shares of the stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total transaction of $48,685,680.85. Following the completion of the sale, the director directly 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 SEC filing for this sale provides additional information. 0.88% of the stock is owned by company insiders.

Hedge Funds Weigh In On Illinois Tool Works

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ITW. AE Wealth Management LLC raised its position in Illinois Tool Works by 128.4% in the third quarter. AE Wealth Management LLC now owns 9,128 shares of the industrial products company’s stock worth $2,380,000 after purchasing an additional 5,131 shares in the last quarter. Mediolanum International Funds Ltd grew its stake in shares of Illinois Tool Works by 10.4% in the 3rd quarter. Mediolanum International Funds Ltd now owns 103,161 shares of the industrial products company’s stock valued at $26,964,000 after purchasing an additional 9,738 shares during the period. Brendel Financial Advisors LLC raised its holdings in shares of Illinois Tool Works by 1,328.6% in the 3rd quarter. Brendel Financial Advisors LLC now owns 13,929 shares of the industrial products company’s stock worth $3,632,000 after buying an additional 12,954 shares in the last quarter. Madison Asset Management LLC lifted its position in shares of Illinois Tool Works by 411.8% during the 3rd quarter. Madison Asset Management LLC now owns 87,875 shares of the industrial products company’s stock worth $22,914,000 after buying an additional 70,704 shares during the period. Finally, Davis Capital Management acquired a new stake in Illinois Tool Works in the 3rd quarter valued at $1,162,000. 79.77% of the stock is owned by institutional investors.

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.