Illinois Tool Works Inc. (ITW) Lowered to Sell at Zacks Investment Research
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.”
ITW has been the subject of a number of other reports. Robert W. Baird lowered 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. Deutsche Bank AG lifted their target price on Illinois Tool Works from $119.00 to $128.00 and gave the company a buy rating in a report on Friday, July 15th. RBC Capital Markets reiterated a sector perform rating and issued a $104.00 target price (up from $101.00) on shares of Illinois Tool Works in a report on Sunday, July 24th. Oppenheimer Holdings Inc. restated a buy rating on shares of Illinois Tool Works in a research note on Tuesday, June 7th. Finally, Royal Bank Of Canada raised their price target on Illinois Tool Works from $101.00 to $104.00 and gave the company a sector perform rating in a research note on Thursday, July 21st. One analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $108.43.
Illinois Tool Works (NYSE:ITW) traded up 0.02% during trading on Wednesday, reaching $119.29. The company had a trading volume of 427,654 shares. The company’s 50-day moving average is $118.84 and its 200 day moving average is $110.10. The firm has a market capitalization of $42.34 billion, a price-to-earnings ratio of 22.21 and a beta of 1.11. Illinois Tool Works has a 52 week low of $79.15 and a 52 week high of $123.50.
Illinois Tool Works (NYSE:ITW) last released its earnings results on Wednesday, July 20th. The company reported $1.46 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.40 by $0.06. The firm earned $3.43 billion during the quarter, compared to analyst estimates of $3.41 billion. Illinois Tool Works had a return on equity of 38.15% and a net margin of 14.65%. Illinois Tool Works’s revenue was down .1% compared to the same quarter last year. During the same period last year, the business posted $1.30 earnings per share. Equities analysts anticipate that Illinois Tool Works will post $5.63 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 6th. Stockholders of record on Friday, September 30th will be issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 2.18%. This is an increase from Illinois Tool Works’s previous quarterly dividend of $0.55. The ex-dividend date of this dividend is Wednesday, September 28th. Illinois Tool Works’s dividend payout ratio is presently 48.42%.
In related news, CEO Ernest Scott Santi sold 74,077 shares of the company’s stock in a transaction 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 completion of the sale, the chief executive officer now directly owns 75,926 shares of the company’s stock, valued at approximately $8,673,786.24. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Sundaram Nagarajan sold 4,560 shares of the company’s stock in a transaction on Wednesday, September 7th. The stock was sold at an average price of $119.50, for a total transaction of $544,920.00. Following the sale, the insider now directly owns 24,777 shares of the company’s stock, valued at $2,960,851.50. The disclosure for this sale can be found here. Insiders own 0.80% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new stake in shares of Illinois Tool Works during the first quarter worth $55,010,000. PGGM Investments boosted its stake in shares of Illinois Tool Works by 10.0% in the second quarter. PGGM Investments now owns 293,306 shares of the company’s stock worth $30,551,000 after buying an additional 26,733 shares during the period. British Airways Pensions Investment Management Ltd boosted its stake in shares of Illinois Tool Works by 20.2% in the second quarter. British Airways Pensions Investment Management Ltd now owns 349,270 shares of the company’s stock worth $36,524,000 after buying an additional 58,630 shares during the period. Silvercrest Asset Management Group LLC boosted its stake in shares of Illinois Tool Works by 4.0% in the first quarter. Silvercrest Asset Management Group LLC now owns 8,288 shares of the company’s stock worth $849,000 after buying an additional 317 shares during the period. Finally, Confluence Investment Management LLC boosted its stake in shares of Illinois Tool Works by 1.1% in the second quarter. Confluence Investment Management LLC now owns 294,246 shares of the company’s stock worth $30,649,000 after buying an additional 3,141 shares during the period. 74.90% of the stock is 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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