Illinois Tool Works Inc. (NYSE:ITW) Given Consensus Recommendation of “Reduce” by Analysts

Illinois Tool Works Inc. (NYSE:ITW) has earned a consensus recommendation of “Reduce” from the thirteen analysts that are presently covering the stock, MarketBeat.com reports. Five equities research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $281.25.

A number of research firms have recently commented on ITW. Truist Financial increased their target price on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a “hold” rating in a report on Thursday, July 2nd. UBS Group reiterated a “neutral” rating and set a $300.00 price objective on shares of Illinois Tool Works in a research report on Wednesday, July 29th. Wells Fargo & Company increased their price objective on shares of Illinois Tool Works from $245.00 to $255.00 and gave the company an “underweight” rating in a research note on Monday, May 4th. The Goldman Sachs Group restated a “sell” rating and issued a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. Finally, Robert W. Baird increased their price target on Illinois Tool Works from $278.00 to $297.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th.

Insider Buying and Selling at Illinois Tool Works

In other news, Director Ernest Scott Santi sold 41,431 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the transaction, the director owned 266,288 shares of the company’s stock, valued at $76,448,621.92. This represents a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Jennifer F. Scanlon acquired 806 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was acquired at an average price of $247.99 per share, with a total value of $199,879.94. Following the acquisition, the director owned 1,652 shares in the company, valued at $409,679.48. The trade was a 95.27% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.83% of the company’s stock.

Hedge Funds Weigh In On Illinois Tool Works

Several large investors have recently modified their holdings of ITW. California State Teachers Retirement System grew its stake in shares of Illinois Tool Works by 23,625.6% in the second quarter. California State Teachers Retirement System now owns 109,530,343 shares of the industrial products company’s stock worth $29,624,672,000 after purchasing an additional 109,068,689 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Illinois Tool Works by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 26,887,218 shares of the industrial products company’s stock worth $6,622,322,000 after buying an additional 189,229 shares during the period. BlackRock Inc. acquired a new position in Illinois Tool Works during the 2nd quarter worth about $6,296,349,000. State Street Corp grew its position in shares of Illinois Tool Works by 1.2% in the 4th quarter. State Street Corp now owns 12,596,511 shares of the industrial products company’s stock valued at $3,122,535,000 after buying an additional 151,864 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Illinois Tool Works by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 6,944,651 shares of the industrial products company’s stock valued at $1,709,734,000 after buying an additional 184,301 shares during the period. Institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $283.97 on Tuesday. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. Illinois Tool Works has a 52 week low of $238.82 and a 52 week high of $303.15. The stock has a market capitalization of $80.88 billion, a P/E ratio of 25.75, a price-to-earnings-growth ratio of 4.77 and a beta of 0.99. The stock has a fifty day moving average of $278.43 and a 200-day moving average of $271.59.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.The business had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. During the same period last year, the firm posted $2.58 earnings per share. Illinois Tool Works’s revenue was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. On average, sell-side analysts expect that Illinois Tool Works will post 11.45 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be issued a $1.72 dividend. This represents a $6.88 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a boost from Illinois Tool Works’s previous quarterly dividend of $1.61. Illinois Tool Works’s payout ratio is currently 58.39%.

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.