Illinois Tool Works (NYSE:ITW) Cut to “Neutral” at JPMorgan Chase & Co.

JPMorgan Chase & Co. downgraded shares of Illinois Tool Works (NYSE:ITW) from an overweight rating to a neutral rating in a report released on Friday morning, Marketbeat.com reports. The brokerage currently has $270.00 price objective on the industrial products company’s stock, down from their previous price objective of $350.00.

Other equities research analysts also recently issued research reports about the company. Truist Financial reduced their target price on Illinois Tool Works from $308.00 to $297.00 and set a “hold” rating for the company in a report on Monday, October 5th. Robert W. Baird increased their target price on Illinois Tool Works from $278.00 to $297.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Citigroup restated a “neutral” rating on shares of Illinois Tool Works in a report on Monday, July 13th. Wolfe Research restated an “underperform” rating and set a $286.00 price objective on shares of Illinois Tool Works in a report on Thursday, July 9th. Finally, Weiss Ratings upgraded shares of Illinois Tool Works from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday, September 28th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, Illinois Tool Works currently has an average rating of “Reduce” and an average target price of $273.42.

Illinois Tool Works Stock Performance

Shares of Illinois Tool Works stock opened at $263.94 on Friday. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. The firm’s 50 day moving average is $276.07 and its two-hundred day moving average is $268.21. The firm has a market capitalization of $75.17 billion, a P/E ratio of 23.93, a P/E/G ratio of 2.85 and a beta of 0.96. Illinois Tool Works has a 52 week low of $238.82 and a 52 week high of $303.15.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $2.84 EPS for the quarter, topping the consensus estimate of $2.80 by $0.04. The company had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%. The firm’s revenue was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.58 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Research analysts forecast that Illinois Tool Works will post 11.44 EPS for the current fiscal year.

Illinois Tool Works Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were paid a $1.72 dividend. The ex-dividend date was Wednesday, September 30th. This is an increase from Illinois Tool Works’s previous quarterly dividend of $1.61. This represents a $6.88 dividend on an annualized basis and a yield of 2.6%. Illinois Tool Works’s payout ratio is presently 62.38%.

Insider Activity

In other Illinois Tool Works news, CAO Matteo Pigozzo sold 277 shares of the business’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the transaction, the chief accounting officer directly owned 3,394 shares of the company’s stock, valued at $981,612.68. The trade was a 7.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Ernest Santi sold 41,431 shares of the business’s stock in a transaction 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 transaction, the director owned 266,288 shares of the company’s stock, valued at $76,448,621.92. This trade represents a 13.46% decrease in their position. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Illinois Tool Works

A number of hedge funds have recently bought and sold shares of ITW. Crown Wealth Group LLC raised its stake in Illinois Tool Works by 4.0% during the first quarter. Crown Wealth Group LLC now owns 953 shares of the industrial products company’s stock worth $248,000 after acquiring an additional 37 shares in the last quarter. Argos Wealth Advisors LLC lifted its holdings in shares of Illinois Tool Works by 2.6% during the first quarter. Argos Wealth Advisors LLC now owns 1,526 shares of the industrial products company’s stock valued at $397,000 after acquiring an additional 39 shares during the period. JFS Wealth Advisors LLC boosted its stake in shares of Illinois Tool Works by 21.5% in the 2nd quarter. JFS Wealth Advisors LLC now owns 226 shares of the industrial products company’s stock valued at $61,000 after purchasing an additional 40 shares in the last quarter. North Star Investment Management Corp. boosted its stake in shares of Illinois Tool Works by 0.5% in the 1st quarter. North Star Investment Management Corp. now owns 8,191 shares of the industrial products company’s stock valued at $2,132,000 after purchasing an additional 44 shares in the last quarter. Finally, Bell Investment Advisors Inc boosted its stake in shares of Illinois Tool Works by 4.2% in the 1st quarter. Bell Investment Advisors Inc now owns 1,111 shares of the industrial products company’s stock valued at $289,000 after purchasing an additional 45 shares in the last quarter. 79.77% of the stock is owned by hedge funds and other institutional investors.

About Illinois Tool Works

Illinois Tool Works Inc (NYSE: ITW) is a diversified industrial manufacturer that develops and produces engineered products and systems for customers worldwide. The company serves a broad range of end markets, including automotive, construction, food service, welding, electronics, and general industry.

ITW’s product portfolio includes automotive components and fasteners, commercial food equipment, welding equipment and consumables, test and measurement instruments, electronic components, polymers and fluids, construction fastening systems, and other specialized industrial products.