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

Illinois Tool Works Inc. (NYSE:ITW) has received a consensus recommendation of “Reduce” from the thirteen research firms that are presently covering the company, Marketbeat.com reports. Five equities research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $281.25.

ITW has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. raised their target price on Illinois Tool Works from $310.00 to $350.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Wolfe Research reaffirmed an “underperform” rating and issued a $286.00 price target on shares of Illinois Tool Works in a research note on Thursday, July 9th. Citigroup reissued a “neutral” rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Weiss Ratings upgraded shares of Illinois Tool Works from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Finally, Truist Financial upped their target price on shares of Illinois Tool Works from $280.00 to $301.00 and gave the company a “hold” rating in a research note on Thursday, July 2nd.

Insider Activity

In other news, Director Ernest Santi sold 41,431 shares of Illinois Tool Works stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $287.09, for a total transaction of $11,894,425.79. Following the transaction, the director owned 266,288 shares in the company, valued at $76,448,621.92. The trade was a 13.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Matteo C. Pigozzo sold 277 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $289.22, for a total value of $80,113.94. Following the sale, the chief accounting officer directly owned 3,394 shares of the company’s stock, valued at approximately $981,612.68. The trade was a 7.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.83% of the company’s stock.

Institutional Investors Weigh In On Illinois Tool Works

Large investors have recently made changes to their positions in the stock. Security National Bank of Sioux City Iowa IA raised its stake in shares of Illinois Tool Works by 26.5% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 6,006 shares of the industrial products company’s stock valued at $1,624,000 after purchasing an additional 1,259 shares during the period. Anchor Investment Management LLC boosted its position in Illinois Tool Works by 2.5% during the 2nd quarter. Anchor Investment Management LLC now owns 4,682 shares of the industrial products company’s stock worth $1,266,000 after acquiring an additional 113 shares during the last quarter. Sequoia Financial Advisors LLC grew its stake in shares of Illinois Tool Works by 0.6% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 11,217 shares of the industrial products company’s stock worth $3,034,000 after acquiring an additional 65 shares in the last quarter. MCF Advisors LLC raised its holdings in shares of Illinois Tool Works by 2.1% in the second quarter. MCF Advisors LLC now owns 2,281 shares of the industrial products company’s stock valued at $620,000 after purchasing an additional 48 shares during the last quarter. Finally, National Pension Service lifted its position in shares of Illinois Tool Works by 2.5% in the second quarter. National Pension Service now owns 733,107 shares of the industrial products company’s stock worth $198,283,000 after purchasing an additional 17,921 shares in the last quarter. Institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Stock Up 0.7%

NYSE:ITW opened at $269.44 on Friday. The company has a market cap of $76.74 billion, a price-to-earnings ratio of 24.43, a P/E/G ratio of 2.86 and a beta of 0.98. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. The stock’s fifty day moving average price is $280.00 and its two-hundred day moving average price is $268.81. 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 issued its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, beating 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 net margin of 19.39% and a return on equity of 101.72%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $2.58 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. On average, analysts anticipate that Illinois Tool Works will post 11.43 EPS for the current year.

Illinois Tool Works Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 30th will be paid a dividend of $1.72 per share. This represents a $6.88 annualized dividend and a yield of 2.6%. 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 dividend payout ratio (DPR) is 58.39%.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (NYSE: ITW) is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and related solutions for businesses worldwide. Its products are used across industries including automotive, food service, construction, electronics, welding and general manufacturing.

The company operates through several business segments, including Automotive, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products.