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

Key Points

• JPMorgan downgraded Illinois Tool Works to “Neutral” from “Overweight” and set a $270 price target, implying approximately 2% upside from the prior close.
• Analyst sentiment remains cautious: ITW has an average “Reduce” rating, with one Buy, seven Hold, and five Sell ratings, and a consensus price target of $273.42.
• Despite the downgrade, Illinois Tool Works exceeded quarterly expectations, reporting $2.84 in adjusted earnings per share versus the $2.80 consensus and revenue of $4.30 billion versus $4.19 billion expected.

Illinois Tool Works (NYSE:ITW - Get Free Report) was downgraded by equities researchers at JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a research report issued to clients and investors on Friday, Marketbeat.com reports. They presently have a $270.00 price objective on the industrial products company's stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 2.04% from the company's previous close.

Several other research analysts have also weighed in on the stock. Robert W. Baird boosted their price objective on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Wolfe Research reissued an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a research report on Thursday, July 9th. Citigroup restated a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Weiss Ratings upgraded Illinois Tool Works from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, September 28th. Finally, Truist Financial decreased their target price on Illinois Tool Works from $308.00 to $297.00 and set a "hold" rating on the stock in a report on Monday. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, Illinois Tool Works currently has an average rating of "Reduce" and a consensus price target of $273.42.

Illinois Tool Works Trading Up 1.3%

Shares of Illinois Tool Works stock opened at $264.60 on Friday. The stock has a market cap of $75.36 billion, a P/E ratio of 23.99, a P/E/G ratio of 2.82 and a beta of 0.96. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. Illinois Tool Works has a 12-month low of $238.82 and a 12-month high of $303.15. The business's 50 day moving average is $276.54 and its 200-day moving average is $268.20.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results 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. The business had revenue of $4.30 billion during the quarter, compared to analysts' expectations of $4.19 billion. Illinois Tool Works had a net margin of 19.39% and a return on equity of 101.72%. The firm's revenue was up 6.1% on a year-over-year basis. During the same period last year, the business earned $2.58 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Equities research analysts predict that Illinois Tool Works will post 11.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Matteo Pigozzo sold 277 shares of Illinois Tool Works stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the sale, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at approximately $981,612.68. This trade represents a 7.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Ernest Santi sold 41,431 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Illinois Tool Works

A number of hedge funds have recently bought and sold shares of the business. Continuum Advisory LLC acquired a new position in shares of Illinois Tool Works during the 2nd quarter worth approximately $29,000. Abound Wealth Management raised its position in shares of Illinois Tool Works by 178.6% in the second quarter. Abound Wealth Management now owns 117 shares of the industrial products company's stock valued at $32,000 after buying an additional 75 shares in the last quarter. Wilkerson Advisory Group LLC boosted its stake in shares of Illinois Tool Works by 77.6% in the first quarter. Wilkerson Advisory Group LLC now owns 119 shares of the industrial products company's stock valued at $31,000 after buying an additional 52 shares during the period. Tacita Capital Inc acquired a new stake in Illinois Tool Works during the second quarter worth approximately $32,000. Finally, Meeder Asset Management Inc. bought a new position in Illinois Tool Works during the 2nd quarter worth $33,000. 79.77% of the stock is owned by institutional investors.

Illinois Tool Works Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.