Illinois Tool Works Inc. (NYSE:ITW) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts have a consensus “Reduce” rating on Illinois Tool Works, with five sell, six hold and two buy recommendations. The average 12-month price target is $281.25.
• ITW exceeded quarterly expectations, reporting $2.84 in EPS versus $2.80 expected and revenue of $4.30 billion versus $4.19 billion estimated; revenue increased 6.1% year over year.
• The company raised its quarterly dividend to $1.72 per share, equivalent to a $6.88 annualized payout and a 2.6% yield.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) has been given a consensus rating of "Reduce" by the thirteen research firms that are currently covering the stock, MarketBeat.com reports. Five equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and two have assigned a buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $281.25.

Several brokerages have recently issued reports on ITW. Truist Financial lifted their price objective on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a research note on Thursday, July 2nd. UBS Group restated a "neutral" rating and set a $300.00 target price on shares of Illinois Tool Works in a report on Wednesday, July 29th. Robert W. Baird lifted their price target on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Citigroup reaffirmed a "neutral" rating on shares of Illinois Tool Works in a report on Monday, July 13th. Finally, Weiss Ratings upgraded Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $268.08 on Friday. The business has a 50 day simple moving average of $280.06 and a 200 day simple moving average of $269.62. The company has a debt-to-equity ratio of 2.26, a current ratio of 1.11 and a quick ratio of 0.81. The firm has a market capitalization of $76.35 billion, a price-to-earnings ratio of 24.30, a price-to-earnings-growth ratio of 3.60 and a beta of 0.98. Illinois Tool Works has a 12-month low of $238.82 and a 12-month high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.80 by $0.04. The firm had revenue of $4.30 billion during 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%. Illinois Tool Works's revenue was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.58 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. On average, equities research analysts anticipate that Illinois Tool Works will post 11.43 EPS for the current year.

Illinois Tool Works Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $1.72 per share. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. This represents a $6.88 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, September 30th. Illinois Tool Works's dividend payout ratio (DPR) is currently 62.38%.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Ernest Santi sold 41,431 shares of the business's 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 sale, the director owned 266,288 shares in the company, valued at approximately $76,448,621.92. The trade was a 13.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Matteo Pigozzo sold 277 shares of the company'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 sale, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.83% of the company's stock.

Hedge Funds Weigh In On Illinois Tool Works

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC raised its position in Illinois Tool Works by 5.3% during the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock valued at $1,399,000 after buying an additional 277 shares during the period. Bison Wealth LLC boosted its position in Illinois Tool Works by 2.3% during the 4th quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after acquiring an additional 81 shares during the period. Sivia Capital Partners LLC grew its stake in Illinois Tool Works by 20.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock valued at $257,000 after acquiring an additional 177 shares in the last quarter. Sei Investments Co. grew its stake in Illinois Tool Works by 22.0% during the 2nd quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock valued at $26,401,000 after acquiring an additional 19,248 shares in the last quarter. Finally, Treasurer of the State of North Carolina increased its holdings in shares of Illinois Tool Works by 2.2% in the 2nd quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock valued at $33,845,000 after purchasing an additional 2,890 shares during the period. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

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.

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