Illinois Tool Works Inc. (NYSE:ITW) Stock Has Average Price Target of $282.00

Key Points

• Analyst sentiment is bearish: Thirteen brokerages give Illinois Tool Works an average “Reduce” rating, with five sells, six holds, and two buys. The average 12-month price target is $282, modestly above the reported $266.94 opening price.
• ITW exceeded quarterly expectations, reporting $2.84 in EPS and $4.30 billion in revenue, while revenue rose 6.1% year over year. The company’s FY 2026 EPS guidance is $11.35–$11.55.
• The quarterly dividend increased to $1.72 per share from $1.61, implying an annualized dividend of $6.88 and a 2.6% yield. Recent insider activity was negative, with executives and directors selling shares, while institutional investors own 79.77% of the stock.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have been assigned an average rating of "Reduce" from the thirteen brokerages that are presently covering the stock, Marketbeat reports. Five investment analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and two have given a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $282.00.

Several analysts recently commented on ITW shares. Truist Financial cut their price objective on Illinois Tool Works from $308.00 to $297.00 and set a "hold" rating for the company in a report on Monday. 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. JPMorgan Chase & Co. boosted their price target on Illinois Tool Works from $310.00 to $350.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Illinois Tool Works from $287.00 to $281.00 and set a "hold" rating on the stock in a report on Wednesday, September 30th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Illinois Tool Works in a report on Monday, July 13th.

Illinois Tool Works Stock Up 1.0%

ITW opened at $266.94 on Wednesday. Illinois Tool Works has a twelve month low of $238.82 and a twelve month high of $303.15. 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 has a 50 day moving average price of $277.56 and a 200-day moving average price of $268.15. The stock has a market capitalization of $76.03 billion, a price-to-earnings ratio of 24.20, a PEG ratio of 2.85 and a beta of 0.96.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.80 by $0.04. The business had revenue of $4.30 billion during the quarter, compared to the consensus estimate 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 quarter in the previous year, the firm posted $2.58 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Equities research analysts forecast that Illinois Tool Works will post 11.44 earnings per share for the current year.

Illinois Tool Works Increases Dividend

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

Insiders Place Their Bets

In other Illinois Tool Works news, CAO Matteo C. Pigozzo sold 277 shares of the company's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $289.22, for a total value of $80,113.94. Following the completion of the sale, the chief accounting officer owned 3,394 shares in the company, valued at $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Ernest Santi sold 41,431 shares of the firm's stock in a transaction dated 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 directly owned 266,288 shares in the company, valued at $76,448,621.92. This trade represents a 13.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Illinois Tool Works

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Winnow Wealth LLC grew its holdings in shares of Illinois Tool Works by 1.0% during the fourth quarter. Winnow Wealth LLC now owns 3,809 shares of the industrial products company's stock worth $941,000 after buying an additional 37 shares in the last quarter. Crown Wealth Group LLC grew its stake in Illinois Tool Works by 4.0% during the 1st quarter. Crown Wealth Group LLC now owns 953 shares of the industrial products company's stock valued at $248,000 after acquiring an additional 37 shares in the last quarter. Argos Wealth Advisors LLC lifted its stake in Illinois Tool Works by 2.6% in the 1st quarter. Argos Wealth Advisors LLC now owns 1,526 shares of the industrial products company's stock worth $397,000 after purchasing an additional 39 shares in the last quarter. JFS Wealth Advisors LLC boosted its holdings in shares of Illinois Tool Works by 21.5% during the 2nd quarter. JFS Wealth Advisors LLC now owns 226 shares of the industrial products company's stock worth $61,000 after purchasing an additional 40 shares during the last quarter. Finally, North Star Investment Management Corp. increased its holdings in shares of Illinois Tool Works by 0.5% in the first 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 during 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.

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