Illinois Tool Works Inc. (NYSE:ITW) Given Average Rating of "Reduce" by Analysts

Key Points

• Illinois Tool Works Inc. (ITW) has received an average analyst rating of "Reduce," with three sell ratings, eight holds, and one buy recommendation.
• The company recently announced an increase in its quarterly dividend to $1.61 per share, reflecting a 2.5% yield and up from the previous $1.50 dividend.
• Analysts forecast Illinois Tool Works will post an EPS of 10.39 for the current fiscal year, building on a recent quarterly earnings of $2.58 per share, exceeding estimates.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have received an average recommendation of "Reduce" from the twelve brokerages that are currently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $259.3333.

A number of equities research analysts have commented on the company. Stifel Nicolaus increased their price target on Illinois Tool Works from $255.00 to $261.00 and gave the company a "hold" rating in a research note on Thursday, July 31st. Evercore ISI decreased their price objective on shares of Illinois Tool Works from $252.00 to $249.00 and set an "underperform" rating for the company in a research report on Monday, May 19th. Wells Fargo & Company boosted their target price on shares of Illinois Tool Works from $235.00 to $250.00 and gave the stock an "underweight" rating in a research report on Thursday, July 31st. Citigroup raised their price target on shares of Illinois Tool Works from $254.00 to $265.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Finally, Truist Financial lowered shares of Illinois Tool Works from a "buy" rating to a "hold" rating and set a $283.00 price objective on the stock. in a report on Thursday, July 31st.

Insider Buying and Selling

In related news, Director David Byron Smith, Jr. purchased 872 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was bought at an average cost of $241.16 per share, with a total value of $210,291.52. Following the completion of the acquisition, the director owned 122,884 shares of the company's stock, valued at $29,634,705.44. The trade was a 0.71% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.88% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ITW. Frazier Financial Advisors LLC acquired a new position in Illinois Tool Works in the 2nd quarter valued at $25,000. Redwood Park Advisors LLC acquired a new stake in Illinois Tool Works in the 4th quarter valued at about $26,000. Ameriflex Group Inc. acquired a new position in shares of Illinois Tool Works during the 4th quarter worth approximately $26,000. von Borstel & Associates Inc. purchased a new stake in shares of Illinois Tool Works in the first quarter valued at approximately $26,000. Finally, SOA Wealth Advisors LLC. increased its holdings in shares of Illinois Tool Works by 90.9% in the second quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 50 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

Illinois Tool Works Trading Down 0.3%

NYSE ITW opened at $256.63 on Friday. Illinois Tool Works has a 52 week low of $214.66 and a 52 week high of $279.13. The company has a 50 day moving average price of $252.05 and a 200 day moving average price of $250.15. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40. The firm has a market cap of $74.81 billion, a PE ratio of 22.49, a price-to-earnings-growth ratio of 5.55 and a beta of 1.09.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The industrial products company reported $2.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.56 by $0.02. The business had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%. The business's quarterly revenue was up .6% on a year-over-year basis. During the same period in the prior year, the firm posted $2.54 earnings per share. As a group, sell-side analysts forecast that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 30th will be issued a dividend of $1.61 per share. This represents a $6.44 annualized dividend and a yield of 2.5%. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.50. The ex-dividend date of this dividend is Tuesday, September 30th. Illinois Tool Works's dividend payout ratio is 52.59%.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.

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