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

Key Points

• Analysts give Illinois Tool Works a consensus “Reduce” rating: Five rate the stock a sell, six recommend holding, and two recommend buying. The average 12-month price target is $281.25, below the reported share price of $287.63.
• ITW exceeded quarterly expectations, reporting $2.84 in EPS versus the $2.80 consensus and $4.30 billion in revenue, up 6.1% year over year. Full-year EPS guidance is $11.35–$11.55.
• The company raised its quarterly dividend to $1.72 per share, equivalent to $6.88 annually and a 2.4% yield. Institutional investors own 79.77% of outstanding shares, while insiders own 0.83%.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) has received an average recommendation of "Reduce" from the thirteen analysts that are presently covering the company, Marketbeat.com reports. Five research analysts have rated the stock with a sell recommendation, six have given a hold recommendation and two have given a buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $281.25.

ITW has been the topic of several recent analyst reports. Weiss Ratings raised shares of Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Citigroup reissued a "neutral" rating on shares of Illinois Tool Works in a report on Monday, July 13th. Wells Fargo & Company boosted their target price on shares of Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a research report on Monday, May 4th. The Goldman Sachs Group restated a "sell" rating and issued a $254.00 target price on shares of Illinois Tool Works in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. lifted their price target on Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th.

Illinois Tool Works Trading Down 1.1%

Shares of ITW opened at $287.63 on Tuesday. Illinois Tool Works has a one year low of $238.82 and a one year high of $303.15. The stock has a 50-day moving average price of $275.71 and a 200 day moving average price of $270.94. 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 company has a market capitalization of $81.92 billion, a P/E ratio of 26.08, a P/E/G ratio of 4.91 and a beta of 0.99.

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. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.The company had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. During the same period in the prior year, the company posted $2.58 EPS. Illinois Tool Works's quarterly revenue was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Sell-side analysts forecast that Illinois Tool Works will post 11.45 EPS for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $1.72 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a yield of 2.4%. 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%.

Insider Activity at Illinois Tool Works

In other news, Director Jennifer F. Scanlon acquired 806 shares of Illinois Tool Works stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the purchase, the director directly owned 1,652 shares of the company's stock, valued at $409,679.48. This trade represents a 95.27% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CAO Matteo C. Pigozzo sold 277 shares of Illinois Tool Works stock in a transaction 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 transaction, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at approximately $981,612.68. This represents a 7.55% 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 Inflows and Outflows

Large investors have recently modified their holdings of the business. Brighton Jones LLC boosted its holdings in shares of Illinois Tool Works by 5.3% in the 4th 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 raised its stake in Illinois Tool Works by 2.3% during the fourth 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 lifted its holdings in Illinois Tool Works by 20.6% in the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock worth $257,000 after acquiring an additional 177 shares during the last quarter. Sei Investments Co. boosted its stake in Illinois Tool Works by 22.0% in the second 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 during the period. Finally, Treasurer of the State of North Carolina grew its holdings in shares of Illinois Tool Works by 2.2% during the second 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 last quarter. 79.77% of the stock is currently owned by institutional investors.

About Illinois Tool Works

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.

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