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

Key Points

• Illinois Tool Works Inc. has received an average recommendation of "Reduce" from analysts, with three sell ratings, eight hold ratings, and one buy rating, as per Marketbeat Ratings.
• The company has declared a quarterly dividend of $1.61 per share, increasing from the previous $1.50, representing an annualized dividend yield of 2.4%.
• For the recent quarter, Illinois Tool Works reported earnings of $2.58 per share and revenue of $4.05 billion, exceeding analysts' expectations, while guiding for FY 2025 EPS between 10.350-10.550.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have been given a consensus rating of "Reduce" by the twelve research firms that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and one has assigned a buy rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $260.6667.

Several research firms have recently commented on ITW. Stifel Nicolaus upped their target price on Illinois Tool Works from $255.00 to $261.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Truist Financial lowered Illinois Tool Works from a "buy" rating to a "hold" rating and set a $283.00 target price for the company. in a report on Thursday, July 31st. Evercore ISI set a $265.00 target price on shares of Illinois Tool Works and gave the stock an "underperform" rating in a research report on Tuesday, August 19th. Barclays raised their price target on Illinois Tool Works from $240.00 to $243.00 and gave the company an "equal weight" rating in a research report on Monday, August 4th. Finally, Citigroup increased their target price on shares of Illinois Tool Works from $254.00 to $265.00 and gave the company a "neutral" rating in a research note on Monday, July 14th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ITW. Frazier Financial Advisors LLC bought a new position in Illinois Tool Works in the 2nd quarter valued at approximately $25,000. Ameriflex Group Inc. acquired a new stake in shares of Illinois Tool Works during the fourth quarter worth $26,000. von Borstel & Associates Inc. acquired a new stake in shares of Illinois Tool Works during the first quarter worth $26,000. SOA Wealth Advisors LLC. increased its position in shares of Illinois Tool Works by 90.9% during the second quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company's stock worth $26,000 after buying an additional 50 shares during the period. Finally, Saudi Central Bank acquired a new stake in shares of Illinois Tool Works during the first quarter worth $29,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Illinois Tool Works Trading Down 0.5%

ITW traded down $1.29 during mid-day trading on Tuesday, hitting $260.97. 719,142 shares of the stock were exchanged, compared to its average volume of 867,097. Illinois Tool Works has a 1-year low of $214.66 and a 1-year high of $279.13. The company has a market cap of $76.07 billion, a PE ratio of 22.87, a PEG ratio of 5.71 and a beta of 1.10. The company has a current ratio of 1.59, a quick ratio of 1.15 and a debt-to-equity ratio of 2.40. The firm's fifty day moving average is $258.74 and its two-hundred day moving average is $250.72.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The industrial products company reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.56 by $0.02. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%.The firm had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $4.01 billion. During the same period in the previous year, the firm posted $2.54 earnings per share. Illinois Tool Works's revenue was up .6% on a year-over-year basis. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS. Equities analysts forecast that Illinois Tool Works will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

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

Illinois Tool Works Company Profile

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.