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

Key Points

• Illinois Tool Works Inc. (NYSE:ITW) has received a consensus rating of "Reduce" from twelve brokerage firms, with three sell ratings, eight holds, and one buy.
• The company's recent quarterly earnings surpassed expectations, reporting $2.58 EPS and revenue of $4.05 billion, an increase from the previous year.
• Illinois Tool Works announced a dividend increase to $1.61 per share, reflecting a 2.5% yield and a payout ratio of 52.59%.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) has earned an average rating of "Reduce" from the twelve ratings firms that are covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $260.6667.

A number of equities analysts have issued reports on the stock. Wells Fargo & Company raised their price target 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. UBS Group upped their price objective on Illinois Tool Works from $243.00 to $255.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Citigroup lifted their price target on Illinois Tool Works from $254.00 to $265.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Stifel Nicolaus increased their target price on Illinois Tool Works from $255.00 to $261.00 and gave the company a "hold" rating in a research report on Thursday, July 31st. Finally, Evercore ISI set a $265.00 price target on shares of Illinois Tool Works and gave the stock an "underperform" rating in a report on Tuesday, August 19th.

Illinois Tool Works Price Performance

Shares of ITW opened at $261.32 on Friday. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.59 and a quick ratio of 1.15. The company's fifty day moving average price is $261.42 and its 200-day moving average price is $250.80. Illinois Tool Works has a 1-year low of $214.66 and a 1-year high of $279.13. The firm has a market capitalization of $76.17 billion, a PE ratio of 22.90, a price-to-earnings-growth ratio of 5.56 and a beta of 1.10.

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 EPS for the quarter, topping analysts' consensus estimates of $2.56 by $0.02. The company had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $4.01 billion. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%.The firm's revenue was up .6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.54 EPS. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS. On average, equities research analysts predict that Illinois Tool Works will post 10.39 EPS for the current year.

Illinois Tool Works Increases Dividend

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

Insider Buying and Selling at Illinois Tool Works

In other news, CAO Randall J. Scheuneman sold 6,802 shares of Illinois Tool Works stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $265.08, for a total value of $1,803,074.16. Following the sale, the chief accounting officer directly owned 10,314 shares of the company's stock, valued at $2,734,035.12. The trade was a 39.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.88% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Illinois Tool Works

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in shares of Illinois Tool Works by 1.3% in the second quarter. Vanguard Group Inc. now owns 26,723,774 shares of the industrial products company's stock valued at $6,607,453,000 after buying an additional 335,955 shares during the last quarter. State Street Corp grew its stake in Illinois Tool Works by 0.9% during the 2nd quarter. State Street Corp now owns 12,476,310 shares of the industrial products company's stock valued at $3,103,167,000 after acquiring an additional 108,919 shares in the last quarter. Geode Capital Management LLC raised its holdings in Illinois Tool Works by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 6,765,540 shares of the industrial products company's stock valued at $1,670,246,000 after acquiring an additional 122,990 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in Illinois Tool Works by 12.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 3,797,055 shares of the industrial products company's stock worth $938,822,000 after purchasing an additional 415,982 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its holdings in shares of Illinois Tool Works by 2.3% during the 2nd quarter. Fisher Asset Management LLC now owns 3,595,146 shares of the industrial products company's stock worth $888,900,000 after purchasing an additional 80,527 shares during the last quarter. Institutional investors and hedge funds own 79.77% of the company's stock.

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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