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

Key Points

• Analysts are cautious on ITW: Illinois Tool Works has a consensus rating of “Reduce” from 13 brokerage firms, with five sell ratings, seven hold ratings, and only one buy. The average 12-month price target is about $271.92.
• Recent earnings beat expectations: The company reported $2.66 EPS for the quarter, topping estimates by $0.09, on revenue of $4.02 billion, slightly above forecasts. Revenue rose 4.6% year over year, and the company reaffirmed FY 2026 EPS guidance of 11.10–11.50.
• Shareholders are getting a dividend: Illinois Tool Works declared a quarterly dividend of $1.61 per share, payable July 10 to shareholders of record on June 30. That works out to an annualized dividend of $6.44 and a yield of about 2.4%.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have been assigned an average rating of "Reduce" from the thirteen research firms that are covering the company, MarketBeat reports. Five research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $271.9231.

A number of equities research analysts have commented on ITW shares. JPMorgan Chase & Co. decreased their price target on Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Evercore reduced their price objective on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Wells Fargo & Company lifted their price target on Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Weiss Ratings cut Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Finally, The Goldman Sachs Group reissued a "sell" rating and issued a $254.00 price objective on shares of Illinois Tool Works in a report on Thursday, April 30th.

Illinois Tool Works Price Performance

ITW opened at $268.13 on Monday. Illinois Tool Works has a 12-month low of $238.82 and a 12-month high of $303.15. The business's fifty day simple moving average is $257.99 and its 200-day simple moving average is $264.14. The company has a market capitalization of $77.14 billion, a price-to-earnings ratio of 24.90, a PEG ratio of 4.60 and a beta of 1.01. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, beating analysts' consensus estimates of $2.57 by $0.09. Illinois Tool Works had a return on equity of 97.36% and a net margin of 19.32%.The company had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter last year, the company earned $2.38 earnings per share. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, equities research analysts anticipate that Illinois Tool Works will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a $1.61 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works's payout ratio is currently 59.80%.

Insider Activity

In other news, Director Jennifer F. Scanlon purchased 806 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, with a total value of $199,879.94. Following the completion of the purchase, the director directly owned 1,652 shares of the company's stock, valued at approximately $409,679.48. The trade was a 95.27% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.83% of the stock is owned by corporate insiders.

Institutional Trading of Illinois Tool Works

A number of institutional investors have recently made changes to their positions in ITW. Brighton Jones LLC boosted its stake in Illinois Tool Works by 5.3% during the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after buying an additional 277 shares during the last quarter. Bison Wealth LLC boosted 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 buying an additional 81 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Illinois Tool Works by 20.6% during the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock worth $257,000 after buying an additional 177 shares during the last quarter. Sei Investments Co. boosted its stake in Illinois Tool Works by 22.0% during the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock worth $26,401,000 after buying an additional 19,248 shares during the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake in 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 worth $33,845,000 after buying an additional 2,890 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

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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