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

Key Points

• Illinois Tool Works Inc. received a consensus rating of "Reduce" from thirteen brokerages, with three analysts recommending a sell, eight a hold, and two a buy.
• The company recently increased its quarterly dividend from $1.50 to $1.61 per share, reflecting a 2.5% yield and a payout ratio of 56.44%.
• Shares of Illinois Tool Works opened at $257.17, with a 12-month price range between $214.66 and $279.13.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have earned a consensus recommendation of "Reduce" from the thirteen brokerages that are presently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and two have given a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $262.8333.

Several brokerages have recently issued reports on ITW. Wells Fargo & Company lifted their target price on Illinois Tool Works from $235.00 to $250.00 and gave the stock an "underweight" rating in a report on Thursday, July 31st. UBS Group boosted their price objective on Illinois Tool Works from $243.00 to $255.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st. Truist Financial boosted their price objective on Illinois Tool Works from $283.00 to $298.00 and gave the stock a "hold" rating in a research note on Wednesday, October 8th. Weiss Ratings reissued a "buy (b)" rating on shares of Illinois Tool Works in a research note on Wednesday, October 8th. Finally, Stifel Nicolaus boosted their price objective on Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st.

Insiders Place Their Bets

In other Illinois Tool Works news, CAO Randall J. Scheuneman sold 6,802 shares of the business's stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $265.08, for a total transaction of $1,803,074.16. Following the completion of the transaction, the chief accounting officer owned 10,314 shares in the company, 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 filing with the Securities & Exchange Commission, which is available at this link. 0.88% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of Illinois Tool Works by 1.3% during 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 period. State Street Corp boosted its position in shares of Illinois Tool Works by 0.9% during the second quarter. State Street Corp now owns 12,476,310 shares of the industrial products company's stock valued at $3,103,167,000 after buying an additional 108,919 shares during the period. Geode Capital Management LLC boosted its position in shares of Illinois Tool Works by 1.9% during the second 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 buying an additional 122,990 shares during the period. Massachusetts Financial Services Co. MA boosted its position in shares of Illinois Tool Works by 12.3% during the second quarter. Massachusetts Financial Services Co. MA now owns 3,797,055 shares of the industrial products company's stock valued at $938,822,000 after buying an additional 415,982 shares during the period. Finally, Fisher Asset Management LLC boosted its position in shares of Illinois Tool Works by 2.3% during the second quarter. Fisher Asset Management LLC now owns 3,595,146 shares of the industrial products company's stock valued at $888,900,000 after buying an additional 80,527 shares during the period. Hedge funds and other institutional investors own 79.77% of the company's stock.

Illinois Tool Works Trading Up 1.9%

Shares of ITW stock opened at $257.17 on Wednesday. Illinois Tool Works has a 12-month low of $214.66 and a 12-month high of $279.13. 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 stock's 50-day moving average price is $260.00 and its 200-day moving average price is $251.17. The stock has a market capitalization of $74.96 billion, a price-to-earnings ratio of 22.54, a price-to-earnings-growth ratio of 5.58 and a beta of 1.10.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its earnings results 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 for 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. The business's revenue was up .6% compared to the same quarter last year. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS. Equities research analysts predict that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th were paid a dividend of $1.61 per share. The ex-dividend date of this dividend was Tuesday, September 30th. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.50. This represents a $6.44 annualized dividend and a yield of 2.5%. Illinois Tool Works's payout ratio is presently 56.44%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.