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

Key Points

• Illinois Tool Works has a consensus analyst rating of "Reduce" from 13 brokerages, with five sell ratings, six holds, and two buys. The average 12-month price target is about $270.46.
• The company recently reported Q1 earnings of $2.66 per share, beating estimates and rising from $2.38 a year earlier, while revenue came in at $4.02 billion, slightly above expectations. ITW also raised its FY 2026 EPS guidance to 11.10-11.50.
• Illinois Tool Works paid a quarterly dividend of $1.61 per share, or $6.44 annually, which implies a 2.5% yield. Institutional investors continue to hold the majority of shares, with about 79.77% ownership.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the thirteen brokerages that are presently covering the firm, Marketbeat Ratings reports. Five research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and two have given a buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $270.4615.

ITW has been the topic of a number of recent analyst reports. Citigroup raised their price target on Illinois Tool Works from $284.00 to $287.00 and gave the company a "neutral" rating in a report on Monday, May 4th. Wolfe Research upped their price objective on Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a research note on Friday, February 27th. Barclays cut their target price on Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating for the company in a research report on Wednesday, April 1st. Wells Fargo & Company boosted their price target on Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a report on Monday, May 4th. Finally, Robert W. Baird set a $278.00 price target on Illinois Tool Works in a research note on Wednesday, February 4th.

Institutional Trading of Illinois Tool Works

Institutional investors and hedge funds have recently bought and sold shares of the stock. Meridian Wealth Management LLC grew its position in shares of Illinois Tool Works by 1.3% during the fourth quarter. Meridian Wealth Management LLC now owns 2,818 shares of the industrial products company's stock valued at $694,000 after purchasing an additional 37 shares in the last quarter. Winnow Wealth LLC lifted its position in shares of Illinois Tool Works by 1.0% in the fourth quarter. Winnow Wealth LLC now owns 3,809 shares of the industrial products company's stock worth $941,000 after buying an additional 37 shares in the last quarter. Crown Wealth Group LLC lifted its position in shares of Illinois Tool Works by 4.0% in the first quarter. Crown Wealth Group LLC now owns 953 shares of the industrial products company's stock worth $248,000 after buying an additional 37 shares in the last quarter. Mayflower Financial Advisors LLC boosted its stake in Illinois Tool Works by 3.8% during the fourth quarter. Mayflower Financial Advisors LLC now owns 1,065 shares of the industrial products company's stock valued at $262,000 after buying an additional 39 shares during the last quarter. Finally, Revisor Wealth Management LLC grew its holdings in Illinois Tool Works by 1.4% during the 4th quarter. Revisor Wealth Management LLC now owns 2,841 shares of the industrial products company's stock valued at $734,000 after buying an additional 39 shares in the last quarter. 79.77% of the stock is currently owned by institutional investors.

Illinois Tool Works Stock Performance

ITW opened at $254.54 on Friday. The company has a 50 day simple moving average of $268.73 and a two-hundred day simple moving average of $262.06. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.19 and a quick ratio of 0.86. The firm has a market cap of $73.33 billion, a P/E ratio of 23.63, a PEG ratio of 4.38 and a beta of 1.04. Illinois Tool Works has a 1-year low of $238.82 and a 1-year high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, beating the consensus estimate of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The firm had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period last year, the firm earned $2.38 EPS. The company's revenue was up 4.6% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. Equities analysts forecast that Illinois Tool Works will post 11.36 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Tuesday, March 31st were given a dividend of $1.61 per share. The ex-dividend date was Tuesday, March 31st. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.5%. Illinois Tool Works's dividend payout ratio is currently 59.80%.

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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