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

Key Points

• Analysts have a consensus recommendation of “Reduce” on Illinois Tool Works, with five sell ratings, seven hold ratings and one buy rating. The average 1-year price target is $274.
• The company recently beat quarterly expectations, reporting EPS of $2.66 versus $2.57 expected and revenue of $4.02 billion versus $4.01 billion expected. Revenue rose 4.6% year over year, and ITW reaffirmed FY2026 guidance of 11.10–11.50 EPS.
• Illinois Tool Works also paid a quarterly dividend of $1.61 per share, equal to an annualized yield of about 2.3%. Shares opened at $276.59, near the analyst target and below the 52-week high of $303.15.

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) have received an average recommendation of "Reduce" from the thirteen ratings firms that are covering the stock, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has given a buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $274.00.

ITW has been the topic of a number of research reports. Evercore decreased their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Barclays reduced their price objective on Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 1st. Weiss Ratings cut Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Citigroup reiterated a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. Finally, Wolfe Research restated an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a report on Thursday, July 9th.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon purchased 806 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director owned 1,652 shares in the company, valued at $409,679.48. The trade was a 95.27% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 0.83% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in shares of Illinois Tool Works by 5.3% in the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after acquiring an additional 277 shares during the period. Bison Wealth LLC increased its position in Illinois Tool Works by 2.3% during the 4th quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock valued at $901,000 after purchasing an additional 81 shares during the period. Sivia Capital Partners LLC increased its position in Illinois Tool Works by 20.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock valued at $257,000 after purchasing an additional 177 shares during the period. Sei Investments Co. raised its holdings in Illinois Tool Works by 22.0% during the 2nd quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock worth $26,401,000 after purchasing an additional 19,248 shares during the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in shares of Illinois Tool Works by 2.2% in the 2nd 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 purchasing an additional 2,890 shares during the period. 79.77% of the stock is owned by institutional investors.

Illinois Tool Works Price Performance

Shares of ITW stock opened at $276.59 on Friday. The business has a fifty day simple moving average of $261.69 and a 200 day simple moving average of $266.84. The company has a market cap of $79.57 billion, a P/E ratio of 25.68, a P/E/G ratio of 4.71 and a beta of 1.00. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. Illinois Tool Works has a twelve month low of $238.82 and a twelve month high of $303.15.

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

Illinois Tool Works Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were issued a dividend of $1.61 per share. This represents a $6.44 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, June 30th. Illinois Tool Works's payout ratio is presently 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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