Illinois Tool Works (NYSE:ITW) Hits New 1-Year Low - What's Next?

Shares of Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) hit a new 52-week low during trading on Wednesday . The company traded as low as $228.76 and last traded at $239.86, with a volume of 3721493 shares changing hands. The stock had previously closed at $241.75.

Analyst Ratings Changes

ITW has been the topic of several recent analyst reports. Wells Fargo & Company cut their price objective on shares of Illinois Tool Works from $250.00 to $245.00 and set an "underweight" rating on the stock in a research report on Thursday, February 6th. JPMorgan Chase & Co. reduced their price target on shares of Illinois Tool Works from $300.00 to $295.00 and set an "overweight" rating for the company in a research report on Monday, February 3rd. Evercore ISI lowered their price objective on Illinois Tool Works from $255.00 to $252.00 and set an "underperform" rating on the stock in a research report on Wednesday, February 19th. Stifel Nicolaus cut their target price on Illinois Tool Works from $259.00 to $227.00 and set a "hold" rating on the stock in a research note on Monday, April 14th. Finally, StockNews.com downgraded Illinois Tool Works from a "buy" rating to a "hold" rating in a report on Thursday, February 6th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, two have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $260.09.

Illinois Tool Works Trading Down 0.8 %

The stock has a 50 day simple moving average of $246.16 and a 200-day simple moving average of $256.79. The firm has a market capitalization of $70.37 billion, a P/E ratio of 20.47, a P/E/G ratio of 4.56 and a beta of 1.12. The company has a current ratio of 1.36, a quick ratio of 0.99 and a debt-to-equity ratio of 1.90.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.34 by $0.04. The business had revenue of $3.84 billion during the quarter, compared to the consensus estimate of $3.83 billion. Illinois Tool Works had a return on equity of 95.39% and a net margin of 21.94%. The business's quarterly revenue was down 3.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.44 EPS. On average, equities research analysts forecast that Illinois Tool Works Inc. will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 10th. Stockholders of record on Monday, March 31st were given a dividend of $1.50 per share. The ex-dividend date was Monday, March 31st. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.50%. Illinois Tool Works's payout ratio is currently 51.19%.

Insider Activity

In other news, Director Ernest Scott Santi sold 70,000 shares of Illinois Tool Works stock in a transaction dated Wednesday, February 19th. The stock was sold at an average price of $263.30, for a total transaction of $18,431,000.00. Following the transaction, the director now directly owns 260,224 shares of the company's stock, valued at $68,516,979.20. The trade was a 21.20 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Christopher A. O'herlihy sold 48,453 shares of Illinois Tool Works stock in a transaction dated Friday, March 7th. The shares were sold at an average price of $274.36, for a total value of $13,293,565.08. Following the transaction, the chief executive officer now directly owns 55,113 shares in the company, valued at approximately $15,120,802.68. The trade was a 46.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 159,925 shares of company stock valued at $42,973,845 in the last ninety days. Corporate insiders own 0.88% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ITW. Prudent Man Investment Management Inc. purchased a new position in Illinois Tool Works in the 4th quarter worth approximately $25,000. Redwood Park Advisors LLC purchased a new position in Illinois Tool Works in the 4th quarter worth approximately $26,000. Ameriflex Group Inc. purchased a new position in Illinois Tool Works in the 4th quarter worth approximately $26,000. von Borstel & Associates Inc. purchased a new stake in shares of Illinois Tool Works during the 1st quarter worth approximately $26,000. Finally, Sugar Maple Asset Management LLC purchased a new stake in shares of Illinois Tool Works during the 4th quarter worth approximately $28,000. 79.77% of the stock is owned by hedge funds and other institutional investors.

Illinois Tool Works Company Profile

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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