Illinois Tool Works (NYSE:ITW) Shares Gap Down - Time to Sell?

Key Points

• Illinois Tool Works shares opened at $249.00, down from a previous close of $257.44, and last traded at $247.20 with a trading volume of 550,022 shares.
• Analyst ratings show two "Buy" ratings, eight "Hold" ratings, and three "Sell" ratings, with a consensus rating of "Reduce" and an average price target of $262.83.
• The company announced a dividend increase to $1.61 per share, up from $1.50, representing a yield of 2.6% and indicating healthy financial performance amidst a recent drop in stock price.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $257.44, but opened at $249.00. Illinois Tool Works shares last traded at $247.20, with a volume of 550,022 shares trading hands.

Wall Street Analysts Forecast Growth

ITW has been the topic of a number of recent analyst reports. Weiss Ratings restated a "buy (b)" rating on shares of Illinois Tool Works in a research note on Wednesday, October 8th. Evercore ISI set a $265.00 price target on Illinois Tool Works and gave the stock an "underperform" rating in a research report on Tuesday, August 19th. Truist Financial increased their price target on Illinois Tool Works from $283.00 to $298.00 and gave the stock a "hold" rating in a research report on Wednesday, October 8th. Wells Fargo & Company increased their price target on Illinois Tool Works from $235.00 to $250.00 and gave the stock an "underweight" rating in a research report on Thursday, July 31st. Finally, Stifel Nicolaus increased their target price on Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $262.83.

Illinois Tool Works Trading Down 5.1%

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 company has a market capitalization of $71.21 billion, a price-to-earnings ratio of 21.43, a PEG ratio of 5.60 and a beta of 1.10. The firm has a 50-day moving average price of $259.61 and a 200-day moving average price of $251.43.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings results on Friday, October 24th. The industrial products company reported $2.81 earnings per share for the quarter, topping analysts' consensus estimates of $2.69 by $0.12. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%.Illinois Tool Works's revenue for the quarter was up 2.3% on a year-over-year basis. During the same period in the previous year, the company posted $3.91 EPS. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS. As a group, sell-side analysts predict that Illinois Tool Works Inc. will post 10.39 EPS for the current year.

Illinois Tool Works Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th were given a dividend of $1.61 per share. This represents a $6.44 annualized dividend and a yield of 2.6%. The ex-dividend date was Tuesday, September 30th. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.50. Illinois Tool Works's dividend payout ratio is presently 56.44%.

Insider Buying and Selling at Illinois Tool Works

In other Illinois Tool Works news, CAO Randall J. Scheuneman sold 6,802 shares of Illinois Tool Works stock in a transaction dated 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 transaction, the chief accounting officer owned 10,314 shares of the company's stock, valued at $2,734,035.12. The trade was a 39.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.88% of the company's stock.

Hedge Funds Weigh In On Illinois Tool Works

Institutional investors and hedge funds have recently bought and sold shares of the business. Frazier Financial Advisors LLC purchased a new position in Illinois Tool Works during the second quarter valued at approximately $25,000. Corsicana & Co. purchased a new position in shares of Illinois Tool Works during the 3rd quarter valued at $26,000. von Borstel & Associates Inc. purchased a new position in shares of Illinois Tool Works during the 1st quarter valued at $26,000. SOA Wealth Advisors LLC. grew its holdings in shares of Illinois Tool Works by 90.9% during the 2nd quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 50 shares in the last quarter. Finally, Saudi Central Bank purchased a new position in shares of Illinois Tool Works during the 1st quarter valued at $29,000. Hedge funds and other institutional investors own 79.77% of the company's stock.

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.

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