Zacks Research Issues Negative Outlook for ITW Earnings

Key Points

• Zacks Research has revised its Q1 2026 earnings per share estimate for Illinois Tool Works to $2.51, down from $2.52, while the full-year consensus estimate remains at $10.39 per share.
• Institutional investors hold 79.77% of Illinois Tool Works stock, indicating strong interest from hedge funds and other financial entities.
• Illinois Tool Works has announced an increase in its quarterly dividend to $1.61 per share, reflecting a boost from the previous $1.50 payout, with a yield of 2.5%.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Research analysts at Zacks Research cut their Q1 2026 EPS estimates for shares of Illinois Tool Works in a research report issued to clients and investors on Monday, October 6th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $2.51 for the quarter, down from their prior forecast of $2.52. The consensus estimate for Illinois Tool Works' current full-year earnings is $10.39 per share.

ITW has been the subject of a number of other reports. Stifel Nicolaus lifted their target price on shares of Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Weiss Ratings reissued a "buy (b)" rating on shares of Illinois Tool Works in a research report on Saturday, September 27th. Truist Financial lowered shares of Illinois Tool Works from a "buy" rating to a "hold" rating and set a $283.00 price target for the company. in a research report on Thursday, July 31st. Wells Fargo & Company raised their price target on shares of 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, Deutsche Bank Aktiengesellschaft raised their price target on shares of Illinois Tool Works from $265.00 to $268.00 and gave the stock a "hold" rating in a research report on Thursday, October 2nd. Two investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $261.58.

Illinois Tool Works Stock Down 0.5%

ITW stock opened at $258.76 on Tuesday. The firm has a 50 day moving average of $261.41 and a 200 day moving average of $251.05. The stock has a market capitalization of $75.43 billion, a PE ratio of 22.68, a price-to-earnings-growth ratio of 5.75 and a beta of 1.10. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40. Illinois Tool Works has a 52 week low of $214.66 and a 52 week high of $279.13.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Wednesday, July 30th. The industrial products company reported $2.58 EPS for the quarter, topping analysts' consensus estimates of $2.56 by $0.02. The company had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $4.01 billion. Illinois Tool Works had a net margin of 21.31% and a return on equity of 90.89%. Illinois Tool Works's revenue for the quarter was up .6% on a year-over-year basis. During the same period last year, the business earned $2.54 EPS. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS.

Institutional Trading of Illinois Tool Works

Institutional investors and hedge funds have recently bought and sold shares of the business. Frazier Financial Advisors LLC purchased a new stake in shares of Illinois Tool Works during the second quarter worth approximately $25,000. von Borstel & Associates Inc. acquired a new position in Illinois Tool Works in the first quarter valued at approximately $26,000. SOA Wealth Advisors LLC. boosted its holdings in Illinois Tool Works by 90.9% in the second quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 50 shares in the last quarter. Saudi Central Bank acquired a new position in Illinois Tool Works in the first quarter valued at approximately $29,000. Finally, Twin Peaks Wealth Advisors LLC acquired a new position in Illinois Tool Works in the second quarter valued at approximately $31,000. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions 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 on Thursday, September 11th. The shares were sold at an average price of $265.08, for a total transaction of $1,803,074.16. Following the sale, 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.88% of the stock is currently owned by company insiders.

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $1.61 per share. This is a boost from Illinois Tool Works's previous quarterly dividend of $1.50. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $6.44 annualized dividend and a yield of 2.5%. Illinois Tool Works's dividend 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.

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