NYSE:ITW

Illinois Tool Works - ITW Stock Forecast, Price & News

$209.32

-1.44 (-0.68%)

(As of 08/8/2022 12:00 AM ET)

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Today's Range: $208.55
▼
$213.45
50-Day Range: $175.97
▼
$210.76
52-Week Range: $173.52
▼
$249.81

Volume: 705,758 shs
Average Volume: 1.03 million shs
Market Capitalization: $65.19 billion

P/E Ratio: 24.83
Dividend Yield: 2.32%
Price Target: $204.00

Illinois Tool Works MarketRank™ Forecast

Analyst Rating: Hold
2.00 Rating Score
Upside/Downside: 2.5% Downside
$204.00 Price Target
Short Interest: Healthy
1.85% of Float Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -3.96
Upright™ Environmental Score
News Sentiment: 0.25
Based on 53 Articles This Week
Insider Trading: Selling Shares
$205,340 Sold Last Quarter
Proj. Earnings Growth: 5.95%
From $9.08 to $9.62 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.40 out of 5 stars

Industrial Products Sector

65th out of 182 stocks

General Industrial Machinery & Equipment Industry

4th out of 7 stocks

2.0

Analyst's Opinion

Consensus Rating
Illinois Tool Works has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 2 buy ratings, 7 hold ratings, and 2 sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $204.00, Illinois Tool Works has a forecasted downside of 2.5% from its current price of $209.32.
Amount of Analyst Coverage
Illinois Tool Works has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

4.0

Short Interest

Percentage of Shares Shorted
1.85% of the float of Illinois Tool Works has been sold short.
Short Interest Ratio / Days to Cover
Illinois Tool Works has a short interest ratio ("days to cover") of 5.
Change versus previous month
Short interest in Illinois Tool Works has recently decreased by 9.34%, indicating that investor sentiment is improving significantly.

4.2

Dividend Strength

Dividend Yield
Illinois Tool Works pays a meaningful dividend of 2.32%, higher than the bottom 25% of all stocks that pay dividends.
Dividend Growth
Illinois Tool Works has been increasing its dividend for 52 years.
Dividend Coverage
The dividend payout ratio of Illinois Tool Works is 57.89%. This payout ratio is at a healthy, sustainable level, below 75%.
Dividend Sustainability
Based on earnings estimates, Illinois Tool Works will have a dividend payout ratio of 50.73% next year. This indicates that Illinois Tool Works will be able to sustain or increase its dividend.

1.3

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
Illinois Tool Works has received a -37.17% net impact score from Upright. The largest negative impact of Illinois Tool Works in category "GHG emissions" seems to be driven mostly by its "Plastic zipper bags", "Metal welding equipment", "Car body parts", and "Car powertrain and chassis" products. See details.
Environmental Sustainability
The Environmental Impact score for Illinois Tool Works is -3.96.

2.4

News and Social Media Coverage

News Sentiment
Illinois Tool Works has a news sentiment score of 0.25. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Industrial Products companies.
News Coverage This Week
MarketBeat has tracked 53 news articles for Illinois Tool Works this week, compared to 5 articles on an average week.
Search Interest
Only 18 people have searched for ITW on MarketBeat in the last 30 days. This is a decrease of -25% compared to the previous 30 days.
MarketBeat Follows
10 people have added Illinois Tool Works to their MarketBeat watchlist in the last 30 days. This is an increase of 43% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Illinois Tool Works insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $205,340.00 in company stock.
Percentage Held by Insiders
Only 0.78% of the stock of Illinois Tool Works is held by insiders.
Percentage Held by Institutions
79.03% of the stock of Illinois Tool Works is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

1.9

Earnings and Valuation

Earnings Growth
Earnings for Illinois Tool Works are expected to grow by 5.95% in the coming year, from $9.08 to $9.62 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Illinois Tool Works is 24.83, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.40.
Price to Earnings Ratio vs. Sector
The P/E ratio of Illinois Tool Works is 24.83, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 26.84.
Price to Earnings Growth Ratio
Illinois Tool Works has a PEG Ratio of 2.32. PEG Ratios above 1 indicate that a company could be overvalued.
Price to Book Value per Share Ratio
Illinois Tool Works has a P/B Ratio of 18.12. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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About Illinois Tool Works (NYSE:ITW) Stock

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM/tiers, commercial food equipment, construction, general industrial, and automotive aftermarket end markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft cut their price target on Illinois Tool Works from $229.00 to $189.00 and set a "hold" rating for the company in a report on Wednesday, July 13th. Credit Suisse Group upped their target price on shares of Illinois Tool Works from $225.00 to $229.00 and gave the company an "outperform" rating in a report on Wednesday, August 3rd. Citigroup lifted their price target on shares of Illinois Tool Works from $191.00 to $210.00 and gave the stock a "neutral" rating in a report on Wednesday, August 3rd. JPMorgan Chase & Co. reduced their price objective on shares of Illinois Tool Works from $255.00 to $215.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 12th. Finally, Stifel Nicolaus cut their price target on Illinois Tool Works from $206.00 to $163.00 in a report on Monday, July 18th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $204.00.

Illinois Tool Works Price Performance

Shares of Illinois Tool Works stock opened at $209.32 on Tuesday. The stock has a market capitalization of $65.19 billion, a P/E ratio of 24.83, a PEG ratio of 2.32 and a beta of 1.11. The company has a current ratio of 1.48, a quick ratio of 1.02 and a debt-to-equity ratio of 1.81. The business's fifty day moving average price is $191.98 and its 200 day moving average price is $204.66. Illinois Tool Works has a twelve month low of $173.52 and a twelve month high of $249.81.

Illinois Tool Works (NYSE:ITW - Get Rating) last released its quarterly earnings data on Tuesday, August 2nd. The industrial products company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.22 by $0.15. The business had revenue of $4.01 billion for the quarter, compared to analyst estimates of $3.98 billion. Illinois Tool Works had a return on equity of 75.41% and a net margin of 17.44%. The company's revenue was up 9.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.10 EPS. As a group, research analysts anticipate that Illinois Tool Works will post 9.08 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Friday, September 30th will be paid a $1.31 dividend. This represents a $5.24 dividend on an annualized basis and a dividend yield of 2.50%. The ex-dividend date is Thursday, September 29th. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.22. Illinois Tool Works's dividend payout ratio (DPR) is currently 57.89%.

Insider Activity at Illinois Tool Works

In other Illinois Tool Works news, EVP Lei Zhang Schlitz sold 1,000 shares of the firm's stock in a transaction dated Wednesday, May 11th. The stock was sold at an average price of $205.34, for a total value of $205,340.00. Following the transaction, the executive vice president now directly owns 7,803 shares of the company's stock, valued at $1,602,268.02. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.78% of the company's stock.

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