Illinois Tool Works Inc. (NYSE:ITW) Receives Average Recommendation of “Reduce” from Analysts

Shares of Illinois Tool Works Inc. (NYSE:ITW) have earned an average recommendation of “Reduce” from the fourteen research firms that are covering the firm, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $272.9231.

A number of research analysts have recently weighed in on ITW shares. Citigroup increased their price target on Illinois Tool Works from $271.00 to $284.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Wells Fargo & Company upped their price objective on Illinois Tool Works from $250.00 to $270.00 and gave the company an “underweight” rating in a report on Wednesday, February 4th. Wolfe Research reduced their target price on Illinois Tool Works from $278.00 to $276.00 and set an “underperform” rating on the stock in a report on Wednesday, February 4th. Barclays upped their price target on Illinois Tool Works from $244.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, February 9th. Finally, UBS Group restated a “neutral” rating and set a $285.00 price objective on shares of Illinois Tool Works in a report on Wednesday, February 4th.

Illinois Tool Works Stock Down 0.7%

Shares of ITW opened at $292.93 on Tuesday. The business’s fifty day moving average price is $266.54 and its two-hundred day moving average price is $258.78. The firm has a market capitalization of $84.42 billion, a price-to-earnings ratio of 27.93, a PEG ratio of 15.79 and a beta of 1.15. Illinois Tool Works has a 52 week low of $214.66 and a 52 week high of $303.15. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21.

Illinois Tool Works (NYSE:ITW) last announced its quarterly earnings data on Tuesday, February 3rd. The industrial products company reported $2.72 EPS for the quarter, topping analysts’ consensus estimates of $2.69 by $0.03. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The firm had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. The company’s revenue was up 4.1% on a year-over-year basis. During the same period last year, the company earned $2.54 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. On average, analysts predict that Illinois Tool Works will post 10.39 earnings per share for the current year.

Illinois Tool Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 31st will be paid a dividend of $1.61 per share. This represents a $6.44 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio (DPR) is presently 61.39%.

Insider Transactions at Illinois Tool Works

In other news, EVP Axel Beck sold 4,223 shares of Illinois Tool Works stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the transaction, the executive vice president owned 5,789 shares in the company, valued at $1,680,083.58. The trade was a 42.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Ernest Scott Santi sold 167,345 shares of Illinois Tool Works stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total transaction of $48,685,680.85. Following the completion of the transaction, the director directly owned 258,766 shares in the company, valued at approximately $75,282,792.38. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.88% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Illinois Tool Works

Several institutional investors have recently added to or reduced their stakes in the stock. Phillip James Consulting Co. acquired a new position in Illinois Tool Works in the 4th quarter worth $109,000. Kera Capital Partners Inc. acquired a new position in shares of Illinois Tool Works during the fourth quarter worth about $1,166,000. Virtu Financial LLC bought a new position in shares of Illinois Tool Works during the fourth quarter worth about $533,000. MV Capital Management Inc. acquired a new stake in Illinois Tool Works in the 4th quarter valued at approximately $767,000. Finally, Cambient Family Office LLC acquired a new stake in Illinois Tool Works in the 4th quarter valued at approximately $648,000. 79.77% of the stock is owned by institutional investors.

Illinois Tool Works Company Profile

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.