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

Illinois Tool Works Inc. (NYSE:ITW) has been assigned an average recommendation of “Reduce” from the fourteen brokerages that are covering the stock, Marketbeat Ratings reports. Five investment analysts have rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $275.6923.

Several research analysts recently issued reports on ITW shares. Wells Fargo & Company upped their price target on shares of Illinois Tool Works from $250.00 to $270.00 and gave the stock an “underweight” rating in a research report on Wednesday, February 4th. Robert W. Baird set a $278.00 target price on shares of Illinois Tool Works in a research note on Wednesday, February 4th. Wolfe Research upped their target price on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an “underperform” rating in a research report on Friday, February 27th. Truist Financial increased their price target on shares of Illinois Tool Works from $275.00 to $280.00 and gave the company a “hold” rating in a research note on Wednesday, February 4th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Illinois Tool Works in a report on Wednesday, January 28th.

Illinois Tool Works Trading Down 1.1%

ITW stock opened at $257.76 on Friday. The business has a fifty day moving average price of $276.32 and a 200 day moving average price of $260.63. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.21 and a quick ratio of 0.89. Illinois Tool Works has a fifty-two week low of $214.66 and a fifty-two week high of $303.15. The stock has a market capitalization of $74.28 billion, a price-to-earnings ratio of 24.57, a P/E/G ratio of 13.92 and a beta of 1.13.

Illinois Tool Works (NYSE:ITW) last posted 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 company had revenue of $4.09 billion for the quarter, compared to analyst estimates of $4.07 billion. During the same quarter in the previous year, the firm earned $2.54 earnings per share. The business’s revenue was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Analysts expect that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 31st will be given a dividend of $1.61 per share. The ex-dividend date is Tuesday, March 31st. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.5%. Illinois Tool Works’s payout ratio is presently 61.39%.

Insider Buying and Selling at Illinois Tool Works

In related news, Director Ernest Scott Santi sold 167,345 shares of Illinois Tool Works stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the completion of the sale, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. This trade represents a 39.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Axel Beck sold 4,223 shares of the business’s stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $290.22, for a total value of $1,225,599.06. Following the sale, the executive vice president directly owned 5,789 shares of the company’s stock, valued at $1,680,083.58. This represents a 42.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Meridian Wealth Management LLC boosted its stake in Illinois Tool Works by 1.3% in the fourth quarter. Meridian Wealth Management LLC now owns 2,818 shares of the industrial products company’s stock valued at $694,000 after acquiring an additional 37 shares during the last quarter. Winnow Wealth LLC raised its position in shares of Illinois Tool Works by 1.0% during the 4th quarter. Winnow Wealth LLC now owns 3,809 shares of the industrial products company’s stock valued at $941,000 after acquiring an additional 37 shares during the last quarter. Mayflower Financial Advisors LLC lifted its stake in shares of Illinois Tool Works by 3.8% in the 4th quarter. Mayflower Financial Advisors LLC now owns 1,065 shares of the industrial products company’s stock valued at $262,000 after purchasing an additional 39 shares during the period. Revisor Wealth Management LLC boosted its position in shares of Illinois Tool Works by 1.4% in the 4th quarter. Revisor Wealth Management LLC now owns 2,841 shares of the industrial products company’s stock worth $734,000 after purchasing an additional 39 shares during the last quarter. Finally, Concord Asset Management LLC VA grew its stake in shares of Illinois Tool Works by 1.1% during the fourth quarter. Concord Asset Management LLC VA now owns 3,591 shares of the industrial products company’s stock worth $884,000 after purchasing an additional 39 shares during the period. Institutional investors own 79.77% of the company’s stock.

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.