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

Illinois Tool Works Inc. (NYSE:ITW) has received an average recommendation of “Reduce” from the thirteen ratings firms that are covering the company, MarketBeat.com reports. Five analysts have rated the stock with a sell rating, seven have given a hold rating and one has issued a buy rating on the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $273.5385.

Several research analysts recently weighed in on the company. Citigroup boosted their target price on Illinois Tool Works from $284.00 to $287.00 and gave the stock a “neutral” rating in a research note on Monday, May 4th. Barclays lowered their price target on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating for the company in a report on Wednesday, April 1st. JPMorgan Chase & Co. cut their price objective on shares of Illinois Tool Works from $303.00 to $295.00 and set an “overweight” rating on the stock in a report on Friday, May 1st. Weiss Ratings cut shares of Illinois Tool Works from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Finally, Evercore dropped their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th.

Illinois Tool Works Price Performance

Shares of ITW opened at $272.80 on Monday. The company has a market cap of $78.49 billion, a price-to-earnings ratio of 25.33, a price-to-earnings-growth ratio of 4.69 and a beta of 1.00. Illinois Tool Works has a twelve month low of $238.82 and a twelve month high of $303.15. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The company has a 50 day moving average of $258.09 and a two-hundred day moving average of $264.69.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.09. Illinois Tool Works had a return on equity of 97.36% and a net margin of 19.32%.The business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the prior year, the firm posted $2.38 earnings per share. The business’s quarterly revenue was up 4.6% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. As a group, analysts predict that Illinois Tool Works will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $1.61 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works’s payout ratio is 59.80%.

Insider Activity

In other news, Director Jennifer F. Scanlon bought 806 shares of Illinois Tool Works stock in a transaction that occurred on Tuesday, June 2nd. The stock was bought at an average price of $247.99 per share, for a total transaction of $199,879.94. Following the purchase, the director directly owned 1,652 shares of the company’s stock, valued at approximately $409,679.48. The trade was a 95.27% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.83% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Cresta Advisors Ltd. purchased a new position in shares of Illinois Tool Works in the fourth quarter worth about $25,000. Motiv8 Investments LLC acquired a new position in Illinois Tool Works in the 4th quarter worth approximately $27,000. Kemnay Advisory Services Inc. acquired a new position in Illinois Tool Works in the 4th quarter worth approximately $27,000. Lodestone Wealth Management LLC purchased a new position in Illinois Tool Works during the 4th quarter worth approximately $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in Illinois Tool Works during the 4th quarter valued at approximately $29,000. 79.77% of the stock is owned by institutional investors and hedge funds.

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.