Illinois Tool Works Inc. (NYSE:ITW) Receives $275.69 Consensus Price Target 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 company, Marketbeat reports. Five research 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 target among brokerages that have issued ratings on the stock in the last year is $275.6923.

ITW has been the topic of several research analyst reports. 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. Wolfe Research upped their price objective on Illinois Tool Works from $276.00 to $295.00 and gave the stock an “underperform” rating in a report on Friday, February 27th. Wells Fargo & Company increased their price objective on Illinois Tool Works from $250.00 to $270.00 and gave the company an “underweight” rating in a research report on Wednesday, February 4th. JPMorgan Chase & Co. lifted their target price on Illinois Tool Works from $310.00 to $327.00 and gave the company an “overweight” rating in a research note on Wednesday, March 4th. Finally, UBS Group restated a “neutral” rating and set a $285.00 target price on shares of Illinois Tool Works in a research report on Wednesday, February 4th.

Illinois Tool Works Stock Down 1.1%

Shares of NYSE ITW opened at $258.48 on Friday. Illinois Tool Works has a 12-month low of $214.66 and a 12-month high of $303.15. The firm’s 50-day simple moving average is $276.69 and its 200 day simple moving average is $260.57. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. The company has a market cap of $74.49 billion, a price-to-earnings ratio of 24.64, a price-to-earnings-growth ratio of 13.97 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 earnings per share for the quarter, beating the consensus estimate of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The firm had revenue of $4.09 billion during the quarter, compared to analysts’ expectations of $4.07 billion. During the same quarter last year, the company posted $2.54 EPS. The company’s quarterly revenue was up 4.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. On average, research analysts expect that Illinois Tool Works will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

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

Insider Transactions at Illinois Tool Works

In related news, Director Ernest Scott Santi sold 167,345 shares of the business’s 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 sale, the director directly owned 258,766 shares of the company’s stock, valued at $75,282,792.38. The trade was a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Axel Beck sold 4,223 shares of the stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the completion of the transaction, the executive vice president owned 5,789 shares in the company, valued at $1,680,083.58. This represents a 42.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.88% of the company’s stock.

Institutional Trading of Illinois Tool Works

Institutional investors have recently bought and sold shares of the business. Hsbc Holdings PLC lifted its stake in shares of Illinois Tool Works by 42.1% in the 4th quarter. Hsbc Holdings PLC now owns 819,245 shares of the industrial products company’s stock valued at $201,939,000 after purchasing an additional 242,883 shares during the period. Cornerstone Planning LLC acquired a new stake in shares of Illinois Tool Works during the fourth quarter worth $1,605,000. Rockefeller Capital Management L.P. increased its holdings in Illinois Tool Works by 79.9% in the fourth quarter. Rockefeller Capital Management L.P. now owns 121,160 shares of the industrial products company’s stock valued at $29,842,000 after purchasing an additional 53,793 shares during the last quarter. Nalls Sherbakoff Group LLC acquired a new position in Illinois Tool Works in the fourth quarter valued at about $211,000. Finally, Corient Private Wealth LLC lifted its stake in Illinois Tool Works by 0.4% in the fourth quarter. Corient Private Wealth LLC now owns 615,758 shares of the industrial products company’s stock valued at $153,330,000 after buying an additional 2,641 shares during the period. Institutional investors and hedge funds own 79.77% of the company’s stock.

About Illinois Tool Works

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.