Zacks Investment Research lowered shares of Illinois Tool Works Inc. (NYSE:ITW) from a buy rating to a hold rating in a research report released on Monday, July 31st.
According to Zacks, “Year to date, Illinois Tool Works' shares have outperformed the industry. In second-quarter 2017, the company's earnings of $1.66 per share surpassed its Zacks Consensus Estimates by 1.84%. Businesses in six of seven end-market segments were strong. For 2017, the company increased its earnings guidance to $6.32-$6.52 per share from the earlier projection of $6.20-$6.40. Organic revenue growth is expected to be 2-4% while total revenue is projected to be within $14.1-$14.2 billion, up from $13.9-$14.1 billion expected earlier. Enterprise initiatives are likely to contribute 100 basis points (bps) to operating margin growth. However, the company is exposed to headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties.”
ITW has been the subject of several other research reports. Credit Suisse Group set a $141.00 target price on shares of Illinois Tool Works and gave the stock a hold rating in a report on Tuesday, July 25th. Goldman Sachs Group, Inc. (The) raised shares of Illinois Tool Works from a sell rating to a buy rating and lifted their target price for the stock from $131.00 to $155.00 in a report on Thursday, June 1st. BidaskClub cut shares of Illinois Tool Works from a strong-buy rating to a buy rating in a research note on Saturday, June 24th. Deutsche Bank AG reiterated a buy rating and issued a $160.00 price objective (up previously from $140.00) on shares of Illinois Tool Works in a research note on Saturday, April 29th. Finally, Jefferies Group LLC reiterated a buy rating and issued a $155.00 price objective (up previously from $145.00) on shares of Illinois Tool Works in a research note on Tuesday, April 11th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and seven have assigned a buy rating to the stock. The company presently has an average rating of Hold and an average target price of $151.08.
Illinois Tool Works (NYSE ITW) opened at 135.67 on Monday. The firm has a market cap of $46.69 billion, a price-to-earnings ratio of 21.95 and a beta of 1.11. Illinois Tool Works has a 12 month low of $111.50 and a 12 month high of $150.29. The stock’s 50 day moving average is $142.53 and its 200-day moving average is $137.77.
Illinois Tool Works (NYSE:ITW) last announced its earnings results on Monday, July 24th. The industrial products company reported $1.66 EPS for the quarter, topping the consensus estimate of $1.63 by $0.03. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.61 billion. Illinois Tool Works had a net margin of 15.50% and a return on equity of 46.57%. Illinois Tool Works’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.46 EPS. On average, analysts anticipate that Illinois Tool Works will post $6.46 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 10th. Stockholders of record on Friday, September 29th will be given a $0.78 dividend. The ex-dividend date of this dividend is Thursday, September 28th. This is a boost from Illinois Tool Works’s previous quarterly dividend of $0.65. This represents a $3.12 annualized dividend and a dividend yield of 2.30%. Illinois Tool Works’s payout ratio is presently 42.07%.
In related news, Vice Chairman Christopher A. O’herlihy sold 36,467 shares of the company’s stock in a transaction that occurred on Monday, June 5th. The shares were sold at an average price of $144.00, for a total transaction of $5,251,248.00. Following the completion of the transaction, the insider now directly owns 55,878 shares in the company, valued at approximately $8,046,432. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Michael M. Larsen sold 52,447 shares of the company’s stock in a transaction that occurred on Friday, May 26th. The stock was sold at an average price of $140.62, for a total transaction of $7,375,097.14. Following the transaction, the chief financial officer now owns 67,383 shares of the company’s stock, valued at $9,475,397.46. The disclosure for this sale can be found here. Insiders sold a total of 100,664 shares of company stock valued at $14,329,625 over the last 90 days. Corporate insiders own 0.90% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in ITW. Nadler Financial Group Inc. boosted its position in Illinois Tool Works by 3.0% in the first quarter. Nadler Financial Group Inc. now owns 3,333 shares of the industrial products company’s stock worth $442,000 after buying an additional 97 shares in the last quarter. Denali Advisors LLC boosted its position in Illinois Tool Works by 8.6% in the first quarter. Denali Advisors LLC now owns 64,213 shares of the industrial products company’s stock worth $8,506,000 after buying an additional 5,092 shares in the last quarter. Fulton Bank N.A. bought a new position in Illinois Tool Works during the first quarter worth about $207,000. Manning & Napier Advisors LLC boosted its position in Illinois Tool Works by 3.2% in the first quarter. Manning & Napier Advisors LLC now owns 62,172 shares of the industrial products company’s stock worth $8,235,000 after buying an additional 1,912 shares in the last quarter. Finally, CENTRAL TRUST Co boosted its position in Illinois Tool Works by 6.5% in the first quarter. CENTRAL TRUST Co now owns 6,741 shares of the industrial products company’s stock worth $893,000 after buying an additional 410 shares in the last quarter. Institutional investors and hedge funds own 74.77% of the company’s stock.
Illinois Tool Works Company Profile
Illinois Tool Works Inc is a manufacturer of industrial products and equipment. The Company operates through seven segments. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions.
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