Zacks Investment Research lowered shares of Illinois Tool Works (NYSE:ITW) from a buy rating to a hold rating in a research report report published on Wednesday morning.
According to Zacks, “In the last three months, Illinois Tool Works' shares have outperformed the industry. We believe that the company is well positioned to benefit from its solid product portfolio, strengthening foothold in various end markets and strategic initiatives to improve margins. From 2018 to 2022, the company expects organic revenue growth to be in the 3-5% range, operating margin to be in excess of 25% and earnings per share to grow 8-10% in each year. For 2018, the company anticipates GAAP earnings to be within $7.05-$7.25 per share, organic revenue growth to be 3-4% and operating margin to be 25-25.5%. The projections for 2017 have been reaffirmed, with earnings per share still anticipated to be $6.62-$6.72. However, the company is exposed to headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties.”
Several other brokerages have also recently issued reports on ITW. Jefferies Group restated a buy rating and issued a $190.00 target price on shares of Illinois Tool Works in a report on Wednesday, November 29th. Wells Fargo & Co set a $190.00 price target on shares of Illinois Tool Works and gave the company a buy rating in a research report on Monday, December 4th. Morgan Stanley upped their price target on shares of Illinois Tool Works from $147.00 to $151.00 and gave the company an equal weight rating in a research report on Tuesday, October 24th. Royal Bank of Canada upped their price target on shares of Illinois Tool Works from $143.00 to $155.00 and gave the company a sector perform rating in a research report on Tuesday, October 24th. Finally, Stifel Nicolaus reduced their price target on shares of Illinois Tool Works from $162.00 to $158.00 and set a hold rating for the company in a research report on Tuesday, October 24th. One analyst has rated the stock with a sell rating, nine have given a hold rating and eight have given a buy rating to the company. Illinois Tool Works has a consensus rating of Hold and a consensus price target of $168.25.
Shares of Illinois Tool Works (ITW) traded up $2.10 during trading on Wednesday, hitting $172.42. 1,237,813 shares of the stock traded hands, compared to its average volume of 962,878. Illinois Tool Works has a fifty-two week low of $122.61 and a fifty-two week high of $172.64. The company has a debt-to-equity ratio of 1.48, a quick ratio of 1.98 and a current ratio of 2.41. The firm has a market cap of $58,351.46, a PE ratio of 26.40, a price-to-earnings-growth ratio of 2.32 and a beta of 1.18.
Illinois Tool Works (NYSE:ITW) last issued its earnings results on Monday, October 23rd. The industrial products company reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.20. Illinois Tool Works had a net margin of 16.12% and a return on equity of 47.21%. The business had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.57 billion. During the same quarter in the prior year, the business posted $1.50 EPS. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. analysts expect that Illinois Tool Works will post 6.7 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 10th. Shareholders of record on Friday, December 29th were given a dividend of $0.78 per share. The ex-dividend date was Thursday, December 28th. This represents a $3.12 dividend on an annualized basis and a yield of 1.81%. Illinois Tool Works’s payout ratio is currently 47.78%.
In other Illinois Tool Works news, EVP Juan Valls sold 48,622 shares of the company’s stock in a transaction on Wednesday, October 25th. The shares were sold at an average price of $156.73, for a total transaction of $7,620,526.06. Following the completion of the transaction, the executive vice president now owns 71,101 shares in the company, valued at approximately $11,143,659.73. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Roland M. Martel sold 64,818 shares of the company’s stock in a transaction on Monday, December 4th. The stock was sold at an average price of $167.41, for a total transaction of $10,851,181.38. Following the transaction, the insider now owns 26,222 shares of the company’s stock, valued at approximately $4,389,825.02. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 208,258 shares of company stock valued at $33,653,349. 0.90% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the business. Omnia Family Wealth LLC grew its stake in shares of Illinois Tool Works by 0.3% during the 2nd quarter. Omnia Family Wealth LLC now owns 747 shares of the industrial products company’s stock worth $107,000 after purchasing an additional 2 shares during the period. Private Vista LLC grew its stake in shares of Illinois Tool Works by 13,697.3% during the 2nd quarter. Private Vista LLC now owns 279,534 shares of the industrial products company’s stock worth $108,000 after purchasing an additional 277,508 shares during the period. Harding Loevner LP acquired a new position in shares of Illinois Tool Works during the 2nd quarter worth $115,000. WFG Advisors LP grew its stake in shares of Illinois Tool Works by 24.7% during the 2nd quarter. WFG Advisors LP now owns 812 shares of the industrial products company’s stock worth $116,000 after purchasing an additional 161 shares during the period. Finally, Salem Investment Counselors Inc. grew its stake in shares of Illinois Tool Works by 1.9% during the 2nd quarter. Salem Investment Counselors Inc. now owns 900 shares of the industrial products company’s stock worth $129,000 after purchasing an additional 17 shares during the period. Institutional investors own 74.73% of the company’s stock.
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About Illinois Tool Works
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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