Zacks Investment Research downgraded shares of Illinois Tool Works (NYSE:ITW) from a buy rating to a hold rating in a research report released on Monday morning.
According to Zacks, “In the last six months, Illinois Tool Works' shares have outperformed the industry. We believe that the company is well positioned to gain from its solid product portfolio, strengthening foothold in end markets and strategic initiatives to improve margins. Also, the policy of rewarding shareholders handsomely will work in the company's favor. For 2018, the company anticipates earnings to be within $7.45-$7.65 per share, reflecting 40 cents growth at mid-point. Organic revenue growth is expected to be 3-4%. 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.”
Several other research firms have also recently weighed in on ITW. Jefferies Group reaffirmed a buy rating and set a $190.00 price objective on shares of Illinois Tool Works in a research report on Wednesday, November 29th. Wells Fargo set a $190.00 price objective on Illinois Tool Works and gave the company a buy rating in a research report on Monday, December 4th. JPMorgan Chase & Co. lifted their price objective on Illinois Tool Works from $160.00 to $168.00 and gave the company a neutral rating in a research report on Thursday, January 25th. Citigroup lifted their price objective on Illinois Tool Works from $192.00 to $202.00 and gave the company a buy rating in a research report on Thursday, January 25th. Finally, Royal Bank of Canada reaffirmed a hold rating and set a $166.00 price objective on shares of Illinois Tool Works in a research report on Tuesday, December 5th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the stock. The stock has an average rating of Hold and a consensus price target of $177.18.
Shares of Illinois Tool Works stock opened at $168.22 on Monday. The company has a current ratio of 2.38, a quick ratio of 1.98 and a debt-to-equity ratio of 1.63. The firm has a market capitalization of $57,253.30, a P/E ratio of 34.61, a price-to-earnings-growth ratio of 2.15 and a beta of 1.21. Illinois Tool Works has a 12-month low of $129.17 and a 12-month high of $179.07.
Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Wednesday, January 24th. The industrial products company reported $1.70 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.62 by $0.08. The business had revenue of $3.63 billion for the quarter, compared to analysts’ expectations of $3.54 billion. Illinois Tool Works had a return on equity of 48.42% and a net margin of 11.79%. The business’s revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.39 EPS. equities research analysts anticipate that Illinois Tool Works will post 7.71 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 10th. Stockholders of record on Friday, March 30th will be given a $0.78 dividend. The ex-dividend date of this dividend is Wednesday, March 28th. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.85%. Illinois Tool Works’s dividend payout ratio is currently 64.20%.
In other news, insider Sundaram Nagarajan sold 18,650 shares of the business’s stock in a transaction that occurred on Friday, January 26th. The stock was sold at an average price of $178.00, for a total value of $3,319,700.00. Following the sale, the insider now directly owns 42,497 shares of the company’s stock, valued at approximately $7,564,466. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 0.90% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC lifted its position in Illinois Tool Works by 5.7% in the 3rd quarter. Janus Henderson Group PLC now owns 3,964,715 shares of the industrial products company’s stock valued at $586,616,000 after acquiring an additional 212,560 shares in the last quarter. Geode Capital Management LLC lifted its position in Illinois Tool Works by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 3,345,059 shares of the industrial products company’s stock valued at $556,967,000 after acquiring an additional 90,737 shares in the last quarter. Parametric Portfolio Associates LLC lifted its position in Illinois Tool Works by 7.5% in the 3rd quarter. Parametric Portfolio Associates LLC now owns 1,487,337 shares of the industrial products company’s stock valued at $220,066,000 after acquiring an additional 103,127 shares in the last quarter. Old Mutual Global Investors UK Ltd. lifted its position in Illinois Tool Works by 4.6% in the 4th quarter. Old Mutual Global Investors UK Ltd. now owns 1,272,210 shares of the industrial products company’s stock valued at $212,268,000 after acquiring an additional 56,099 shares in the last quarter. Finally, UBS Asset Management Americas Inc. lifted its position in Illinois Tool Works by 35.8% in the 4th quarter. UBS Asset Management Americas Inc. now owns 1,247,440 shares of the industrial products company’s stock valued at $208,135,000 after acquiring an additional 329,115 shares in the last quarter. 77.62% of the stock is currently owned by institutional investors and hedge funds.
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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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