Zacks Investment Research upgraded shares of Illinois Tool Works (NYSE:ITW) from a hold rating to a buy rating in a research report sent to investors on Thursday. They currently have $192.00 price objective on the industrial products company’s stock.
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. In addition, it initiated its financial guidance for 2018, anticipating GAAP earnings to be within $7.05-$7.25 per share. Organic revenue growth is predicted to be within 3-4% and operating margin to be 25-25.5%. The projections for 2017 (results not yet released) have been reaffirmed, with earnings per share still anticipated to be $6.62-$6.72. Earnings estimates on the stock improved for 2018 in the last 60 days.”
ITW has been the subject of several other research reports. Argus reaffirmed a buy rating and set a $180.00 price target (up previously from $160.00) on shares of Illinois Tool Works in a research note on Tuesday, October 24th. BMO Capital Markets lifted their price target on Illinois Tool Works to $180.00 and gave the stock an outperform rating in a research note on Wednesday, December 6th. Stifel Nicolaus lifted their price target on Illinois Tool Works from $176.00 to $186.00 and gave the stock a hold rating in a research note on Tuesday, January 16th. Credit Suisse Group dropped their price target on Illinois Tool Works from $142.00 to $140.00 and set a neutral rating for the company in a research note on Tuesday, October 24th. Finally, Royal Bank of Canada reaffirmed a sector perform rating and set a $155.00 price target (up previously from $143.00) on shares of Illinois Tool Works in a research note on Friday, October 20th. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $168.25.
Illinois Tool Works (NYSE:ITW) traded up $2.10 during trading on Thursday, reaching $172.42. The company had a trading volume of 1,234,108 shares, compared to its average volume of 962,878. Illinois Tool Works has a twelve month low of $123.15 and a twelve month 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 stock has a market capitalization of $59,070.92, a PE ratio of 26.40, a price-to-earnings-growth ratio of 2.35 and a beta of 1.18.
Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Monday, October 23rd. The industrial products company reported $1.85 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.65 by $0.20. Illinois Tool Works had a return on equity of 47.21% and a net margin of 16.12%. The firm had revenue of $3.62 billion during the quarter, compared to analyst estimates of $3.57 billion. During the same quarter in the previous year, the company posted $1.50 earnings per share. The company’s revenue was up 3.4% compared to the same quarter last year. equities research analysts predict that Illinois Tool Works will post 6.7 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Wednesday, January 10th. Stockholders of record on Friday, December 29th were paid a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.81%. The ex-dividend date of this dividend was Thursday, December 28th. Illinois Tool Works’s dividend payout ratio (DPR) is presently 47.78%.
In other news, insider Steven L. Martindale sold 64,818 shares of the business’s stock in a transaction dated Wednesday, October 25th. The stock was sold at an average price of $157.19, for a total value of $10,188,741.42. Following the completion of the sale, the insider now owns 95,328 shares of the company’s stock, valued at approximately $14,984,608.32. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Harold B. Smith sold 30,000 shares of the business’s stock in a transaction dated Friday, December 8th. The shares were sold at an average price of $166.43, for a total value of $4,992,900.00. The disclosure for this sale can be found here. In the last three months, insiders sold 208,258 shares of company stock valued at $33,653,349. 0.90% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ITW. Omnia Family Wealth LLC raised its position in 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 valued at $107,000 after purchasing an additional 2 shares during the last quarter. Hudock Capital Group LLC raised its position in Illinois Tool Works by 0.5% during the 2nd quarter. Hudock Capital Group LLC now owns 1,059 shares of the industrial products company’s stock valued at $151,000 after purchasing an additional 5 shares during the last quarter. Laurel Wealth Advisors Inc. raised its position in Illinois Tool Works by 0.3% during the 2nd quarter. Laurel Wealth Advisors Inc. now owns 3,638 shares of the industrial products company’s stock valued at $521,000 after purchasing an additional 10 shares during the last quarter. Rowland & Co. Investment Counsel ADV raised its position in Illinois Tool Works by 0.4% during the 2nd quarter. Rowland & Co. Investment Counsel ADV now owns 3,607 shares of the industrial products company’s stock valued at $518,000 after purchasing an additional 13 shares during the last quarter. Finally, Salem Investment Counselors Inc. raised its position in 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 valued at $129,000 after purchasing an additional 17 shares during the last quarter. 74.73% of the stock is owned by institutional investors.
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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