Zacks Investment Research Lowers Illinois Tool Works Inc. (ITW) to Sell
According to Zacks, “We believe that positive impacts from Illinois Tool's organic and inorganic growth tactics, its long-term Enterprise Strategy and sound capital allocation schemes are more than offset by risks arising from near-term headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties. For 2016, the company predicts organic revenue to grow 1-2%, down from the previous expectations, given the difficult operating conditions in the Welding segment.”
Several other research firms also recently commented on ITW. Credit Suisse Group AG set a $114.00 price target on shares of Illinois Tool Works and gave the stock a hold rating in a research note on Thursday, July 21st. Royal Bank Of Canada boosted their price target on shares of Illinois Tool Works from $101.00 to $104.00 and gave the stock a sector perform rating in a research note on Thursday, July 21st. Oppenheimer Holdings Inc. reiterated a buy rating on shares of Illinois Tool Works in a research note on Tuesday, June 7th. Deutsche Bank AG reiterated a buy rating and set a $102.00 target price on shares of Illinois Tool Works in a research note on Thursday, August 25th. Finally, RBC Capital Markets reiterated a sector perform rating and set a $104.00 target price (up previously from $101.00) on shares of Illinois Tool Works in a research note on Sunday, July 24th. One analyst has rated the stock with a sell rating, seven have given a hold rating and seven have given a buy rating to the stock. Illinois Tool Works has a consensus rating of Hold and a consensus price target of $108.43.
Illinois Tool Works (NYSE:ITW) opened at 117.20 on Wednesday. The stock has a market cap of $41.60 billion, a price-to-earnings ratio of 21.82 and a beta of 1.11. Illinois Tool Works has a 52 week low of $79.15 and a 52 week high of $123.50. The company has a 50-day moving average price of $118.80 and a 200-day moving average price of $110.28.
Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings results on Wednesday, July 20th. The company reported $1.46 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.40 by $0.06. The business earned $3.43 billion during the quarter, compared to the consensus estimate of $3.41 billion. Illinois Tool Works had a net margin of 14.65% and a return on equity of 38.15%. The company’s quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.30 earnings per share. Equities research analysts anticipate that Illinois Tool Works will post $5.62 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Thursday, October 6th. Stockholders of record on Friday, September 30th were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 2.22%. This is a positive change from Illinois Tool Works’s previous quarterly dividend of $0.55. The ex-dividend date of this dividend was Wednesday, September 28th. Illinois Tool Works’s payout ratio is 48.42%.
In other news, VP Randall J. Scheuneman sold 15,641 shares of the business’s stock in a transaction dated Thursday, July 21st. The shares were sold at an average price of $114.21, for a total transaction of $1,786,358.61. Following the transaction, the vice president now directly owns 19,791 shares in the company, valued at $2,260,330.11. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Sundaram Nagarajan sold 4,560 shares of the business’s stock in a transaction dated Tuesday, July 12th. The stock was sold at an average price of $110.00, for a total transaction of $501,600.00. Following the transaction, the executive vice president now owns 24,777 shares in the company, valued at $2,725,470. The disclosure for this sale can be found here. Insiders own 0.80% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of ITW. Hudock Capital Group LLC raised its position in shares of Illinois Tool Works by 0.5% in the second quarter. Hudock Capital Group LLC now owns 1,037 shares of the company’s stock worth $108,000 after buying an additional 5 shares during the period. Nadler Financial Group Inc. raised its position in shares of Illinois Tool Works by 0.4% in the third quarter. Nadler Financial Group Inc. now owns 3,223 shares of the company’s stock worth $386,000 after buying an additional 12 shares during the period. PacWest Financial Management Inc raised its position in shares of Illinois Tool Works by 0.4% in the second quarter. PacWest Financial Management Inc now owns 4,470 shares of the company’s stock worth $466,000 after buying an additional 20 shares during the period. Albert D Mason Inc. raised its position in shares of Illinois Tool Works by 0.3% in the second quarter. Albert D Mason Inc. now owns 6,690 shares of the company’s stock worth $697,000 after buying an additional 20 shares during the period. Finally, Washington Trust Bank raised its position in shares of Illinois Tool Works by 1.8% in the second quarter. Washington Trust Bank now owns 1,391 shares of the company’s stock worth $145,000 after buying an additional 25 shares during the period. Institutional investors and hedge funds own 74.90% of the company’s stock.
Illinois Tool Works Company Profile
Illinois Tool Works Inc (ITW) is a manufacturer of a range of industrial products and equipment. The Company operates through seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products and Specialty Products. It produces components and fasteners for automotive-related applications; equipment, consumables and related software for testing and measuring of materials and structures, and equipment and consumables used in the production of electronic subassemblies and microelectronics; adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance; arc welding equipment, consumables and accessories for a range of industrial and commercial applications, and beverage packaging equipment and consumables, product coding and marking equipment, and consumables, and appliance components and fasteners.
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