Illinois Tool Works Inc. Plans Quarterly Dividend of $1.40 (NYSE:ITW)

Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend on Monday, May 6th, Wall Street Journal reports. Investors of record on Friday, June 28th will be paid a dividend of 1.40 per share by the industrial products company on Thursday, July 11th. This represents a $5.60 annualized dividend and a yield of 2.28%. The ex-dividend date is Friday, June 28th.

Illinois Tool Works has increased its dividend payment by an average of 7.0% annually over the last three years and has raised its dividend every year for the last 54 years. Illinois Tool Works has a payout ratio of 51.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Illinois Tool Works to earn $10.92 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 51.3%.

Illinois Tool Works Price Performance

NYSE:ITW traded up $1.27 during mid-day trading on Monday, hitting $245.19. 756,535 shares of the stock traded hands, compared to its average volume of 1,252,292. The business’s 50-day moving average price is $258.75 and its 200 day moving average price is $252.03. The company has a market cap of $73.25 billion, a PE ratio of 24.06, a price-to-earnings-growth ratio of 3.59 and a beta of 1.14. Illinois Tool Works has a 12-month low of $217.06 and a 12-month high of $271.15. The company has a quick ratio of 0.94, a current ratio of 1.32 and a debt-to-equity ratio of 2.07.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings data on Tuesday, April 30th. The industrial products company reported $2.44 EPS for the quarter, beating the consensus estimate of $2.35 by $0.09. Illinois Tool Works had a net margin of 19.07% and a return on equity of 97.82%. The company had revenue of $3.97 billion during the quarter, compared to analysts’ expectations of $4.03 billion. During the same quarter in the previous year, the company earned $2.33 earnings per share. Illinois Tool Works’s revenue for the quarter was down 1.1% on a year-over-year basis. On average, analysts expect that Illinois Tool Works will post 10.29 EPS for the current fiscal year.

Insider Activity

In other news, Chairman Ernest Scott Santi sold 50,000 shares of the stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $254.44, for a total value of $12,722,000.00. Following the transaction, the chairman now owns 221,015 shares in the company, valued at approximately $56,235,056.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other Illinois Tool Works news, Chairman Ernest Scott Santi sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $254.44, for a total transaction of $12,722,000.00. Following the sale, the chairman now owns 221,015 shares in the company, valued at approximately $56,235,056.60. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Sharon Szafranski sold 801 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $256.42, for a total transaction of $205,392.42. Following the sale, the executive vice president now owns 5,870 shares in the company, valued at approximately $1,505,185.40. The disclosure for this sale can be found here. Insiders have sold a total of 139,471 shares of company stock valued at $35,970,816 in the last 90 days. 0.88% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Truist Financial boosted their price target on shares of Illinois Tool Works from $303.00 to $305.00 and gave the stock a “buy” rating in a research note on Wednesday, May 1st. Barclays lowered their price objective on shares of Illinois Tool Works from $230.00 to $229.00 and set an “underweight” rating for the company in a report on Thursday. StockNews.com upgraded shares of Illinois Tool Works from a “hold” rating to a “buy” rating in a report on Wednesday, May 1st. Bank of America lowered shares of Illinois Tool Works from a “neutral” rating to an “underperform” rating and lowered their price target for the company from $260.00 to $235.00 in a report on Wednesday, January 10th. Finally, Stifel Nicolaus upped their target price on shares of Illinois Tool Works from $258.00 to $259.00 and gave the stock a “hold” rating in a research report on Wednesday, April 17th. Four analysts have rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $257.78.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.