Illinois Tool Works (NYSE:ITW) Stock Gets Price Target Cut from Citigroup

Illinois Tool Works (NYSE:ITW) had its price target lowered by Citigroup from $317.00 to $310.00 in a research report released on Wednesday,Benzinga reports. The brokerage currently has a neutral rating on the industrial products company’s stock.

ITW has been the topic of several other reports. Robert W. Baird lifted their price target on shares of Illinois Tool Works from $278.00 to $297.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Weiss Ratings downgraded shares of Illinois Tool Works from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. The Goldman Sachs Group restated a “sell” rating and issued a $270.00 price objective on shares of Illinois Tool Works in a report on Tuesday. UBS Group set a $277.00 price objective on Illinois Tool Works in a report on Friday, October 9th. Finally, Deutsche Bank Aktiengesellschaft lowered their target price on Illinois Tool Works from $287.00 to $281.00 and set a “hold” rating on the stock in a research report on Wednesday, September 30th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Illinois Tool Works has a consensus rating of “Reduce” and an average target price of $276.33.

Illinois Tool Works Stock Performance

Shares of Illinois Tool Works stock opened at $279.02 on Wednesday. The company has a debt-to-equity ratio of 2.28, a current ratio of 1.29 and a quick ratio of 0.81. The firm has a market cap of $79.46 billion, a price-to-earnings ratio of 24.87, a price-to-earnings-growth ratio of 3.09 and a beta of 0.96. The stock’s 50-day moving average is $271.41 and its 200-day moving average is $270.69. Illinois Tool Works has a one year low of $238.82 and a one year high of $303.15.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Tuesday, October 27th. The industrial products company reported $3.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.97 by $0.03. The business had revenue of $4.24 billion during the quarter, compared to the consensus estimate of $4.26 billion. Illinois Tool Works had a return on equity of 103.35% and a net margin of 19.39%. Illinois Tool Works’s quarterly revenue was up 4.5% on a year-over-year basis. During the same period last year, the company earned $2.81 earnings per share. Equities analysts predict that Illinois Tool Works will post 11.49 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were issued a $1.72 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a yield of 2.5%. This is a positive change from Illinois Tool Works’s previous quarterly dividend of $1.61. Illinois Tool Works’s payout ratio is currently 61.32%.

Insider Buying and Selling at Illinois Tool Works

In other news, Director Ernest Santi sold 41,431 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, the director owned 266,288 shares of the company’s stock, valued at approximately $76,448,621.92. The trade was a 13.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Matteo C. Pigozzo sold 277 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the transaction, the chief accounting officer owned 3,394 shares in the company, valued at $981,612.68. This trade represents a 7.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is owned by company insiders.

Hedge Funds Weigh In On Illinois Tool Works

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Illinois Tool Works during the 2nd quarter worth approximately $6,296,349,000. State Street Corp lifted its stake in shares of Illinois Tool Works by 1.0% in the 2nd quarter. State Street Corp now owns 12,788,570 shares of the industrial products company’s stock valued at $3,479,219,000 after purchasing an additional 128,089 shares during the period. Bank of America Corp DE lifted its stake in shares of Illinois Tool Works by 2.5% in the 1st quarter. Bank of America Corp DE now owns 3,005,659 shares of the industrial products company’s stock valued at $782,343,000 after purchasing an additional 72,951 shares during the period. Bank of New York Mellon Corp purchased a new stake in Illinois Tool Works during the second quarter worth $603,166,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Illinois Tool Works by 3.0% during the first quarter. Dimensional Fund Advisors LP now owns 2,045,009 shares of the industrial products company’s stock worth $532,261,000 after buying an additional 60,009 shares in the last quarter. Institutional investors own 79.77% of the company’s stock.

Illinois Tool Works News Roundup

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: ITW declared a $1.72-per-share quarterly dividend, payable January 15, 2027, to shareholders of record on December 31, 2026. The payout reinforces the company’s commitment to returning cash to shareholders and its reputation as a long-term income investment. ITW Board of Directors Declares Quarterly Dividend
• Positive Sentiment: Recent earnings provided some support: ITW exceeded third-quarter earnings expectations, reporting $3.00 per share versus the $2.97 consensus estimate, while revenue grew approximately 4.5% year over year. The results suggest resilient profitability despite some sales pressure.
• Neutral Sentiment: Coverage of ITW’s third-quarter earnings call highlights continued analyst focus on demand trends, margins and the company’s outlook. Investors are looking for clarity on whether growth can accelerate across its industrial businesses. The top 5 analyst questions from Illinois Tool Works’s Q3 earnings call
• Negative Sentiment: Citigroup’s pessimistic forecast adds pressure to the stock’s valuation narrative, particularly after ITW’s shares had traded near their 12-month high. A premium earnings multiple leaves less room for disappointing growth or guidance. Citigroup Issues Pessimistic Forecast for Illinois Tool Works Stock Price
• Negative Sentiment: A recent comparison concluded that 3M currently offers stronger stock gains, earnings-growth prospects and valuation than ITW, potentially encouraging investors to favor competing industrial names. 3M vs. Illinois Tool: Which Industrial Conglomerate Stock is a Stronger Pick?

About Illinois Tool Works

Illinois Tool Works Inc (NYSE: ITW) is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and systems for customers in a range of industries. Founded in 1912 and headquartered in Glenview, Illinois, the company serves markets worldwide through a portfolio of highly engineered businesses.

ITW’s operations include food equipment, automotive components, welding products, test and measurement equipment, electronics materials, polymers and fluids, construction products, and specialty products.