Illinois Tool Works (NYSE:ITW) Shares Gap Up After Earnings Beat

Illinois Tool Works Inc. (NYSE:ITW)’s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $248.02, but opened at $255.44. Illinois Tool Works shares last traded at $250.20, with a volume of 372,747 shares traded.

The industrial products company reported $2.54 EPS for the quarter, beating analysts’ consensus estimates of $2.45 by $0.09. Illinois Tool Works had a return on equity of 99.74% and a net margin of 19.15%. The business had revenue of $4.03 billion during the quarter, compared to analysts’ expectations of $4.08 billion. During the same quarter in the prior year, the firm earned $2.41 earnings per share. The business’s revenue was down 1.2% compared to the same quarter last year.

Illinois Tool Works Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 11th. Investors of record on Friday, June 28th were issued a $1.40 dividend. The ex-dividend date was Friday, June 28th. This represents a $5.60 annualized dividend and a dividend yield of 2.31%. Illinois Tool Works’s dividend payout ratio is presently 55.23%.

Analysts Set New Price Targets

ITW has been the topic of several analyst reports. StockNews.com upgraded Illinois Tool Works from a “hold” rating to a “buy” rating in a report on Saturday, July 20th. JPMorgan Chase & Co. increased their price target on shares of Illinois Tool Works from $267.00 to $270.00 and gave the company an “overweight” rating in a research note on Wednesday. Citigroup upped their price objective on Illinois Tool Works from $258.00 to $269.00 and gave the company a “neutral” rating in a report on Monday, April 8th. Jefferies Financial Group decreased their price target on Illinois Tool Works from $275.00 to $240.00 and set a “hold” rating on the stock in a research note on Thursday, July 11th. Finally, Truist Financial dropped their target price on shares of Illinois Tool Works from $283.00 to $281.00 and set a “buy” rating for the company in a report on Wednesday. Four analysts have rated the stock with a sell rating, three have given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, Illinois Tool Works currently has an average rating of “Hold” and an average price target of $253.00.

Insider Buying and Selling

In other news, Director David Byron Smith, Jr. acquired 775 shares of Illinois Tool Works stock in a transaction dated Thursday, June 13th. The shares were acquired at an average cost of $238.82 per share, for a total transaction of $185,085.50. Following the acquisition, the director now owns 121,506 shares of the company’s stock, valued at $29,018,062.92. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.88% of the stock is owned by insiders.

Institutional Investors Weigh In On Illinois Tool Works

Institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Illinois Tool Works in the fourth quarter valued at $818,408,000. Corient Private Wealth LLC increased its position in Illinois Tool Works by 122.7% during the fourth quarter. Corient Private Wealth LLC now owns 629,636 shares of the industrial products company’s stock worth $164,927,000 after buying an additional 346,919 shares during the period. International Assets Investment Management LLC lifted its stake in Illinois Tool Works by 23,183.6% in the fourth quarter. International Assets Investment Management LLC now owns 315,260 shares of the industrial products company’s stock valued at $82,579,000 after buying an additional 313,906 shares during the last quarter. Confluence Investment Management LLC acquired a new stake in shares of Illinois Tool Works in the first quarter valued at approximately $65,747,000. Finally, Pinebridge Investments L.P. grew its position in shares of Illinois Tool Works by 380.7% during the fourth quarter. Pinebridge Investments L.P. now owns 261,590 shares of the industrial products company’s stock worth $68,521,000 after acquiring an additional 207,167 shares during the last quarter. Hedge funds and other institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Stock Performance

The stock has a market cap of $72.29 billion, a PE ratio of 24.39, a P/E/G ratio of 3.74 and a beta of 1.10. The firm’s 50-day moving average is $240.85 and its 200 day moving average is $251.19. The company has a debt-to-equity ratio of 2.17, a quick ratio of 0.94 and a current ratio of 1.30.

Illinois Tool Works Company Profile

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.