Illinois Tool Works (ITW) Rating Lowered to Hold at Zacks Investment Research

Illinois Tool Works (NYSE:ITW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

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. For 2018, the company anticipates GAAP earnings to be within $7.05-$7.25 per share, organic revenue growth to be 3-4% and operating margin to be 25-25.5%. The projections for 2017 have been reaffirmed, with earnings per share still anticipated to be $6.62-$6.72. However, the company is exposed to headwinds including unfavorable foreign currency movements, industry rivalry, volatilities in input price & supply and economic uncertainties.”

A number of other research firms have also weighed in on ITW. Stifel Nicolaus boosted their target price on shares of Illinois Tool Works from $176.00 to $186.00 and gave the stock a “hold” rating in a report on Tuesday. Bank of America assumed coverage on shares of Illinois Tool Works in a report on Monday, December 11th. They set a “buy” rating and a $190.00 target price on the stock. BMO Capital Markets lowered shares of Illinois Tool Works from an “outperform” rating to a “market perform” rating and set a $180.00 target price on the stock. in a report on Thursday, January 4th. They noted that the move was a valuation call. Royal Bank of Canada reissued a “hold” rating and set a $166.00 target price on shares of Illinois Tool Works in a report on Tuesday, December 5th. Finally, Robert W. Baird reissued a “hold” rating and set a $160.00 target price on shares of Illinois Tool Works in a report on Sunday, December 3rd. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company’s stock. Illinois Tool Works has an average rating of “Hold” and an average target price of $168.25.

Illinois Tool Works (NYSE ITW) traded up $2.10 on Wednesday, reaching $172.42. 1,237,813 shares of the company’s stock were exchanged, compared to its average volume of 962,878. Illinois Tool Works has a 52-week low of $122.61 and a 52-week high of $172.64. The company has a quick ratio of 1.98, a current ratio of 2.41 and a debt-to-equity ratio of 1.48. The company has a market cap of $58,351.46, a price-to-earnings ratio of 26.40, a price-to-earnings-growth ratio of 2.32 and a beta of 1.18.

Illinois Tool Works (NYSE:ITW) last posted its earnings results on Monday, October 23rd. The industrial products company reported $1.85 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.65 by $0.20. Illinois Tool Works had a net margin of 16.12% and a return on equity of 47.21%. The firm had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.57 billion. During the same period in the previous year, the firm posted $1.50 EPS. The company’s revenue for the quarter was up 3.4% compared to the same quarter last year. research analysts expect that Illinois Tool Works will post 6.7 EPS for the current fiscal year.

In other news, insider Steven L. Martindale sold 64,818 shares of the company’s stock in a transaction on Wednesday, October 25th. The shares were sold at an average price of $157.19, for a total value of $10,188,741.42. Following the sale, the insider now directly owns 95,328 shares of the company’s stock, valued at approximately $14,984,608.32. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Harold B. Smith sold 30,000 shares of the company’s stock in a transaction on Friday, December 8th. The shares were sold at an average price of $166.43, for a total transaction of $4,992,900.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 208,258 shares of company stock worth $33,653,349. Insiders own 0.90% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in ITW. Omnia Family Wealth LLC lifted its position in shares of 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 acquiring an additional 2 shares during the period. Private Vista LLC lifted its position in shares of Illinois Tool Works by 13,697.3% during the 2nd quarter. Private Vista LLC now owns 279,534 shares of the industrial products company’s stock valued at $108,000 after acquiring an additional 277,508 shares during the period. Harding Loevner LP acquired a new position in shares of Illinois Tool Works during the 2nd quarter valued at $115,000. WFG Advisors LP lifted its position in shares of Illinois Tool Works by 24.7% during the 2nd quarter. WFG Advisors LP now owns 812 shares of the industrial products company’s stock valued at $116,000 after acquiring an additional 161 shares during the period. Finally, Salem Investment Counselors Inc. lifted its position in shares of 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 acquiring an additional 17 shares during the period. Institutional investors own 74.73% of the company’s stock.

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Illinois Tool Works Company Profile

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.

Analyst Recommendations for Illinois Tool Works (NYSE:ITW)

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