Illinois Tool Works (NYSE: ITW) has seen its target price raised from $275.00 to $280.00 by Truist Financial, according to a research report released on Wednesday. The report indicates a hold rating on the industrial products company’s stock. This adjustment comes amid a broader assessment of the stock’s performance by various analysts.
Recent analyses from other research firms present a mixed outlook. Evercore lowered its target price for Illinois Tool Works from $261.00 to $253.00, assigning an “underperform” rating. Conversely, Robert W. Baird established a target of $278.00, while Citigroup increased its target from $271.00 to $284.00, maintaining a “neutral” rating.
On the other hand, the Goldman Sachs Group reaffirmed a “sell” rating with a target of $253.00, and Wells Fargo & Company raised its price objective from $250.00 to $270.00, labeling the stock as “underweight.” Currently, two analysts rate the stock as a Buy, seven as Hold, and five as Sell. According to MarketBeat.com, Illinois Tool Works has an average rating of “Reduce” and a target price of $270.69.
Quarterly Earnings Report and Financial Performance
Illinois Tool Works recently reported its quarterly earnings on February 3, 2024. The company achieved earnings per share of $2.72, surpassing the consensus estimate of $2.69 by $0.03. Revenue for the quarter reached $4.09 billion, slightly above the anticipated $4.07 billion. The company’s return on equity stood at 95.16%, with a net margin of 19.11%. Year-over-year revenue increased by 4.1%, compared to $2.54 earnings per share during the same quarter last year.
Looking ahead, Illinois Tool Works has projected its fiscal year 2026 guidance at $11.000 to $11.400 earnings per share. Analysts expect the company to report earnings of $10.39 per share for the current year.
Insider Activity and Institutional Investments
In related news, Ernest Scott Santi, a director at Illinois Tool Works, sold 167,345 shares on February 4, 2024, at an average price of $290.93, resulting in a total transaction value of approximately $48.7 million. Following this sale, Santi retains 258,766 shares valued at around $75.3 million, which reflects a 39.27% decrease in ownership. This transaction has been disclosed in a filing with the U.S. Securities and Exchange Commission.
Institutional investors have also adjusted their stakes in Illinois Tool Works. Vanguard Group Inc. increased its holdings by 0.7% in the fourth quarter, now owning 26,887,218 shares valued at approximately $6.62 billion. State Street Corp. raised its stake by 0.9%, owning 12,476,310 shares worth about $3.10 billion. Similarly, Geode Capital Management LLC boosted its holdings by 1.9%, while Capital Research Global Investors raised its position by 3.0%.
Overall, institutional investors and hedge funds collectively own 79.77% of Illinois Tool Works’ stock, indicating significant confidence in the company’s future prospects.
Illinois Tool Works is a diversified industrial manufacturer, providing a wide range of engineered products and solutions for various industries, including automotive, construction, and foodservice. The company’s decentralized business model allows for focused management on niche product lines and strong customer relationships, positioning it well within competitive markets.
