Illinois Tool Works (ITW) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of Illinois Tool Works (NYSE:ITW) from a hold rating to a buy rating in a research note released on Thursday morning. They currently have $192.00 target price on the industrial products company’s stock.
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. In addition, it initiated its financial guidance for 2018, anticipating GAAP earnings to be within $7.05-$7.25 per share. Organic revenue growth is predicted to be within 3-4% and operating margin to be 25-25.5%. The projections for 2017 (results not yet released) have been reaffirmed, with earnings per share still anticipated to be $6.62-$6.72. Earnings estimates on the stock improved for 2018 in the last 60 days.”
Other equities analysts also recently issued research reports about the company. Argus reissued a buy rating and set a $180.00 price target (up previously from $160.00) on shares of Illinois Tool Works in a research report on Tuesday, October 24th. Wells Fargo & Co set a $170.00 price target on Illinois Tool Works and gave the stock a buy rating in a research report on Monday, October 16th. They noted that the move was a valuation call. Citigroup reissued a buy rating and set a $171.00 price target (up previously from $162.00) on shares of Illinois Tool Works in a research report on Monday, October 9th. Jefferies Group reissued a buy rating and set a $190.00 price target on shares of Illinois Tool Works in a research report on Wednesday, November 29th. Finally, Bank of America started coverage on Illinois Tool Works in a research report on Monday, December 11th. They set a buy rating and a $190.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have assigned a buy rating to the company. The company has a consensus rating of Hold and an average price target of $168.25.
The company also recently announced a quarterly dividend, which was paid on Wednesday, January 10th. Stockholders of record on Friday, December 29th were given a $0.78 dividend. This represents a $3.12 annualized dividend and a dividend yield of 1.81%. The ex-dividend date of this dividend was Thursday, December 28th. Illinois Tool Works’s payout ratio is 47.78%.
In related news, insider Roland M. Martel sold 64,818 shares of the stock in a transaction that occurred on Monday, December 4th. The stock was sold at an average price of $167.41, for a total transaction of $10,851,181.38. Following the sale, the insider now owns 26,222 shares of the company’s stock, valued at $4,389,825.02. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Norman D. Jr. Finch purchased 4,986 shares of Illinois Tool Works stock in a transaction that occurred on Wednesday, October 25th. The shares were bought at an average cost of $156.34 per share, for a total transaction of $779,511.24. Following the transaction, the vice president now directly owns 4,371 shares of the company’s stock, valued at $683,362.14. The disclosure for this purchase can be found here. Insiders sold 208,258 shares of company stock worth $33,653,349 in the last ninety days. 0.90% of the stock is owned by company insiders.
Large investors have recently modified their holdings of the stock. Omnia Family Wealth LLC grew its position in Illinois Tool Works by 0.3% during the second quarter. Omnia Family Wealth LLC now owns 747 shares of the industrial products company’s stock worth $107,000 after buying an additional 2 shares in the last quarter. Harding Loevner LP acquired a new stake in Illinois Tool Works during the second quarter worth approximately $115,000. WFG Advisors LP grew its position in Illinois Tool Works by 24.7% during the second quarter. WFG Advisors LP now owns 812 shares of the industrial products company’s stock worth $116,000 after buying an additional 161 shares in the last quarter. Valeo Financial Advisors LLC acquired a new stake in Illinois Tool Works during the third quarter worth approximately $130,000. Finally, Salem Investment Counselors Inc. grew its position in Illinois Tool Works by 1.9% during the second quarter. Salem Investment Counselors Inc. now owns 900 shares of the industrial products company’s stock worth $129,000 after buying an additional 17 shares in the last quarter. 74.69% of the stock is currently owned by institutional investors and hedge funds.
About Illinois Tool Works
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.
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