Illinois Tool Works Inc. Plans Quarterly Dividend of $1.40 (NYSE:ITW)

Illinois Tool Works Inc. (NYSE:ITWGet Free Report) announced a quarterly dividend on Friday, February 9th, RTT News reports. Investors of record on Friday, March 29th will be given a dividend of 1.40 per share by the industrial products company on Thursday, April 11th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.19%.

Illinois Tool Works has raised its dividend payment by an average of 7.0% per year over the last three years and has increased its dividend annually for the last 54 consecutive years. Illinois Tool Works has a payout ratio of 51.4% meaning its dividend is sufficiently covered by earnings. Analysts expect Illinois Tool Works to earn $10.89 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 51.4%.

Illinois Tool Works Stock Performance

Shares of NYSE ITW opened at $255.75 on Friday. The stock has a market cap of $76.95 billion, a price-to-earnings ratio of 26.26, a PEG ratio of 4.39 and a beta of 1.15. The company has a 50 day simple moving average of $256.70 and a two-hundred day simple moving average of $244.20. Illinois Tool Works has a 12 month low of $217.06 and a 12 month high of $267.12. The company has a current ratio of 1.33, a quick ratio of 0.97 and a debt-to-equity ratio of 2.10.

Illinois Tool Works (NYSE:ITWGet Free Report) last posted its earnings results on Thursday, February 1st. The industrial products company reported $2.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.41 by $0.01. Illinois Tool Works had a net margin of 18.36% and a return on equity of 96.60%. The company had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the previous year, the firm posted $2.34 earnings per share. The firm’s quarterly revenue was up .3% on a year-over-year basis. As a group, analysts predict that Illinois Tool Works will post 10.12 earnings per share for the current year.

Insider Activity

In other Illinois Tool Works news, Chairman Ernest Scott Santi sold 50,000 shares of the company’s stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $254.44, for a total value of $12,722,000.00. Following the completion of the transaction, the chairman now owns 221,015 shares in the company, valued at $56,235,056.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.88% of the company’s stock.

Institutional Trading of Illinois Tool Works

A number of hedge funds have recently added to or reduced their stakes in ITW. Quarry LP raised its position in Illinois Tool Works by 52.7% in the first quarter. Quarry LP now owns 142 shares of the industrial products company’s stock worth $35,000 after acquiring an additional 49 shares in the last quarter. Shepherd Financial Partners LLC lifted its position in shares of Illinois Tool Works by 1.8% during the 4th quarter. Shepherd Financial Partners LLC now owns 2,832 shares of the industrial products company’s stock valued at $624,000 after acquiring an additional 49 shares during the period. PFS Investments Inc. raised its holdings in Illinois Tool Works by 3.6% during the fourth quarter. PFS Investments Inc. now owns 1,424 shares of the industrial products company’s stock worth $314,000 after purchasing an additional 50 shares during the last quarter. SVB Wealth LLC raised its stake in shares of Illinois Tool Works by 0.4% during the 1st quarter. SVB Wealth LLC now owns 17,691 shares of the industrial products company’s stock worth $3,704,000 after buying an additional 62 shares during the last quarter. Finally, Veritable L.P. raised its stake in shares of Illinois Tool Works by 0.3% during the 1st quarter. Veritable L.P. now owns 18,812 shares of the industrial products company’s stock worth $4,580,000 after buying an additional 64 shares during the last quarter. 79.56% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ITW has been the subject of a number of recent research reports. Bank of America downgraded Illinois Tool Works from a “neutral” rating to an “underperform” rating and cut their target price for the stock from $260.00 to $235.00 in a research note on Wednesday, January 10th. Wells Fargo & Company cut shares of Illinois Tool Works from an “equal weight” rating to an “underweight” rating and dropped their price target for the company from $277.00 to $240.00 in a research note on Tuesday, February 6th. Stifel Nicolaus increased their price objective on Illinois Tool Works from $238.00 to $239.00 and gave the stock a “hold” rating in a research report on Tuesday, January 23rd. JPMorgan Chase & Co. reduced their target price on Illinois Tool Works from $265.00 to $255.00 and set an “overweight” rating on the stock in a research report on Monday, October 16th. Finally, Citigroup raised their price objective on Illinois Tool Works from $244.00 to $256.00 and gave the stock a “neutral” rating in a research report on Monday, December 11th. Five equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $239.33.

Get Our Latest Analysis on ITW

About Illinois Tool Works

(Get Free Report)

Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

Further Reading

Dividend History for Illinois Tool Works (NYSE:ITW)

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