Illinois Tool Works (NYSE:ITW) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Illinois Tool Works (NYSE:ITW) from a hold rating to a sell rating in a research report released on Tuesday morning, Zacks.com reports. They currently have $154.00 price target on the industrial products company’s stock.

According to Zacks, “We believe that Illinois Tool will likely gain from a diversified business structure, enterprise initiatives and skilled management team. For 2019, the company anticipates earnings per share of $7.90-$8.20, up 4-8% year over year. Enterprise strategy is anticipated to boost margins by 100 basis points (bps). The company remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. For 2019, share buybacks are likely to amount $1.5 billion. However, organic sales are predicted to increase 0.5-2.5%, down from previously mentioned 1-3%. Also, high tax rate and unfavorable foreign exchange that will lower earnings by 6 cents in the second quarter remain concerns. In the past three months, the company's shares have underperformed the industry. Earnings estimates for 2019 have declined in the past 60 days.”

Several other research firms have also issued reports on ITW. Argus increased their price target on shares of Waste Management from $110.00 to $115.00 and gave the stock a buy rating in a research report on Friday, April 26th. JPMorgan Chase & Co. reissued a hold rating and set a $137.00 target price on shares of Continental in a research note on Friday, April 26th. UBS Group set a $133.00 price target on shares of LHC Group and gave the stock a buy rating in a report on Friday, May 10th. Citigroup set a $221.00 price objective on shares of 3M and gave the company a buy rating in a report on Friday, April 26th. Finally, Stifel Nicolaus upgraded shares of QUALCOMM from a hold rating to a buy rating and boosted their price target for the stock from $57.00 to $100.00 in a report on Tuesday, April 16th. Five analysts have rated the stock with a sell rating, twelve have issued a hold rating and two have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $140.53.

NYSE:ITW opened at $151.48 on Tuesday. The company has a quick ratio of 1.19, a current ratio of 1.53 and a debt-to-equity ratio of 1.87. The firm has a 50 day moving average price of $148.07. Illinois Tool Works has a 1 year low of $117.75 and a 1 year high of $158.69. The company has a market capitalization of $49.35 billion, a PE ratio of 19.93, a P/E/G ratio of 2.41 and a beta of 1.24.

Illinois Tool Works (NYSE:ITW) last announced its quarterly earnings results on Thursday, April 25th. The industrial products company reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.01. The company had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.64 billion. Illinois Tool Works had a net margin of 17.21% and a return on equity of 72.74%. The firm’s revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.90 EPS. On average, analysts anticipate that Illinois Tool Works will post 7.9 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 10th. Stockholders of record on Friday, June 28th were paid a $1.00 dividend. The ex-dividend date was Thursday, June 27th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.64%. Illinois Tool Works’s dividend payout ratio (DPR) is 52.63%.

In other news, EVP John R. Hartnett sold 14,323 shares of the company’s stock in a transaction on Thursday, May 2nd. The shares were sold at an average price of $153.55, for a total value of $2,199,296.65. Following the completion of the sale, the executive vice president now owns 31,695 shares of the company’s stock, valued at approximately $4,866,767.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Randall J. Scheuneman sold 14,931 shares of the company’s stock in a transaction on Friday, June 7th. The shares were sold at an average price of $150.17, for a total transaction of $2,242,188.27. Following the completion of the sale, the vice president now directly owns 21,603 shares of the company’s stock, valued at approximately $3,244,122.51. The disclosure for this sale can be found here. 0.87% of the stock is currently owned by corporate insiders.

Several institutional investors have recently made changes to their positions in ITW. Hexavest Inc. purchased a new stake in shares of Illinois Tool Works in the second quarter valued at approximately $26,000. WP Advisors LLC acquired a new position in shares of Illinois Tool Works in the first quarter worth $28,000. Weaver Consulting Group acquired a new position in shares of Illinois Tool Works in the first quarter worth $32,000. Mark Sheptoff Financial Planning LLC raised its holdings in shares of Illinois Tool Works by 512.8% in the first quarter. Mark Sheptoff Financial Planning LLC now owns 239 shares of the industrial products company’s stock worth $34,000 after acquiring an additional 200 shares during the last quarter. Finally, Lenox Wealth Management Inc. increased its stake in Illinois Tool Works by 54.1% in the first quarter. Lenox Wealth Management Inc. now owns 285 shares of the industrial products company’s stock valued at $41,000 after purchasing an additional 100 shares during the last quarter. 77.45% of the stock is owned by institutional investors.

Illinois Tool Works Company Profile

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.

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