Illinois Tool Works Target Price Raised to $250 by Robert W. Baird

Illinois Tool Works (NYSE:ITW) has seen an increase in its target price from $240.00 to $250.00, as reported by analysts at Robert W. Baird. This change was communicated in a research note released to investors on Thursday. The firm has assigned a "neutral" rating to the stock, which suggests that they believe its performance will largely mirror the market.

Currently, the new target price implies a potential downside of 5.36% from Illinois Tool Works' recent trading price, indicating that the stock may be slightly overvalued compared to its expected performance.

Other Analysts' Insights

In addition to Robert W. Baird's adjustments, several other analysts have also provided insights regarding Illinois Tool Works. StockNews.com downgraded the company's shares from a "buy" to a "hold" rating in a report dated October 10. Conversely, Truist Financial has raised its price target for Illinois Tool Works from $281.00 to $312.00 and assigned a "buy" rating in a recent note. Meanwhile, Barclays has lowered its target price from $217.00 to $215.00, maintaining an "underweight" designation. On the other hand, JPMorgan Chase & Co. has upped their target from $267.00 to $270.00 with an "overweight" rating.

There have been multiple ratings for the stock, with three analysts recommending to sell, six rating it as a hold, two suggesting a buy, and one analyst providing a strong buy rating. Presently, the consensus rating is classified as "Hold" with an average target price of $254.90, according to MarketBeat.

Current Price Performance

On Thursday, shares of Illinois Tool Works opened at $264.16. The company continues to show sound financial metrics, with a debt-to-equity ratio of 2.17, a quick ratio of 0.92 and a current ratio of 1.30. As per the trading patterns, the stock has seen a fifty-day moving average of $254.96 and a 200-day average price of $247.27. Over the past year, shares have reached a low of $221.82 and a high of $271.15. The company's market capitalization stands at approximately $78.43 billion, with a price-to-earnings ratio of 25.90 and a beta of 1.10.

Earnings Performance Overview

For the most recent quarter, Illinois Tool Works reported earnings on October 30 and announced earnings of $2.65 per share. This result exceeded analysts' expectations, which were set at $2.53 per share. The firm achieved a net profit margin of 19.15% and a remarkable return on equity at 99.74%. Total revenues for the quarter amounted to $3.97 billion, slightly below the expected revenue of $4.02 billion, reflecting a year-over-year revenue decline of 1.6%. Analysts anticipate that the company will report earnings per share of 10.13 for the current fiscal year.

Institutional Investment Trends

Recently, numerous hedge funds and institutional investors have adjusted their stakes in Illinois Tool Works. Notably, Norden Group LLC has expanded its holdings by 30.6% in the first quarter, acquiring an additional 407 shares to reach a total of 1,738 shares valued at $466,000. Private Advisor Group LLC also increased its stake by 0.3%, now owning over 41,000 shares worth approximately $11.1 million.

Moreover, Diversify Advisory Services LLC made a new acquisition in the first quarter worth about $579,000, while BOK Financial Private Wealth Inc. invested about $67,000 in a new position. Janney Montgomery Scott LLC also enhanced its holdings by 0.3%. Overall, institutional investors and hedge funds control about 79.77% of the company's shares.

About the Company

Illinois Tool Works Inc. is a well-established manufacturer and seller of industrial products and equipment, operating in various sectors domestically and internationally. The company operates through seven distinct segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.

Illinois, Tool, Works