The Vanguard Group, Inc. recently announced the acquisition of new stake in Illinois Tool Works, Inc. (NYSE:ITW). The institutional investor has increased its shareholding in the Industrials company by 5.17% to 25.0 million shares with purchase of 1.23 million shares. This fresh investment now brings its stake to 8.31% valued currently at $6.05 billion. In addition, Northern Trust Investments, Inc. raised its holdings by 0.22 million to 12.38 million shares. And Charles Schwab Investment Managem has lifted its position by 1.43% or 97568.0 shares – to 6.9 million shares.
With over 0.49 million Illinois Tool Works, Inc. (ITW) shares trading Friday and a closing price of $261.91 on the day, the dollar volume was approximately $129.4 million. The shares have shown a positive half year performance of 6.78% and its price on 12/22/23 gained nearly 0.55%. Currently, there are 305.00M common shares owned by the public and among those 299.91M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for ITW have a consensus price objective of $240.44. The analysts have set the share’s price value over the next 12 months at a high of $277.00 and a low of $185.00. The average price target is -8.93% below its recent price level and a downside to the estimated low will see the stock lose -41.57% over that period. But an upside of 5.45% will see the stock hit the forecast high price target while median target price for the stock is $242.00.
Insiders at the company have transacted a total of 58 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 34 of these insider trades were purchases, accounting for 352,699 shares. Insider sales of the common stock occurred on 24 occasions, with total insider shares sold totaling 323,722 shares.
The top 3 mutual fund holders in Illinois Tool Works, Inc. are Vanguard Total Stock Market ETF, Vanguard 500 Index Fund, and Schwab US Dividend Equity ETF. Vanguard Total Stock Market ETF owns 9.0 million shares of the company’s stock, all valued at over $2.18 billion. The company bought an additional 13679.0 shares recently to bring their total holdings to about 2.99% of the shares outstanding. Vanguard 500 Index Fund bought 31236.0 shares to see its total holdings expand to 6.64 million shares valued at over $1.61 billion and representing 2.21% of the shares outstanding. Schwab US Dividend Equity ETF sold 33384.0 shares to bring its total holdings to over 4.41 million shares at a value of $1.07 billion. Schwab US Dividend Equity ETF now owns shares totaling to 1.47% of the shares outstanding.
Shares of Illinois Tool Works, Inc. (NYSE: ITW) opened at $261.21, up $0.72 from a prior closing price of $260.49. However, the script later moved the day high at 263.16, up 0.55%. The company’s stock has a 5-day price change of 1.38% and 11.70% over the past three months. ITW shares are trading 18.89% year to date (YTD), with the 12-month market performance up to 17.81% higher. It has a 12-month low price of $216.43 and touched a high of $264.19 over the same period. ITW has an average intraday trading volume of 1.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.86%, 9.89%, and 9.94% respectively.
Institutional ownership of Illinois Tool Works, Inc. (NYSE: ITW) shares accounts for 82.96% of the company’s 305.00M shares outstanding. Mutual fund holders own 33.49%, while other institutional holders and individual stakeholders account for 49.93% and 12.63% respectively.
It has a market capitalization of $78.81B and a beta (3y monthly) value of 1.16. The stock’s trailing 12-month PE ratio is 25.42, while the earnings-per-share (ttm) stands at $10.30. The company has a PEG of 9.24 and a Quick Ratio of 1.13 with the debt-to-equity ratio at 2.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.05% over the week and 1.31% over the month.
Analysts forecast that Illinois Tool Works, Inc. (ITW) will achieve an EPS of $2.39 for the current quarter, $2.41 for the next quarter and $10.19 for 2024. The lowest estimate earnings-per-share for the quarter is $2.29 while analysts give the company a high EPS estimate of $2.46. Comparatively, EPS for the current quarter was $2.95 a year ago. Earnings per share for the fiscal year are expected to decrease by -0.27%, and 3.93% over the next financial year. EPS should shrink at an annualized rate of 2.75% over the next five years, compared to 14.98% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Illinois Tool Works, Inc. (ITW) as a “Hold” at a consensus score of 3.21. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 15 of the 19 advise that investors “hold,” and 3 rated it as a “Sell.”
Looking at the support for the ITW, a number of firms have released research notes about the stock. Vertical Research stated their Hold rating for the stock in a research note on January 03, 2023, with the firm’s price target at $240-$220.
