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

Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend on Friday, May 3rd, Wall Street Journal reports. Shareholders of record on Friday, June 28th will be paid a dividend of 1.40 per share by the industrial products company on Thursday, July 11th. This represents a $5.60 annualized dividend and a yield of 2.35%. The ex-dividend date is Friday, June 28th.

Illinois Tool Works has raised its dividend payment by an average of 7.0% per year over the last three years and has raised its dividend every year for the last 54 years. Illinois Tool Works has a payout ratio of 51.5% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Price Performance

Shares of Illinois Tool Works stock traded up $0.09 during trading on Wednesday, reaching $238.04. 204,767 shares of the company’s stock were exchanged, compared to its average volume of 1,170,109. Illinois Tool Works has a 1-year low of $217.50 and a 1-year high of $271.15. The firm’s 50-day moving average price is $244.23 and its 200 day moving average price is $254.14. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.94 and a current ratio of 1.32. The company has a market cap of $71.03 billion, a P/E ratio of 23.27, a PEG ratio of 3.54 and a beta of 1.11.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Tuesday, April 30th. The industrial products company reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $0.09. Illinois Tool Works had a return on equity of 97.82% and a net margin of 19.07%. The firm had revenue of $3.97 billion for the quarter, compared to analyst estimates of $4.03 billion. During the same quarter in the previous year, the company posted $2.33 EPS. The business’s revenue was down 1.1% on a year-over-year basis. As a group, research analysts anticipate that Illinois Tool Works will post 10.22 earnings per share for the current year.

Insider Buying and Selling at Illinois Tool Works

In related news, Director David Byron Smith, Jr. purchased 775 shares of the company’s stock in a transaction dated Thursday, June 13th. The shares were purchased at an average cost of $238.82 per share, with a total value of $185,085.50. Following the transaction, the director now directly owns 121,506 shares in the company, valued at approximately $29,018,062.92. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.88% of the company’s stock.

Wall Street Analysts Forecast Growth

ITW has been the topic of several research analyst reports. Citigroup upped their target price on Illinois Tool Works from $258.00 to $269.00 and gave the company a “neutral” rating in a research report on Monday, April 8th. StockNews.com downgraded Illinois Tool Works from a “buy” rating to a “hold” rating in a research note on Friday, June 21st. Stifel Nicolaus increased their price target on Illinois Tool Works from $258.00 to $259.00 and gave the company a “hold” rating in a research report on Wednesday, April 17th. Truist Financial increased their price target on Illinois Tool Works from $303.00 to $305.00 and gave the company a “buy” rating in a research report on Wednesday, May 1st. Finally, Wells Fargo & Company decreased their price target on Illinois Tool Works from $255.00 to $244.00 and set an “underweight” rating for the company in a research report on Wednesday, May 1st. Four investment analysts have rated the stock with a sell rating, three have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, Illinois Tool Works presently has a consensus rating of “Hold” and an average target price of $256.44.

Illinois Tool Works Company Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.