Illinois Tool Works Inc. (NYSE:ITW) Sees Significant Decrease in Short Interest

Illinois Tool Works Inc. (NYSE:ITW) was the recipient of a large drop in short interest during the month of April. As of April 15th, there was short interest totalling 6,470,000 shares, a drop of 9.1% from the March 31st total of 7,120,000 shares. Currently, 2.2% of the shares of the stock are sold short. Based on an average trading volume of 1,320,000 shares, the days-to-cover ratio is currently 4.9 days.

Insider Activity

In other Illinois Tool Works news, Chairman Ernest Scott Santi sold 50,000 shares of the business’s stock in a transaction that occurred 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 of the company’s stock, valued at approximately $56,235,056.60. The transaction was disclosed in a filing with the SEC, which is available through this link. In other Illinois Tool Works news, Chairman Ernest Scott Santi sold 50,000 shares of Illinois Tool Works stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $254.44, for a total transaction of $12,722,000.00. Following the completion of the sale, the chairman now owns 221,015 shares of the company’s stock, valued at $56,235,056.60. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Sharon Szafranski sold 801 shares of the stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $256.42, for a total value of $205,392.42. Following the transaction, the executive vice president now owns 5,870 shares in the company, valued at $1,505,185.40. The disclosure for this sale can be found here. In the last 90 days, insiders sold 189,471 shares of company stock worth $48,712,316. 1.26% of the stock is currently owned by insiders.

Institutional Trading of Illinois Tool Works

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ITW. Briaud Financial Planning Inc purchased a new position in shares of Illinois Tool Works during the 3rd quarter valued at about $25,000. Turtle Creek Wealth Advisors LLC bought a new position in shares of Illinois Tool Works in the fourth quarter worth approximately $26,000. Frazier Financial Advisors LLC purchased a new stake in shares of Illinois Tool Works in the fourth quarter worth $26,000. Financial Connections Group Inc. bought a new stake in shares of Illinois Tool Works during the 4th quarter valued at $28,000. Finally, Security National Bank purchased a new position in shares of Illinois Tool Works during the 4th quarter valued at $28,000. 79.77% of the stock is owned by hedge funds and other institutional investors.

Illinois Tool Works Stock Performance

Shares of NYSE:ITW traded up $0.96 during midday trading on Monday, reaching $249.24. 1,629,618 shares of the company’s stock traded hands, compared to its average volume of 1,246,454. The company has a debt-to-equity ratio of 2.10, a quick ratio of 0.97 and a current ratio of 1.33. Illinois Tool Works has a one year low of $217.06 and a one year high of $271.15. The company has a market cap of $74.46 billion, a price-to-earnings ratio of 25.59, a P/E/G ratio of 3.65 and a beta of 1.13. The stock has a 50 day moving average of $260.04 and a 200 day moving average of $251.59.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings data on Thursday, February 1st. The industrial products company reported $2.42 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $3.98 billion during the quarter, compared to analysts’ expectations of $4.01 billion. During the same period in the previous year, the company earned $2.34 earnings per share. The firm’s quarterly revenue was up .3% on a year-over-year basis. As a group, equities research analysts anticipate that Illinois Tool Works will post 10.12 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 11th. Investors of record on Friday, March 29th were issued a $1.40 dividend. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date of this dividend was Wednesday, March 27th. Illinois Tool Works’s payout ratio is 57.49%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ITW. Wells Fargo & Company cut Illinois Tool Works from an “equal weight” rating to an “underweight” rating and dropped their price objective for the stock from $277.00 to $240.00 in a report on Tuesday, February 6th. Citigroup boosted their price objective on shares of Illinois Tool Works from $258.00 to $269.00 and gave the company a “neutral” rating in a research report on Monday, April 8th. Stifel Nicolaus raised their target price on shares of Illinois Tool Works from $258.00 to $259.00 and gave the stock a “hold” rating in a research report on Wednesday, April 17th. Truist Financial assumed coverage on shares of Illinois Tool Works in a research note on Thursday, March 14th. They issued a “buy” rating and a $301.00 price target for the company. Finally, Barclays lifted their price objective on Illinois Tool Works from $224.00 to $230.00 and gave the company an “underweight” rating in a research report on Tuesday, April 2nd. Four investment analysts have rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $257.00.

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.