Illinois Tool Works Inc. (NYSE:ITW) Plans Quarterly Dividend of $1.50

Illinois Tool Works Inc. (NYSE:ITW) announced a quarterly dividend on Monday, August 5th, Wall Street Journal reports. Investors of record on Monday, September 30th will be paid a dividend of 1.50 per share by the industrial products company on Friday, October 11th. This represents a $6.00 dividend on an annualized basis and a yield of 2.51%. The ex-dividend date is Monday, September 30th. This is an increase from Illinois Tool Works’s previous quarterly dividend of $1.40.

Illinois Tool Works has increased its dividend by an average of 7.0% annually over the last three years and has raised its dividend every year for the last 54 years. Illinois Tool Works has a dividend payout ratio of 51.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Illinois Tool Works to earn $10.76 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 52.0%.

Illinois Tool Works Stock Down 1.8 %

ITW stock traded down $4.49 during trading on Monday, reaching $239.36. The stock had a trading volume of 1,189,982 shares, compared to its average volume of 1,177,647. Illinois Tool Works has a 1-year low of $217.50 and a 1-year high of $271.15. The company has a current ratio of 1.30, a quick ratio of 0.94 and a debt-to-equity ratio of 2.17. The company has a market capitalization of $71.43 billion, a P/E ratio of 23.55, a PEG ratio of 3.80 and a beta of 1.10. The firm has a fifty day moving average price of $240.94 and a 200 day moving average price of $251.05.

Illinois Tool Works (NYSE:ITW) last issued its earnings results on Tuesday, July 30th. The industrial products company reported $2.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.09. Illinois Tool Works had a net margin of 19.15% and a return on equity of 99.74%. The business had revenue of $4.03 billion for the quarter, compared to analyst estimates of $4.08 billion. During the same quarter in the prior year, the business posted $2.41 EPS. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. On average, equities analysts anticipate that Illinois Tool Works will post 10.25 earnings per share for the current year.

Insider Activity at Illinois Tool Works

In other news, Director David Byron Smith, Jr. purchased 775 shares of the business’s stock in a transaction that occurred on Thursday, June 13th. The stock was purchased at an average cost of $238.82 per share, with a total value of $185,085.50. Following the acquisition, the director now directly owns 121,506 shares of the company’s stock, valued at approximately $29,018,062.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.88% of the stock is currently owned by insiders.

Analysts Set New Price Targets

ITW has been the subject of several recent analyst reports. Citigroup upped their target price on shares of Illinois Tool Works from $258.00 to $269.00 and gave the stock a “neutral” rating in a research report on Monday, April 8th. StockNews.com cut shares of Illinois Tool Works from a “buy” rating to a “hold” rating in a report on Thursday. JPMorgan Chase & Co. increased their price objective on shares of Illinois Tool Works from $267.00 to $270.00 and gave the company an “overweight” rating in a report on Wednesday, July 31st. Truist Financial cut their target price on shares of Illinois Tool Works from $283.00 to $281.00 and set a “buy” rating for the company in a research note on Wednesday, July 31st. Finally, Barclays cut their target price on shares of Illinois Tool Works from $217.00 to $215.00 and set an “underweight” rating for the company in a research note on Wednesday, July 31st. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $250.75.

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.