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

Illinois Tool Works Inc. (NYSE:ITW) was the recipient of a large drop in short interest in the month of October. As of October 15th, there was short interest totalling 6,250,000 shares, a drop of 6.7% from the September 30th total of 6,700,000 shares. Based on an average daily trading volume, of 837,400 shares, the short-interest ratio is presently 7.5 days. Currently, 2.1% of the shares of the company are short sold.

Illinois Tool Works Stock Performance

Shares of Illinois Tool Works stock opened at $263.08 on Friday. The company’s 50 day moving average price is $255.59 and its two-hundred day moving average price is $247.43. The firm has a market capitalization of $78.11 billion, a P/E ratio of 22.76, a P/E/G ratio of 4.21 and a beta of 1.10. Illinois Tool Works has a fifty-two week low of $225.88 and a fifty-two week high of $271.15. The company has a debt-to-equity ratio of 1.94, a current ratio of 1.36 and a quick ratio of 0.92.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings data on Wednesday, October 30th. The industrial products company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.53 by $0.12. Illinois Tool Works had a return on equity of 97.06% and a net margin of 21.66%. The company had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $4.02 billion. During the same quarter last year, the business posted $2.55 EPS. Illinois Tool Works’s revenue for the quarter was down 1.6% on a year-over-year basis. On average, equities analysts forecast that Illinois Tool Works will post 10.16 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 10th. Stockholders of record on Tuesday, December 31st will be paid a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.28%. The ex-dividend date of this dividend is Tuesday, December 31st. Illinois Tool Works’s dividend payout ratio is currently 51.90%.

Analysts Set New Price Targets

A number of research firms recently commented on ITW. JPMorgan Chase & Co. raised their price target on shares of Illinois Tool Works from $267.00 to $270.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 31st. Evercore ISI cut their price target on Illinois Tool Works from $251.00 to $246.00 and set an “in-line” rating for the company in a research note on Monday, August 19th. StockNews.com raised Illinois Tool Works from a “hold” rating to a “buy” rating in a research report on Thursday. Jefferies Financial Group dropped their price objective on Illinois Tool Works from $275.00 to $240.00 and set a “hold” rating for the company in a report on Thursday, July 11th. Finally, Robert W. Baird increased their target price on Illinois Tool Works from $240.00 to $250.00 and gave the stock a “neutral” rating in a report on Thursday. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Illinois Tool Works presently has a consensus rating of “Hold” and an average price target of $256.40.

Institutional Investors Weigh In On Illinois Tool Works

Several hedge funds have recently added to or reduced their stakes in the business. Financial Connections Group Inc. bought a new stake in shares of Illinois Tool Works in the second quarter worth $30,000. Fairscale Capital LLC acquired a new stake in shares of Illinois Tool Works in the second quarter valued at about $30,000. Catalyst Capital Advisors LLC bought a new position in shares of Illinois Tool Works during the third quarter worth about $32,000. Northwest Investment Counselors LLC bought a new stake in Illinois Tool Works in the third quarter valued at approximately $35,000. Finally, Meeder Asset Management Inc. increased its position in Illinois Tool Works by 261.4% during the 2nd quarter. Meeder Asset Management Inc. now owns 159 shares of the industrial products company’s stock valued at $38,000 after purchasing an additional 115 shares during the period. 79.77% of the stock is currently owned by institutional investors and hedge funds.

About Illinois Tool Works

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.