Fintel reports that on October 16, 2023, JP Morgan maintained coverage of Illinois Tool Works (NYSE:ITW) with a Overweight recommendation.
Analyst Price Forecast Suggests 5.78% Upside
As of October 5, 2023, the average one-year price target for Illinois Tool Works is 247.04. The forecasts range from a low of 184.83 to a high of $277.20. The average price target represents an increase of 5.78% from its latest reported closing price of 233.54.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Illinois Tool Works is 15,905MM, a decrease of 1.06%. The projected annual non-GAAP EPS is 9.42.
Illinois Tool Works Declares $1.40 Dividend
On August 4, 2023 the company declared a regular quarterly dividend of $1.40 per share ($5.60 annualized). Shareholders of record as of September 29, 2023 received the payment on October 12, 2023. Previously, the company paid $1.31 per share.
At the current share price of $233.54 / share, the stock's dividend yield is 2.40%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.42%, the lowest has been 1.91%, and the highest has been 3.62%. The standard deviation of yields is 0.31 (n=236).
The current dividend yield is 0.07 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.55. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.23%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2370 funds or institutions reporting positions in Illinois Tool Works. This is an increase of 6 owner(s) or 0.25% in the last quarter. Average portfolio weight of all funds dedicated to ITW is 0.30%, a decrease of 8.80%. Total shares owned by institutions decreased in the last three months by 0.86% to 263,518K shares. 
The put/call ratio of ITW is 0.81, indicating a bullish outlook.
What are Other Shareholders Doing?
Briar Hall Management holds 26,163K shares representing 8.65% ownership of the company. No change in the last quarter.
State Farm Mutual Automobile Insurance holds 21,030K shares representing 6.95% ownership of the company. No change in the last quarter.
Northern Trust holds 12,585K shares representing 4.16% ownership of the company. In it's prior filing, the firm reported owning 12,877K shares, representing a decrease of 2.32%. The firm increased its portfolio allocation in ITW by 160.72% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,065K shares representing 2.67% ownership of the company. In it's prior filing, the firm reported owning 8,499K shares, representing a decrease of 5.38%. The firm decreased its portfolio allocation in ITW by 10.04% over the last quarter.
Wells Fargo holds 7,598K shares representing 2.51% ownership of the company. In it's prior filing, the firm reported owning 7,601K shares, representing a decrease of 0.04%. The firm increased its portfolio allocation in ITW by 193.64% over the last quarter.
Illinois Tool Works Background Information
(This description is provided by the company.)
Illinois Tool Works Inc. (ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $12.6 billion in 2020. The company's seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW's approximately 43,000 dedicated colleagues around the world thrive in the company's decentralized and entrepreneurial culture.
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This story originally appeared on Fintel.
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