The stock of Illinois Tool Works, Inc. (NYSE: ITW) has decreased by -0.92 when compared to last closing price of 264.21.Despite this, the company has seen a loss of -2.40% in its stock price over the last five trading days. The Motley Fool reported 2024-03-30 that The industrial sector, particularly industries relating to heavy machinery, is thriving. Industrials balance growth and income.
Is It Worth Investing in Illinois Tool Works, Inc. (NYSE: ITW) Right Now?
Illinois Tool Works, Inc. (NYSE: ITW) has a higher price-to-earnings ratio of 26.88x compared to its average ratio, The 36-month beta value for ITW is at 1.14. Analysts have varying views on the stock, with 4 analysts rating it as a “buy,” 4 rating it as “overweight,” 10 as “hold,” and 0 as “sell.”
The public float for ITW is 297.79M, and currently, shorts hold a 2.54% of that float. The average trading volume for ITW on April 05, 2024 was 1.29M shares.
ITW’s Market Performance
ITW’s stock has seen a -2.40% decrease for the week, with a 1.51% rise in the past month and a 1.35% gain in the past quarter. The volatility ratio for the week is 1.27%, and the volatility levels for the past 30 days are at 1.19% for Illinois Tool Works, Inc. The simple moving average for the past 20 days is -1.26% for ITW’s stock, with a 5.63% simple moving average for the past 200 days.
Analysts’ Opinion of ITW
Many brokerage firms have already submitted their reports for ITW stocks, with Truist repeating the rating for ITW by listing it as a “Buy.” The predicted price for ITW in the upcoming period, according to Truist is $301 based on the research report published on March 14, 2024 of the current year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see ITW reach a price target of $240, previously predicting the price at $277. The rating they have provided for ITW stocks is “Underweight” according to the report published on February 06th, 2024.
BofA Securities gave a rating of “Underperform” to ITW, setting the target price at $235 in the report published on January 10th of the current year.
ITW Trading at 0.28% from the 50-Day Moving Average
After a stumble in the market that brought ITW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.46% of loss for the given period.
Volatility was left at 1.19%, however, over the last 30 days, the volatility rate increased by 1.27%, as shares surge +0.58% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.33% upper at present.
During the last 5 trading sessions, ITW fell by -2.40%, which changed the moving average for the period of 200-days by +5.56% in comparison to the 20-day moving average, which settled at $265.19. In addition, Illinois Tool Works, Inc. saw -0.06% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ITW starting from Larsen Michael M, who sale 37,167 shares at the price of $265.06 back on Mar 14 ’24. After this action, Larsen Michael M now owns 46,404 shares of Illinois Tool Works, Inc., valued at $9,851,485 using the latest closing price.
Lawler Mary Katherine, the SVP & Chief HR Officer of Illinois Tool Works, Inc., sale 11,647 shares at $262.40 during a trade that took place back on Feb 28 ’24, which means that Lawler Mary Katherine is holding 25,562 shares at $3,056,173 based on the most recent closing price.
Stock Fundamentals for ITW
Current profitability levels for the company are sitting at:
- 0.25 for the present operating margin
- 0.42 for the gross margin
The net margin for Illinois Tool Works, Inc. stands at 0.18. The total capital return value is set at 0.37. Equity return is now at value 96.95, with 19.11 for asset returns.
Based on Illinois Tool Works, Inc. (ITW), the company’s capital structure generated 0.74 points at debt to capital in total, while cash flow to debt ratio is standing at 0.42. The debt to equity ratio resting at 2.78. The interest coverage ratio of the stock is 15.19.
Currently, EBITDA for the company is 4.52 billion with net debt to EBITDA at 1.71. When we switch over and look at the enterprise to sales, we see a ratio of 5.31. The receivables turnover for the company is 4.95for trailing twelve months and the total asset turnover is 1.04. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.33.
Conclusion
In conclusion, Illinois Tool Works, Inc. (ITW) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
