The stock of Illinois Tool Works, Inc (NYSE: ITW) has increased by 1.46 when compared to last closing price of 256.38. Despite this, the company has experienced a 0.09% gain in its stock price over the last five trading sessions. zacks.com reported 2025-01-29 that Illinois Tool Works (ITW) doesn’t possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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 22.50x compared to its average ratio. ITW has 36-month beta value of 1.12. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 13 as “hold,” and 4 as “sell.”
The public float for ITW is 294.28M, and currently, short sellers hold a 2.01% ratio of that float. The average trading volume of ITW on January 31, 2025 was 879.45K shares.
ITW’s Market Performance
ITW stock saw an increase of 0.09% in the past week, with a monthly gain of 1.40% and a quarterly increase of 1.27%. The volatility ratio for the week is 1.45%, and the volatility levels for the last 30 days are 1.45% for Illinois Tool Works, Inc (ITW). The simple moving average for the last 20 days is 2.09% for ITW stock, with a simple moving average of 2.98% for the last 200 days.
Analysts’ Opinion of ITW
Many brokerage firms have already submitted their reports for ITW stocks, with Barclays repeating the rating for ITW by listing it as a “Equal Weight.” The predicted price for ITW in the upcoming period, according to Barclays is $270 based on the research report published on December 05, 2024 of the previous year 2024.
Evercore ISI, on the other hand, stated in their research note that they expect to see ITW reach a price target of $255, previously predicting the price at $246. The rating they have provided for ITW stocks is “Underperform” according to the report published on November 13th, 2024.
Truist gave a rating of “Buy” to ITW, setting the target price at $301 in the report published on March 14th of the previous year.
ITW Trading at -1.22% 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 -6.81% of loss for the given period.
Volatility was left at 1.45%, however, over the last 30 days, the volatility rate increased by 1.45%, as shares surge +2.08% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.61% lower at present.
During the last 5 trading sessions, ITW rose by +0.09%, which changed the moving average for the period of 200-days by +2.61% in comparison to the 20-day moving average, which settled at $254.80. In addition, Illinois Tool Works, Inc saw 2.59% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ITW starting from SMITH DAVID BYRON JR, who purchase 635 shares at the price of $275.20 back on Dec 09 ’24. After this action, SMITH DAVID BYRON JR now owns 121,811 shares of Illinois Tool Works, Inc, valued at $174,752 using the latest closing price.
Lawler Mary Katherine, the SVP & Chief HR Officer of Illinois Tool Works, Inc, sale 11,647 shares at $272.95 during a trade that took place back on Nov 06 ’24, which means that Lawler Mary Katherine is holding 26,003 shares at $3,179,049 based on the most recent closing price.
Stock Fundamentals for ITW
Current profitability levels for the company are sitting at:
- 0.26 for the present operating margin
- 0.44 for the gross margin
The net margin for Illinois Tool Works, Inc stands at 0.22. The total capital return value is set at 0.38. Equity return is now at value 108.07, with 22.13 for asset returns.
Based on Illinois Tool Works, Inc (ITW), the company’s capital structure generated 0.71 points at debt to capital in total, while cash flow to debt ratio is standing at 0.38. The debt to equity ratio resting at 2.46. The interest coverage ratio of the stock is 14.81.
Currently, EBITDA for the company is 4.48 billion with net debt to EBITDA at 1.47. When we switch over and look at the enterprise to sales, we see a ratio of 5.28. The receivables turnover for the company is 4.94for trailing twelve months and the total asset turnover is 1.01. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.36.
Conclusion
To put it simply, Illinois Tool Works, Inc (ITW) has had a better performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others as 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.
