Truist has recently initiated Illinois Tool Works Inc. (ITW) stock to Buy rating, as announced on March 14, 2024, according to Finviz. Earlier, on February 6, 2024, Wells Fargo had reduced the stock from a Equal Weight to Underweight, setting a price target of $240 for ITW stock. BofA Securities also reduced Underperform rating with a price target of $235. Additionally, Vertical Research reduced Hold rating on January 3, 2023, with a target price of $220. BofA Securities analysts, in their report published on August 24, 2022, also resumed Neutral rating for Illinois Tool Works Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Illinois Tool Works Inc. (ITW) Stock Trading Recap
On Friday, Illinois Tool Works Inc. (ITW) stock saw a decline, ending the day at $258.41 which represents a decrease of $-1.58 or -0.61% from the prior close of $259.99. The stock opened at $260.96 and touched a low of $256.49 during the day, reaching a high of $261.41. The volume of shares traded was 0.62 million falling short of the average volume of 0.92 million.
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ITW Stock Performance and Moving Averages
In recent trading, Illinois Tool Works Inc. (ITW) stock price has shown some volatility, fluctuating -2.11% over the last five trades and 6.32% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -1.72%, and it has gained 10.47% in the previous three months. Currently, ITW is trading at 1.25%, 3.95%, and 2.79% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ITW, a Industrials sector stock, is trading -4.70% below its 52-week high but remains 18.81% above its 52-week low. The Average True Range (ATR) (14 days) of 4.17 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Illinois Tool Works Inc.’s Profitability and Valuation Ratios
Illinois Tool Works Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 26.47% and a profit margin of 19.15%, with a gross margin of -1.72%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Illinois Tool Works Inc.’s market capitalization stands at $76.72 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 25.33, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 24.06. Additionally, the Price-to-Sales Ratio is 4.79, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 25.91, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.35% of Illinois Tool Works Inc. (ITW)’s shares, while financial institutions hold 83.16%.
Notable insider trades include Larsen Michael M, SVP & CFO at Illinois Tool Works Inc. (ITW), who sold 37167 shares on Mar 14 ’24, at $265.06 each, totaling $9.85 million. On Feb 28 ’24, Lawler Mary Katherine, SVP & Chief HR Officer, sold 11647 shares for $262.4 each, amounting to $3.06 million. Additionally, on Feb 12 ’24, SCHEUNEMAN RANDALL J sold 5827 shares at $256.29 each, generating $1.49 million.
