Illinois Tool Works Inc. (ITW) Insider Trading: What Insights Can Be Gained?


As of Friday close, Illinois Tool Works Inc.’s (NYSE:ITW) stock was down -$0.53, moving down -0.23 percent to $229.81. The average number of shares traded per day over the past five days has been 1,994,920 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.46 fall in that time frame. In the last twenty days, the average volume was 1,157,330, while in the previous 50 days, it was 1,105,492.

Since last month, ITW stock retreated -4.27%. Shares of the company fell to $223.88 on 03/15/23, the lowest level in the past month. A 52-week high of $253.37 was reached on 02/02/23 after having rallying from a 52-week low of $173.52. Since the beginning of this year, ITW’s stock price has risen by 4.32% or $9.51, and marked a new high 11 times. However, the stock has declined by -9.30% since its 52-week high.

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ITW stock investors should be aware that Illinois Tool Works Inc. (ITW) stock had its last reported insider trading activity 43 days ago on Feb 03. SANTI ERNEST SCOTT, the Chairman & CEO of the company, disposed of 235,656 shares for $246.29 on Feb 03. It resulted in a $58,040,211 divestment by the insider. O’HERLIHY CHRISTOPHER A sold 60,137 shares at an average price of $246.26 on Feb 03. The insider now owns 40,072 shares following the transaction. On Dec 09, Director SMITH DAVID BYRON JR bought 1,390 shares at $221.81 apiece. The transaction was valued at $308,316.

Valuation Metrics

Right now, Illinois Tool Works Inc. (ITW) has a P/E ratio of about 23.52. The stock’s beta is 1.11. Besides these, the trailing price-to-sales (P/S) ratio of 4.49, the price-to-book (PB) ratio of 22.82, and the price-to-cash flow ratio of 181.43 may also be considered.

The latest dividend of $1.31 per share was paid out, remained unchanged from last year’s $1.31.

Financial Health

In the three months ended December 30, Illinois Tool Works Inc.’s quick ratio stood at 0.90, while its current ratio was 1.40, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 2.00, and the total debt-to-equity ratio was 2.51. On the profitability front, the trailing twelve-month gross margin is 40.80% percent. In the year ended December 30, operating margins totaled 23.80%. Based on annual data, ITW earned $6.5 billion in gross profit and brought in $15.93 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 29.20%. Return on equity (ROE) for the past 12 months was 92.90%.

In Illinois Tool Works Inc.’s quarter-end financial report for December 30, it reported total debt of $6.17 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ITW’s revenue rose 7.35% to $4.01 billion during the quarter, while net income inched up to $3.97 billion. While analysts expected Illinois Tool Works Inc. to report $2.58 quarterly earnings, the actual figure was $2.95 per share, beating the consensus estimate by 14.30%. During the quarter, the company generated $1.08 billion in EBITDA. The liabilities of Illinois Tool Works Inc. were 12.33 billion at the end of its most recent quarter ended December 30, and its total debt was $7.95 billion. The value of shareholders’ equity is $305.07 million.

Technical Picture

This quick technical analysis looks at Illinois Tool Works Inc.’s (ITW) price momentum. With a historical volatility rate of 19.06%, the RSI 9-day stood at 40.76% on 17 March.

With respect to its five-day moving average, the current Illinois Tool Works Inc. price is down by -0.20% percent or -$0.46. At present, ITW shares trade -3.23% below its 20-day simple moving average and +17.48% percent above its 100-day simple moving average. However, the stock is currently trading approximately +4.07% above its SMA50 and +10.45% above its SMA200.

Stochastic coefficient K was 33.45% and Stochastic coefficient D was 36.06%, while ATR was 5.20. Given the Stochastic reading of 34.88% for the 14-day period, the RSI (14) reading has been calculated as 43.85%. As of today, the MACD Oscillator reading stands at -2.85, while the 14-day reading stands at -4.06.

Analyst Ratings

Illinois Tool Works Inc. downgraded its rating on Illinois Tool Works Inc. (NYSE: ITW) to a Hold in a note to investors on January 03, 2023. The analysts firm previously had a Buy rating on the stock.


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