Aristotle Capital Management LLC Lowers Stake in Illinois Tool Works Inc. $ITW

Key Points

• Aristotle Capital Management LLC cut its stake in Illinois Tool Works by 76.8% in Q3, selling 56,165 shares and ending the period with 16,921 shares valued at about $4.41 million.
• Significant insider selling occurred: EVP Axel Beck sold 4,223 shares (~$1.23M, a 42% reduction) and Director Ernest Scott Santi sold 167,345 shares (~$48.7M, a 39% reduction).
• Analysts are mixed — the stock has an average MarketBeat rating of “Reduce” with a $275.69 target, while JPMorgan raised its price target to $327 (overweight) and Goldman Sachs reaffirmed a $253 sell rating.

Aristotle Capital Management LLC lessened its position in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 76.8% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,921 shares of the industrial products company's stock after selling 56,165 shares during the period. Aristotle Capital Management LLC's holdings in Illinois Tool Works were worth $4,412,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of the company. Cary Street Partners Investment Advisory LLC raised its holdings in Illinois Tool Works by 4.2% in the 2nd quarter. Cary Street Partners Investment Advisory LLC now owns 988 shares of the industrial products company's stock valued at $244,000 after acquiring an additional 40 shares during the last quarter. Everpar Advisors LLC boosted its holdings in shares of Illinois Tool Works by 1.7% during the third quarter. Everpar Advisors LLC now owns 2,574 shares of the industrial products company's stock worth $671,000 after purchasing an additional 42 shares during the last quarter. Confluence Wealth Services Inc. grew its position in shares of Illinois Tool Works by 1.0% in the third quarter. Confluence Wealth Services Inc. now owns 4,171 shares of the industrial products company's stock valued at $1,087,000 after purchasing an additional 43 shares during the period. Montag A & Associates Inc. grew its position in shares of Illinois Tool Works by 0.7% in the third quarter. Montag A & Associates Inc. now owns 6,605 shares of the industrial products company's stock valued at $1,733,000 after purchasing an additional 43 shares during the period. Finally, BLB&B Advisors LLC increased its stake in Illinois Tool Works by 2.9% in the third quarter. BLB&B Advisors LLC now owns 1,605 shares of the industrial products company's stock valued at $419,000 after purchasing an additional 45 shares during the last quarter. Institutional investors and hedge funds own 79.77% of the company's stock.

Wall Street Analyst Weigh In

ITW has been the topic of a number of research analyst reports. JPMorgan Chase & Co. raised their price target on Illinois Tool Works from $310.00 to $327.00 and gave the stock an "overweight" rating in a research note on Wednesday, March 4th. The Goldman Sachs Group reaffirmed a "sell" rating and set a $253.00 price objective on shares of Illinois Tool Works in a research note on Tuesday, February 3rd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Illinois Tool Works in a report on Wednesday, January 28th. Bank of America upgraded shares of Illinois Tool Works from an "underperform" rating to a "neutral" rating and boosted their target price for the company from $220.00 to $255.00 in a report on Tuesday, November 18th. Finally, Citigroup upped their price target on shares of Illinois Tool Works from $271.00 to $284.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $275.69.

Insider Activity at Illinois Tool Works

In related news, EVP Axel Beck sold 4,223 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the transaction, the executive vice president directly owned 5,789 shares of the company's stock, valued at approximately $1,680,083.58. The trade was a 42.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Ernest Scott Santi sold 167,345 shares of the company's stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the completion of the transaction, the director owned 258,766 shares of the company's stock, valued at approximately $75,282,792.38. This represents a 39.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.88% of the company's stock.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $267.09 on Friday. The firm has a fifty day moving average of $275.20 and a 200-day moving average of $260.68. Illinois Tool Works Inc. has a 52-week low of $214.66 and a 52-week high of $303.15. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. The firm has a market capitalization of $76.97 billion, a P/E ratio of 25.46, a PEG ratio of 14.29 and a beta of 1.13.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share for the quarter, topping analysts' consensus estimates of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The firm had revenue of $4.09 billion during the quarter, compared to analysts' expectations of $4.07 billion. During the same period in the prior year, the company earned $2.54 EPS. The firm's revenue was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. As a group, analysts predict that Illinois Tool Works Inc. will post 10.39 EPS for the current year.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 31st will be issued a dividend of $1.61 per share. This represents a $6.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, March 31st. Illinois Tool Works's dividend payout ratio (DPR) is presently 61.39%.

About Illinois Tool Works

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.

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