Arrowstreet Capital Limited Partnership Lowers Position in Illinois Tool Works Inc. $ITW

Key Points

• Arrowstreet Capital trimmed its Illinois Tool Works stake by 0.9% in the fourth quarter, selling 12,230 shares and ending with 1,319,557 shares worth about $325 million.
• Illinois Tool Works reported better-than-expected quarterly earnings of $2.66 per share on revenue of $4.02 billion, and it raised FY 2026 EPS guidance to 11.10–11.50.
• The company declared a quarterly dividend of $1.61 per share, while analysts remain cautious overall with a consensus rating of “Reduce” and an average price target of $271.92.

Arrowstreet Capital Limited Partnership cut its stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 0.9% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,319,557 shares of the industrial products company's stock after selling 12,230 shares during the period. Arrowstreet Capital Limited Partnership owned 0.45% of Illinois Tool Works worth $325,007,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Cresta Advisors Ltd. purchased a new position in shares of Illinois Tool Works during the fourth quarter valued at approximately $25,000. Lodestone Wealth Management LLC purchased a new position in shares of Illinois Tool Works during the fourth quarter valued at approximately $28,000. Beacon Financial Strategies CORP purchased a new position in shares of Illinois Tool Works during the fourth quarter valued at approximately $29,000. Ares Financial Consulting LLC purchased a new position in shares of Illinois Tool Works during the fourth quarter valued at approximately $31,000. Finally, Meeder Asset Management Inc. lifted its holdings in shares of Illinois Tool Works by 215.0% during the fourth quarter. Meeder Asset Management Inc. now owns 126 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 86 shares during the last quarter. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Illinois Tool Works Price Performance

Shares of ITW opened at $257.22 on Monday. The company has a market capitalization of $74.00 billion, a P/E ratio of 23.88, a price-to-earnings-growth ratio of 4.42 and a beta of 1.01. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The firm has a 50 day moving average of $258.18 and a 200 day moving average of $263.01. Illinois Tool Works Inc. has a twelve month low of $238.82 and a twelve month high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The company had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter last year, the firm earned $2.38 earnings per share. The firm's quarterly revenue was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. As a group, equities research analysts anticipate that Illinois Tool Works Inc. will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be given a $1.61 dividend. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, June 30th. Illinois Tool Works's payout ratio is 59.80%.

Insider Buying and Selling

In related news, Director Jennifer F. Scanlon bought 806 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was acquired at an average price of $247.99 per share, with a total value of $199,879.94. Following the transaction, the director owned 1,652 shares in the company, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.83% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on ITW. Wolfe Research lifted their target price on shares of Illinois Tool Works from $276.00 to $295.00 and gave the company an "underperform" rating in a report on Friday, February 27th. Evercore lowered their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Barclays lowered their target price on shares of Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating for the company in a report on Wednesday, April 1st. Wells Fargo & Company raised their price target on shares of Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Finally, The Goldman Sachs Group reissued a "sell" rating and set a $254.00 price target on shares of Illinois Tool Works in a research report on Thursday, April 30th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $271.92.

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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