BlackRock Inc. Takes $6.30 Billion Position in Illinois Tool Works Inc. $ITW

Key Points

• BlackRock acquired a new $6.30 billion stake in Illinois Tool Works during the second quarter, totaling 23.28 million shares, or approximately 8.09% of the company. Institutional investors collectively own 79.77% of ITW.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with two Buy, six Hold, and five Sell ratings, and an average price target of $281.25.
• Illinois Tool Works exceeded quarterly expectations with $2.84 in EPS and $4.30 billion in revenue, while raising its quarterly dividend to $1.72, equivalent to a 2.4% annual yield.

BlackRock Inc. bought a new position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 23,279,289 shares of the industrial products company's stock, valued at approximately $6,296,349,000. BlackRock Inc. owned about 8.09% of Illinois Tool Works as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the company. Occidental Asset Management LLC bought a new stake in shares of Illinois Tool Works during the second quarter worth approximately $3,922,000. Dunhill Financial LLC bought a new position in shares of Illinois Tool Works in the 2nd quarter worth $415,000. Pallas Capital Advisors LLC bought a new position in Illinois Tool Works during the second quarter worth about $463,000. Performance Wealth Partners LLC acquired a new position in Illinois Tool Works during the second quarter valued at approximately $678,000. Finally, Deutsche Bank AG acquired a new position in shares of Illinois Tool Works in the 2nd quarter valued at $221,746,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Citigroup reissued a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Truist Financial boosted their price target on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. JPMorgan Chase & Co. raised their price objective on Illinois Tool Works from $310.00 to $350.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Weiss Ratings raised Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Finally, Evercore dropped their target price on Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $281.25.

Illinois Tool Works Trading Down 1.1%

Shares of NYSE:ITW opened at $287.63 on Tuesday. Illinois Tool Works Inc. has a 52-week low of $238.82 and a 52-week high of $303.15. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. The company has a market capitalization of $81.92 billion, a P/E ratio of 26.08, a price-to-earnings-growth ratio of 4.91 and a beta of 0.99. The company has a 50-day simple moving average of $275.71 and a 200 day simple moving average of $270.94.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. During the same quarter in the prior year, the company earned $2.58 earnings per share. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Sell-side analysts forecast that Illinois Tool Works Inc. will post 11.45 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be issued a $1.72 dividend. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. This represents a $6.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Wednesday, September 30th. Illinois Tool Works's dividend payout ratio is presently 58.39%.

Insider Activity

In other Illinois Tool Works news, CAO Matteo C. Pigozzo sold 277 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following the transaction, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at $981,612.68. This represents a 7.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jennifer F. Scanlon acquired 806 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were bought at an average price of $247.99 per share, with a total value of $199,879.94. Following the completion of the transaction, the director directly owned 1,652 shares of the company's stock, valued at approximately $409,679.48. The trade was a 95.27% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.83% of the stock is owned by corporate insiders.

Illinois Tool Works Profile

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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