Capstone Capital Management Ltd Makes New Investment in Illinois Tool Works Inc. $ITW

Key Points

• Capstone Capital Management initiated a position in Illinois Tool Works, buying 3,754 shares worth approximately $966,000. Institutional investors collectively own 79.77% of ITW.
• Analyst sentiment is cautious: ITW has a consensus “Reduce” rating and an average price target of $273.42, with recent downgrades and target-price cuts from JPMorgan, Truist, and others.
• ITW reported quarterly EPS of $2.84 and revenue of $4.30 billion, exceeding estimates, while revenue rose 6.1% year over year. The company also increased its quarterly dividend to $1.72, or $6.88 annually.

Capstone Capital Management Ltd bought a new position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) during the third quarter, according to the company in its most recent disclosure with the SEC. The firm bought 3,754 shares of the industrial products company's stock, valued at approximately $966,000.

Several other hedge funds have also made changes to their positions in the stock. B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Illinois Tool Works during the 2nd quarter valued at about $5,017,000. Sanctuary Advisors LLC bought a new stake in Illinois Tool Works in the 2nd quarter valued at $14,028,000. Cibc World Market Inc. acquired a new stake in Illinois Tool Works during the second quarter worth about $3,887,000. Sapient Capital LLC increased its position in shares of Illinois Tool Works by 227.7% during the second quarter. Sapient Capital LLC now owns 13,611 shares of the industrial products company's stock valued at $3,703,000 after purchasing an additional 9,457 shares during the period. Finally, Fidelity National Financial Inc. bought a new stake in Illinois Tool Works in the 2nd quarter valued at $20,583,000. Institutional investors own 79.77% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on ITW shares. Wolfe Research restated an "underperform" rating and set a $286.00 target price on shares of Illinois Tool Works in a research report on Thursday, July 9th. UBS Group set a $277.00 price objective on shares of Illinois Tool Works in a research report on Friday, October 9th. JPMorgan Chase & Co. downgraded shares of Illinois Tool Works from an "overweight" rating to a "neutral" rating and dropped their target price for the stock from $350.00 to $270.00 in a research note on Friday, October 9th. Weiss Ratings lowered shares of Illinois Tool Works from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. Finally, Truist Financial decreased their price target on shares of Illinois Tool Works from $308.00 to $297.00 and set a "hold" rating on the stock in a research note on Monday, October 5th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, Illinois Tool Works has a consensus rating of "Reduce" and a consensus target price of $273.42.

Insider Buying and Selling at Illinois Tool Works

In related news, CAO Matteo C. Pigozzo sold 277 shares of the company's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following the completion of the sale, the chief accounting officer owned 3,394 shares in the company, valued at $981,612.68. This represents a 7.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Ernest Santi sold 41,431 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, the director owned 266,288 shares of the company's stock, valued at $76,448,621.92. This trade represents a 13.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is owned by company insiders.

Illinois Tool Works Stock Performance

Shares of NYSE:ITW opened at $275.04 on Wednesday. The stock has a market capitalization of $78.33 billion, a P/E ratio of 24.49, a P/E/G ratio of 2.92 and a beta of 0.96. Illinois Tool Works Inc. has a 1-year low of $238.82 and a 1-year high of $303.15. The company has a current ratio of 1.11, a quick ratio of 0.81 and a debt-to-equity ratio of 2.26. The business has a 50-day moving average price of $272.67 and a two-hundred day moving average price of $268.64.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its earnings results 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 net margin of 19.39% and a return on equity of 101.72%. The company had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. During the same quarter last year, the firm earned $2.58 EPS. The company's revenue for the quarter was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Equities analysts predict that Illinois Tool Works Inc. will post 11.42 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th were paid a $1.72 dividend. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.5%. Illinois Tool Works's dividend payout ratio (DPR) is currently 62.38%.

Illinois Tool Works Profile

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and systems for customers in a range of industries. Founded in 1912 and headquartered in Glenview, Illinois, the company serves markets worldwide through a portfolio of highly engineered businesses.

ITW's operations include food equipment, automotive components, welding products, test and measurement equipment, electronics materials, polymers and fluids, construction products, and specialty products.

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