CenterBook Partners LP Buys New Position in Illinois Tool Works Inc. $ITW

Key Points

• CenterBook Partners opened a new position in Illinois Tool Works, buying 8,164 shares valued at approximately $2.1 million. Institutional investors collectively own 79.77% of the company’s stock.
• ITW reported quarterly earnings of $3.00 per share, beating estimates by $0.03, while revenue of $4.24 billion fell short of expectations; revenue rose 4.5% year over year.
• Analyst sentiment was cautious: the stock had an average “Reduce” rating and an average price target of $276.33. ITW also declared a quarterly dividend of $1.72 per share, equivalent to a 2.4% yield.

CenterBook Partners LP purchased a new stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 8,164 shares of the industrial products company's stock, valued at approximately $2,100,000.

Several other institutional investors have also made changes to their positions in ITW. BlackRock Inc. acquired a new stake in Illinois Tool Works during the second quarter worth approximately $6,296,349,000. State Street Corp raised its holdings in Illinois Tool Works by 1.0% in the 2nd quarter. State Street Corp now owns 12,788,570 shares of the industrial products company's stock valued at $3,479,219,000 after acquiring an additional 128,089 shares in the last quarter. Bank of America Corp DE raised its holdings in Illinois Tool Works by 2.5% in the 1st quarter. Bank of America Corp DE now owns 3,005,659 shares of the industrial products company's stock valued at $782,343,000 after acquiring an additional 72,951 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Illinois Tool Works in the 2nd quarter valued at $603,166,000. Finally, Dimensional Fund Advisors LP lifted its position in shares of Illinois Tool Works by 3.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,045,009 shares of the industrial products company's stock valued at $532,261,000 after acquiring an additional 60,009 shares during the period. 79.77% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ITW has been the topic of several analyst reports. The Goldman Sachs Group reissued a "sell" rating and set a $270.00 target price on shares of Illinois Tool Works in a report on Tuesday, October 27th. JPMorgan Chase & Co. cut Illinois Tool Works from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $350.00 to $270.00 in a research report on Friday, October 9th. Weiss Ratings raised Illinois Tool Works from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 28th. Citigroup cut their price objective on shares of Illinois Tool Works from $317.00 to $310.00 and set a "neutral" rating for the company in a research report on Wednesday, October 28th. Finally, Robert W. Baird increased their price objective on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $276.33.

Illinois Tool Works Stock Performance

Shares of NYSE:ITW opened at $280.93 on Monday. The company's 50 day simple moving average is $271.85 and its 200 day simple moving average is $271.40. The stock has a market capitalization of $79.84 billion, a price-to-earnings ratio of 25.04, a price-to-earnings-growth ratio of 3.08 and a beta of 0.92. The company has a debt-to-equity ratio of 2.28, a current ratio of 1.29 and a quick ratio of 0.94. Illinois Tool Works Inc. has a 1 year low of $238.82 and a 1 year high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Tuesday, October 27th. The industrial products company reported $3.00 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.03. Illinois Tool Works had a return on equity of 103.35% and a net margin of 19.39%. The firm had revenue of $4.24 billion during the quarter, compared to analysts' expectations of $4.26 billion. During the same period in the prior year, the company earned $2.81 earnings per share. The company's quarterly revenue was up 4.5% on a year-over-year basis. As a group, research analysts predict that Illinois Tool Works Inc. will post 11.49 EPS for the current fiscal year.

Illinois Tool Works Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Thursday, December 31st will be paid a $1.72 dividend. The ex-dividend date is Thursday, December 31st. This represents a $6.88 annualized dividend and a dividend yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is presently 61.32%.

Insiders Place Their Bets

In other news, CAO Matteo Pigozzo sold 277 shares of the business's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the transaction, the chief accounting officer owned 3,394 shares of the company's stock, valued at approximately $981,612.68. The trade was a 7.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ernest Santi sold 60,000 shares of the company's stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $292.87, for a total value of $17,572,200.00. Following the sale, the director owned 266,333 shares of the company's stock, valued at approximately $78,000,945.71. This represents a 18.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 101,708 shares of company stock valued at $29,546,740 in the last three months. 0.83% of the stock is owned by insiders.

Illinois Tool Works Profile

Illinois Tool Works Inc NYSE: ITW is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions.

ITW's businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.

The company serves customers across North America, Europe, Asia, and other international markets through its manufacturing and sales operations.

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