Compass Capital Management Inc. Purchases Shares of 200,530 Illinois Tool Works Inc. $ITW

Key Points

• Compass Capital Management purchased 200,530 shares of Illinois Tool Works, valued at approximately $54.2 million, making ITW its 11th-largest holding and about 3.3% of its portfolio.
• Illinois Tool Works exceeded quarterly earnings and revenue expectations, reporting $2.84 EPS on $4.30 billion in revenue, while revenue increased 6.1% year over year. The company also raised its quarterly dividend to $1.72 per share, a 2.4% yield.
• Analyst sentiment remains cautious: ITW has a consensus “Reduce” rating and a $281.25 price target, despite JPMorgan raising its target to $350. Institutional investors own approximately 79.77% of the stock.

Compass Capital Management Inc. purchased a new position in Illinois Tool Works Inc. (NYSE:ITW - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 200,530 shares of the industrial products company's stock, valued at approximately $54,237,000. Illinois Tool Works makes up approximately 3.3% of Compass Capital Management Inc.'s investment portfolio, making the stock its 11th biggest holding. Compass Capital Management Inc. owned about 0.07% of Illinois Tool Works as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Brighton Jones LLC lifted its position in shares of Illinois Tool Works by 5.3% in the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after buying an additional 277 shares in the last quarter. Bison Wealth LLC increased its stake in Illinois Tool Works by 2.3% in the 4th quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after acquiring an additional 81 shares during the last quarter. Sivia Capital Partners LLC increased its stake in Illinois Tool Works by 20.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock worth $257,000 after acquiring an additional 177 shares during the last quarter. Sei Investments Co. raised its holdings in shares of Illinois Tool Works by 22.0% during the 2nd quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock worth $26,401,000 after acquiring an additional 19,248 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its position in shares of Illinois Tool Works by 2.2% during the 2nd quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock valued at $33,845,000 after acquiring an additional 2,890 shares during the last quarter. 79.77% of the stock is owned by institutional investors.

Insider Activity

In other Illinois Tool Works news, Director Jennifer F. Scanlon bought 806 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were purchased at an average price of $247.99 per share, with a total value of $199,879.94. Following the completion of the purchase, the director owned 1,652 shares in the company, valued at $409,679.48. This represents a 95.27% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.83% of the stock is owned by company insiders.

Illinois Tool Works Trading Down 0.0%

ITW stock opened at $290.74 on Monday. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. Illinois Tool Works Inc. has a twelve month low of $238.82 and a twelve month high of $303.15. The stock has a market capitalization of $82.80 billion, a price-to-earnings ratio of 26.36, a price-to-earnings-growth ratio of 4.91 and a beta of 0.99. The firm's fifty day simple moving average is $275.01 and its two-hundred day simple moving average is $270.73.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share 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 business had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.19 billion. During the same quarter in the prior year, the firm posted $2.58 earnings per share. The business'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. As a group, analysts anticipate that Illinois Tool Works Inc. will post 11.45 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be given a dividend of $1.72 per share. This represents a $6.88 annualized dividend and a dividend yield of 2.4%. This is a boost from Illinois Tool Works's previous quarterly dividend of $1.61. The ex-dividend date is Wednesday, September 30th. Illinois Tool Works's dividend payout ratio (DPR) is presently 58.39%.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on ITW shares. JPMorgan Chase & Co. lifted their price objective on shares of Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. The Goldman Sachs Group restated a "sell" rating and set a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. Robert W. Baird increased their price target on shares of Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Evercore dropped their price target on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. Finally, Citigroup reissued a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $281.25.

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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