Cullinan Associates Inc. Decreases Stake in Illinois Tool Works Inc. $ITW

Key Points

• Cullinan Associates cut its stake in Illinois Tool Works by 36.6% in Q4, selling 8,095 shares and retaining 14,006 shares worth about $3.45 million.
• ITW beat Q1 estimates with $2.66 EPS on $4.02B revenue and raised FY2026 guidance to $11.10–$11.50, while operating margin expanded ~60 bps despite roughly flat organic revenue.
• Market signals are mixed — insider selling and divergent analyst ratings (consensus "Reduce," target ≈ $270) temper the beat, and the company pays a quarterly dividend of $1.61 (annual $6.44, ~2.5% yield).

Cullinan Associates Inc. lessened its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 36.6% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 14,006 shares of the industrial products company's stock after selling 8,095 shares during the period. Cullinan Associates Inc.'s holdings in Illinois Tool Works were worth $3,450,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of Illinois Tool Works by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 26,887,218 shares of the industrial products company's stock worth $6,622,322,000 after purchasing an additional 189,229 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of Illinois Tool Works by 3.0% during the third quarter. Capital Research Global Investors now owns 4,493,555 shares of the industrial products company's stock worth $1,171,740,000 after purchasing an additional 131,702 shares during the last quarter. Fisher Asset Management LLC raised its holdings in shares of Illinois Tool Works by 1.5% during the third quarter. Fisher Asset Management LLC now owns 3,650,562 shares of the industrial products company's stock worth $951,921,000 after purchasing an additional 55,416 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Illinois Tool Works by 1.3% during the third quarter. Ameriprise Financial Inc. now owns 2,587,639 shares of the industrial products company's stock worth $674,871,000 after purchasing an additional 33,171 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in shares of Illinois Tool Works by 0.3% during the third quarter. Bank of New York Mellon Corp now owns 2,333,765 shares of the industrial products company's stock worth $608,552,000 after purchasing an additional 7,372 shares during the last quarter. Hedge funds and other institutional investors own 79.77% of the company's stock.

Illinois Tool Works Stock Performance

NYSE:ITW opened at $258.01 on Friday. The company has a current ratio of 1.21, a quick ratio of 0.89 and a debt-to-equity ratio of 2.07. The company's 50-day moving average price is $270.96 and its 200-day moving average price is $261.65. Illinois Tool Works Inc. has a twelve month low of $236.68 and a twelve month high of $303.15. The company has a market cap of $74.33 billion, a P/E ratio of 24.60, a P/E/G ratio of 4.77 and a beta of 1.13.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, topping analysts' consensus estimates of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The company had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the previous year, the firm earned $2.38 earnings per share. Illinois Tool Works'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. On average, sell-side analysts forecast that Illinois Tool Works Inc. will post 11.26 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Tuesday, March 31st were paid a dividend of $1.61 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. Illinois Tool Works's payout ratio is 61.39%.

Analysts Set New Price Targets

Several research analysts recently issued reports on ITW shares. Robert W. Baird set a $278.00 target price on shares of Illinois Tool Works in a report on Wednesday, February 4th. UBS Group reissued a "neutral" rating and set a $285.00 target price on shares of Illinois Tool Works in a report on Wednesday, February 4th. Truist Financial raised their target price on shares of Illinois Tool Works from $275.00 to $280.00 and gave the stock a "hold" rating in a report on Wednesday, February 4th. Wolfe Research raised their target price on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a report on Friday, February 27th. Finally, Barclays dropped their price target on shares of Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 1st. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $270.08.

Key Illinois Tool Works News

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Q1 beat and guidance bump — ITW delivered $2.66 GAAP EPS (+12% YoY) on $4.02B revenue, and raised FY 2026 GAAP EPS to a $11.10–$11.50 range, which supports upside to consensus. ITW Reports First Quarter 2026 Results
• Positive Sentiment: Operational improvement — operating margin expanded 60 bps to 25.4% (enterprise initiatives added 120 bps) and management cited stronger cash flow and execution, suggesting continued earnings leverage if trends persist. ITW Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Guidance largely in line with estimates — the new FY EPS range is close to sell‑side consensus, leaving limited surprise to drive further rerating absent stronger organic demand. Investors will watch forward revenue cadence and margins. Compared to Estimates, ITW Q1 Earnings
• Negative Sentiment: Muted organic growth and mixed segment performance — organic revenue was roughly flat (~0.4%), several end markets (Automotive OEM, Food Equipment, Construction Products, Specialty Products) showed declines, and management indicated part of the EPS lift reflects a lower effective tax-rate assumption; investors are interpreting this as lower demand‑driven upside and took profits. Insider selling and a range of divergent analyst targets add to near‑term uncertainty. Illinois Tool Works slides as investors focus on muted organic growth

Insider Buying and Selling

In other news, EVP Axel Beck sold 4,223 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total value of $1,225,599.06. Following the sale, the executive vice president directly owned 5,789 shares of the company's stock, valued at approximately $1,680,083.58. The trade was a 42.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ernest Scott Santi sold 167,345 shares of the business's stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total transaction of $48,685,680.85. Following the completion of the sale, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. This trade represents a 39.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by insiders.

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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