Dearborn Partners LLC Cuts Position in Illinois Tool Works Inc. $ITW

Key Points

• Dearborn Partners reduced its Illinois Tool Works stake by 3.7% in the fourth quarter, though the firm still held 142,825 shares valued at about $35.2 million.
• Wall Street sentiment is cautious: recent analyst moves included target cuts from Barclays and JPMorgan, and the overall consensus rating is "Reduce" with a price target of $271.92.
• Illinois Tool Works reported better-than-expected quarterly results, with EPS of $2.66 topping estimates and revenue of $4.02 billion slightly ahead of forecasts. The company also announced a quarterly dividend of $1.61 per share, payable July 10, for a 2.6% yield.

Dearborn Partners LLC trimmed its position in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 3.7% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 142,825 shares of the industrial products company's stock after selling 5,518 shares during the quarter. Illinois Tool Works accounts for approximately 1.8% of Dearborn Partners LLC's portfolio, making the stock its 12th largest holding. Dearborn Partners LLC's holdings in Illinois Tool Works were worth $35,178,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. First Command Advisory Services Inc. raised its holdings in shares of Illinois Tool Works by 33.1% in the 4th quarter. First Command Advisory Services Inc. now owns 358 shares of the industrial products company's stock worth $88,000 after purchasing an additional 89 shares during the period. BI Asset Management Fondsmaeglerselskab A S grew its stake in shares of Illinois Tool Works by 26.7% in the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 95,232 shares of the industrial products company's stock valued at $23,456,000 after buying an additional 20,090 shares in the last quarter. OneAscent Family Office LLC grew its stake in shares of Illinois Tool Works by 28.4% in the fourth quarter. OneAscent Family Office LLC now owns 1,116 shares of the industrial products company's stock valued at $275,000 after buying an additional 247 shares in the last quarter. Pinebridge Investments LLC acquired a new stake in shares of Illinois Tool Works in the fourth quarter valued at about $76,764,000. Finally, PBU The Pension Fund of Early Childhood & Youth Educators acquired a new stake in shares of Illinois Tool Works in the fourth quarter valued at about $3,812,000. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ITW has been the subject of a number of recent research reports. Barclays lowered their target price on Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating for the company in a research note on Wednesday, April 1st. JPMorgan Chase & Co. lowered their target price on Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Weiss Ratings lowered Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Wolfe Research increased their target price on Illinois Tool Works from $276.00 to $295.00 and gave the company an "underperform" rating in a research note on Friday, February 27th. Finally, The Goldman Sachs Group reiterated a "sell" rating and issued a $254.00 target price on shares of Illinois Tool Works in a research note on Thursday, April 30th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $271.92.

Insider Buying and Selling

In related news, Director Jennifer F. Scanlon purchased 806 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were acquired at an average price of $247.99 per share, with a total value of $199,879.94. Following the acquisition, the director owned 1,652 shares in the company, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.83% of the stock is currently owned by corporate insiders.

Illinois Tool Works Price Performance

Shares of NYSE ITW opened at $252.48 on Friday. Illinois Tool Works Inc. has a fifty-two week low of $238.82 and a fifty-two week high of $303.15. The business has a 50 day moving average price of $258.67 and a two-hundred day moving average price of $262.46. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The firm has a market cap of $72.64 billion, a PE ratio of 23.44, a price-to-earnings-growth ratio of 4.34 and a beta of 1.01.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, beating analysts' consensus estimates of $2.57 by $0.09. Illinois Tool Works had a return on equity of 97.36% and a net margin of 19.32%.The firm had revenue of $4.02 billion during the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the firm earned $2.38 EPS. Illinois Tool Works's quarterly revenue was up 4.6% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. Sell-side analysts expect that Illinois Tool Works Inc. will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $1.61 per share. This represents a $6.44 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Illinois Tool Works's dividend payout ratio (DPR) is currently 59.80%.

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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