Dearborn Partners LLC Makes New $29.92 Million Investment in Illinois Tool Works Inc. $ITW

Key Points

• Dearborn Partners invested approximately $29.9 million in Illinois Tool Works during the second quarter, purchasing 114,961 shares. Institutional investors and hedge funds collectively own 79.77% of ITW.
• Illinois Tool Works reported quarterly EPS of $2.84, topping estimates by $0.04, while revenue rose 6.1% year over year to $4.30 billion. The company guided to fiscal 2026 EPS of $11.35–$11.55.
• The company increased its quarterly dividend to $1.72 per share, representing an annualized dividend of $6.88 and a 2.4% yield. Despite the dividend hike, analysts maintain a consensus “Reduce” rating with an average price target of $281.25.

Dearborn Partners LLC purchased a new position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 114,961 shares of the industrial products company's stock, valued at approximately $29,923,000. Illinois Tool Works makes up 1.4% of Dearborn Partners LLC's portfolio, making the stock its 20th biggest position.

A number of other hedge funds and other institutional investors also recently made changes to their positions in ITW. Cresta Advisors Ltd. acquired a new position in Illinois Tool Works during the fourth quarter worth $25,000. Motiv8 Investments LLC acquired a new stake in Illinois Tool Works in the 4th quarter valued at $27,000. Kemnay Advisory Services Inc. bought a new stake in Illinois Tool Works during the 4th quarter worth about $27,000. Abound Wealth Management boosted its stake in shares of Illinois Tool Works by 178.6% during the 2nd quarter. Abound Wealth Management now owns 117 shares of the industrial products company's stock worth $32,000 after buying an additional 75 shares during the last quarter. Finally, Wilkerson Advisory Group LLC boosted its stake in shares of Illinois Tool Works by 77.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 119 shares of the industrial products company's stock worth $31,000 after buying an additional 52 shares during the last quarter. 79.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms recently issued reports on ITW. Robert W. Baird lifted their target price on Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. The Goldman Sachs Group reissued a "sell" rating and set a $254.00 price target on shares of Illinois Tool Works in a research report on Thursday, April 30th. Evercore decreased their price target on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. UBS Group reaffirmed a "neutral" rating and set a $300.00 price target on shares of Illinois Tool Works in a research report on Wednesday, July 29th. Finally, Weiss Ratings raised Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, Illinois Tool Works currently has a consensus rating of "Reduce" and an average price target of $281.25.

Illinois Tool Works Trading Down 1.4%

Illinois Tool Works stock opened at $281.43 on Friday. The stock has a 50-day simple moving average of $279.56 and a 200 day simple moving average of $271.44. The stock has a market capitalization of $80.15 billion, a P/E ratio of 25.52, a PEG ratio of 4.82 and a beta of 0.99. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. Illinois Tool Works Inc. has a 52 week low of $238.82 and a 52 week high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings data 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 return on equity of 101.72% and a net margin of 19.39%.The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.19 billion. During the same quarter in the prior year, the company earned $2.58 earnings per share. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Analysts expect 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 declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $1.72 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 annualized dividend and a yield of 2.4%. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's payout ratio is 58.39%.

Insiders Place Their Bets

In other news, CAO Matteo C. Pigozzo sold 277 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following the transaction, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jennifer F. Scanlon bought 806 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average price of $247.99 per share, with a total value of $199,879.94. Following the purchase, the director owned 1,652 shares in the company, valued at $409,679.48. The trade was a 95.27% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.83% of the company's stock.

Illinois Tool Works Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.