Dimensional Fund Advisors LP Grows Stock Position in Illinois Tool Works Inc. $ITW

Key Points

• Dimensional Fund Advisors increased its Illinois Tool Works stake by 3.0% in the first quarter, adding 60,009 shares to bring its position to 2,045,009 shares worth about $532.3 million.
• Insider activity was also notable, as director Jennifer F. Scanlon bought 806 shares at $247.99 each, nearly doubling her ownership to 1,652 shares.
• Analysts are cautious overall: the stock has a consensus rating of “Reduce” with an average price target of $274, even though JPMorgan recently raised its target to $310 and ITW reported better-than-expected quarterly EPS and revenue.

Dimensional Fund Advisors LP boosted its holdings in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 3.0% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 2,045,009 shares of the industrial products company's stock after buying an additional 60,009 shares during the period. Dimensional Fund Advisors LP owned 0.71% of Illinois Tool Works worth $532,261,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of ITW. Cresta Advisors Ltd. acquired a new stake in Illinois Tool Works during the fourth quarter worth about $25,000. Motiv8 Investments LLC acquired a new position in shares of Illinois Tool Works in the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Illinois Tool Works during the 4th quarter worth about $27,000. Lodestone Wealth Management LLC purchased a new stake in shares of Illinois Tool Works during the 4th quarter worth about $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Insider Buying and Selling

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

Analyst Ratings Changes

Several research firms recently commented on ITW. The Goldman Sachs Group restated a "sell" rating and issued a $254.00 price target on shares of Illinois Tool Works in a report on Thursday, April 30th. Barclays dropped their price objective on shares of Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating for the company in a research report on Wednesday, April 1st. JPMorgan Chase & Co. raised their target price on shares of Illinois Tool Works from $295.00 to $310.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Weiss Ratings lowered shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Finally, Wolfe Research reaffirmed an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a research report on Thursday, July 9th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $274.00.

Illinois Tool Works Price Performance

ITW opened at $271.94 on Tuesday. The company has a market capitalization of $78.24 billion, a P/E ratio of 25.25, a PEG ratio of 4.74 and a beta of 1.00. The company has a 50-day moving average of $260.28 and a 200-day moving average of $266.28. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.86 and a current ratio of 1.19. 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 announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.66 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $4.01 billion. During the same period last year, the business posted $2.38 earnings per share. The firm's revenue for the quarter 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. Equities analysts expect that Illinois Tool Works Inc. will post 11.37 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Tuesday, June 30th were given a $1.61 dividend. This represents a $6.44 annualized dividend and a yield of 2.4%. The ex-dividend date was 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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