Dimensional Fund Advisors LP Lowers Stock Holdings in Illinois Tool Works Inc. $ITW

Key Points

• Institutional investor Dimensional Fund Advisors LP trimmed its stake in Illinois Tool Works by 1.0% to 1,777,705 shares, worth about $463.56M and representing roughly 0.61% of the company.
• Significant insider selling occurred: Director Ernest Scott Santi sold 167,345 shares for about $48.7M (reducing his holdings ~39%) and EVP Axel Beck sold 4,223 shares for about $1.23M (reducing his holdings ~42%); insiders now own ~0.88% of the stock.
• Illinois Tool Works slightly beat quarterly EPS estimates, set FY2026 guidance of 11.00–11.40 EPS, and announced a quarterly dividend of $1.61 (annualized $6.44, ~2.2% yield).

Dimensional Fund Advisors LP cut its holdings in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 1.0% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,777,705 shares of the industrial products company's stock after selling 17,892 shares during the quarter. Dimensional Fund Advisors LP owned 0.61% of Illinois Tool Works worth $463,558,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Corsicana & Co. purchased a new stake in Illinois Tool Works in the 3rd quarter worth $26,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Illinois Tool Works during the second quarter worth about $31,000. Vermillion & White Wealth Management Group LLC raised its position in shares of Illinois Tool Works by 103.3% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 124 shares of the industrial products company's stock worth $31,000 after purchasing an additional 63 shares during the last quarter. True Wealth Design LLC lifted its stake in Illinois Tool Works by 341.9% in the 3rd quarter. True Wealth Design LLC now owns 137 shares of the industrial products company's stock valued at $36,000 after buying an additional 106 shares in the last quarter. Finally, MTM Investment Management LLC boosted its holdings in Illinois Tool Works by 70.5% in the 3rd quarter. MTM Investment Management LLC now owns 162 shares of the industrial products company's stock worth $42,000 after buying an additional 67 shares during the last quarter. Hedge funds and other institutional investors own 79.77% of the company's stock.

Insiders Place Their Bets

In other Illinois Tool Works news, Director Ernest Scott Santi sold 167,345 shares of the company's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the transaction, the director owned 258,766 shares of the company's stock, valued at $75,282,792.38. This represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Axel Beck sold 4,223 shares of Illinois Tool Works stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the sale, the executive vice president owned 5,789 shares of the company's stock, valued at approximately $1,680,083.58. This represents a 42.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.88% of the stock is owned by insiders.

Illinois Tool Works Trading Up 0.5%

Shares of ITW opened at $287.29 on Thursday. Illinois Tool Works Inc. has a 12-month low of $214.66 and a 12-month high of $303.15. The firm has a market capitalization of $82.80 billion, a P/E ratio of 27.39, a P/E/G ratio of 15.31 and a beta of 1.13. The firm has a 50-day moving average price of $271.92 and a 200 day moving average price of $260.23. The company has a current ratio of 1.21, a quick ratio of 0.89 and a debt-to-equity ratio of 2.07.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share for the quarter, beating the consensus estimate of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The company had revenue of $4.09 billion for the quarter, compared to analyst estimates of $4.07 billion. During the same period in the previous year, the business posted $2.54 EPS. Illinois Tool Works's revenue was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Sell-side analysts forecast that Illinois Tool Works Inc. will post 10.39 EPS for the current year.

Illinois Tool Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $1.61 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $6.44 annualized dividend and a yield of 2.2%. Illinois Tool Works's dividend payout ratio (DPR) is 61.39%.

Wall Street Analysts Forecast Growth

ITW has been the subject of a number of research analyst reports. Barclays increased their target price on Illinois Tool Works from $244.00 to $275.00 and gave the company an "underweight" rating in a report on Monday, February 9th. UBS Group restated a "neutral" rating and issued a $285.00 price objective on shares of Illinois Tool Works in a report on Wednesday, February 4th. The Goldman Sachs Group reaffirmed a "sell" rating and set a $253.00 target price on shares of Illinois Tool Works in a research note on Tuesday, February 3rd. Wolfe Research increased their target price on shares of Illinois Tool Works from $276.00 to $295.00 and gave the company an "underperform" rating in a research report on Friday, February 27th. Finally, Robert W. Baird set a $278.00 price target on shares of Illinois Tool Works in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $274.38.

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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