Entropy Technologies LP Purchases New Stake in Illinois Tool Works Inc. $ITW

Key Points

• Entropy Technologies LP disclosed a new fourth-quarter stake in Illinois Tool Works, buying 22,841 shares worth about $5.63 million.
• Illinois Tool Works reported better-than-expected quarterly results, with EPS of $2.66 versus estimates of $2.57 and revenue of $4.02 billion, up 4.6% year over year.
• The company also announced a quarterly dividend of $1.61 per share, implying a $6.44 annualized payout and a 2.5% yield; meanwhile, analysts now have a consensus rating of "Reduce" with an average target price of $271.92.

Entropy Technologies LP purchased a new stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 22,841 shares of the industrial products company's stock, valued at approximately $5,626,000.

A number of other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of Illinois Tool Works by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 26,887,218 shares of the industrial products company's stock valued at $6,622,322,000 after buying an additional 189,229 shares in the last quarter. State Street Corp boosted its stake in shares of Illinois Tool Works by 1.2% in the fourth quarter. State Street Corp now owns 12,596,511 shares of the industrial products company's stock valued at $3,122,535,000 after buying an additional 151,864 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Illinois Tool Works by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 6,944,651 shares of the industrial products company's stock valued at $1,709,734,000 after buying an additional 184,301 shares in the last quarter. Capital Research Global Investors boosted its stake in shares of Illinois Tool Works by 3.2% in the fourth quarter. Capital Research Global Investors now owns 4,636,392 shares of the industrial products company's stock valued at $1,141,948,000 after buying an additional 142,837 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its stake in shares of Illinois Tool Works by 1.5% in the fourth quarter. Fisher Asset Management LLC now owns 3,705,081 shares of the industrial products company's stock valued at $912,562,000 after buying an additional 54,519 shares in the last quarter. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Illinois Tool Works Stock Up 1.1%

ITW opened at $257.22 on Friday. The business's fifty day moving average is $258.18 and its two-hundred day moving average is $262.87. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.86 and a current ratio of 1.19. The company has a market cap of $74.00 billion, a price-to-earnings ratio of 23.88, a PEG ratio of 4.42 and a beta of 1.01. Illinois Tool Works Inc. has a one year low of $238.82 and a one year high of $303.15.

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 (EPS) for the quarter, beating 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 business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the prior year, the business earned $2.38 earnings per share. The business's 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. Analysts anticipate that Illinois Tool Works Inc. will post 11.37 EPS for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a $1.61 dividend. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Tuesday, June 30th. Illinois Tool Works's dividend payout ratio is currently 59.80%.

Insider Activity

In related news, Director Jennifer F. Scanlon acquired 806 shares of Illinois Tool Works stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the transaction, the director directly owned 1,652 shares of the company's stock, valued at $409,679.48. The trade was a 95.27% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 0.83% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ITW. Weiss Ratings downgraded Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Barclays decreased their target price on 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. Wells Fargo & Company boosted their target price on Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a research report on Monday, May 4th. Wolfe Research boosted their target price on Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a research report on Friday, February 27th. Finally, JPMorgan Chase & Co. decreased their target price on Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating on the stock in a research report on Friday, May 1st. One investment 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, the stock has a consensus rating of "Reduce" and an average target price of $271.92.

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.