Harbor Investment Advisory LLC Reduces Stake in Illinois Tool Works Inc. $ITW

Key Points

• Harbor Investment Advisory LLC cut its Illinois Tool Works stake by 87.5% in the first quarter, selling 5,827 shares and leaving it with 836 shares valued at about $218,000.
• Analysts are generally cautious on ITW: the stock has a consensus rating of “Reduce” with an average target price of $273.54, and several firms recently trimmed or adjusted their price targets.
• Illinois Tool Works reported better-than-expected quarterly earnings of $2.66 per share and revenue of $4.02 billion, and it announced a quarterly dividend of $1.61 per share to be paid July 10.

Harbor Investment Advisory LLC lessened its stake in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 87.5% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 836 shares of the industrial products company's stock after selling 5,827 shares during the period. Harbor Investment Advisory LLC's holdings in Illinois Tool Works were worth $218,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of ITW. Norges Bank acquired a new stake in shares of Illinois Tool Works during the 4th quarter worth approximately $808,351,000. Auto Owners Insurance Co lifted its stake in shares of Illinois Tool Works by 24,530.0% in the 4th quarter. Auto Owners Insurance Co now owns 628,065 shares of the industrial products company's stock valued at $15,469,000 after purchasing an additional 625,515 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Illinois Tool Works by 1,517.9% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 390,022 shares of the industrial products company's stock worth $96,062,000 after purchasing an additional 365,915 shares during the period. Goldman Sachs Group Inc. raised its holdings in Illinois Tool Works by 11.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,311,357 shares of the industrial products company's stock valued at $815,587,000 after buying an additional 353,056 shares during the period. Finally, Caisse de depot et placement du Quebec boosted its stake in Illinois Tool Works by 293.0% during the third quarter. Caisse de depot et placement du Quebec now owns 424,547 shares of the industrial products company's stock worth $110,705,000 after buying an additional 316,512 shares during the period. Institutional investors and hedge funds own 79.77% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. 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. Wells Fargo & Company raised their price target 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. Evercore cut their price objective on Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Citigroup raised their target price on Illinois Tool Works from $284.00 to $287.00 and gave the company a "neutral" rating in a report on Monday, May 4th. Finally, JPMorgan Chase & Co. cut their price target on shares of Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating on the stock in a research note on Friday, May 1st. One 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. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $273.54.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon purchased 806 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was bought at an average cost of $247.99 per share, with a total value of $199,879.94. Following the acquisition, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.83% of the stock is owned by company insiders.

Illinois Tool Works Stock Performance

Shares of ITW opened at $272.80 on Friday. Illinois Tool Works Inc. has a 1 year low of $238.82 and a 1 year high of $303.15. The stock has a 50-day simple moving average of $257.98 and a 200-day simple moving average of $264.60. 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 stock has a market capitalization of $78.49 billion, a PE ratio of 25.33, a PEG ratio of 4.62 and a beta of 0.99.

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 EPS for the quarter, beating analysts' consensus estimates of $2.57 by $0.09. The company had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The company's quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, analysts predict that Illinois Tool Works Inc. will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be paid a $1.61 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is currently 59.80%.

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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