HighTower Advisors LLC Purchases 264,312 Shares of Illinois Tool Works Inc. $ITW

Key Points

• HighTower Advisors increased its Illinois Tool Works stake by 170.4% in the second quarter, acquiring 264,312 additional shares and bringing its holdings to 419,452 shares worth approximately $113.4 million.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $281.25, despite JPMorgan raising its target to $350 and the company exceeding quarterly earnings and revenue expectations.
• Illinois Tool Works raised its quarterly dividend to $1.72 per share, or $6.88 annually, representing a 2.5% yield; insiders, however, sold shares during the period.

HighTower Advisors LLC lifted its position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 170.4% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 419,452 shares of the industrial products company's stock after acquiring an additional 264,312 shares during the period. HighTower Advisors LLC owned approximately 0.15% of Illinois Tool Works worth $113,449,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC increased its stake in shares of Illinois Tool Works by 5.3% in the 4th quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock valued at $1,399,000 after purchasing an additional 277 shares during the last quarter. Bison Wealth LLC lifted its position in shares of Illinois Tool Works by 2.3% during the 4th quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after buying an additional 81 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Illinois Tool Works by 20.6% in the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock valued at $257,000 after buying an additional 177 shares in the last quarter. Sei Investments Co. boosted its stake in Illinois Tool Works by 22.0% in the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock valued at $26,401,000 after buying an additional 19,248 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its position in Illinois Tool Works by 2.2% in the second quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock valued at $33,845,000 after acquiring an additional 2,890 shares during the last quarter. 79.77% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, Director Ernest Santi sold 41,431 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the sale, the director directly owned 266,288 shares of the company's stock, valued at approximately $76,448,621.92. This represents a 13.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Matteo Pigozzo sold 277 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $289.22, for a total transaction of $80,113.94. Following the sale, the chief accounting officer owned 3,394 shares of the company's stock, valued at approximately $981,612.68. This trade represents a 7.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ITW shares. Evercore dropped their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Wolfe Research reiterated an "underperform" rating and set a $286.00 price objective on shares of Illinois Tool Works in a research report on Thursday, July 9th. Robert W. Baird increased their price objective on shares of Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. raised their target price on shares of Illinois Tool Works from $310.00 to $350.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Finally, Weiss Ratings raised shares of Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Illinois Tool Works has a consensus rating of "Reduce" and an average target price of $281.25.

Illinois Tool Works Stock Down 0.0%

Shares of NYSE:ITW opened at $269.99 on Monday. The firm has a market cap of $76.89 billion, a P/E ratio of 24.48, a P/E/G ratio of 3.66 and a beta of 0.98. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. Illinois Tool Works Inc. has a 12-month low of $238.82 and a 12-month high of $303.15. The business has a fifty day simple moving average of $280.40 and a 200 day simple moving average of $270.43.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $2.84 EPS for the quarter, beating analysts' consensus estimates 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 previous year, the company posted $2.58 EPS. The business's revenue was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Analysts predict that Illinois Tool Works Inc. will post 11.45 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The company 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. This represents a $6.88 annualized dividend and a yield of 2.5%. The ex-dividend date is Wednesday, September 30th. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's dividend payout ratio (DPR) is 58.39%.

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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