Hsbc Holdings PLC Boosts Holdings in Illinois Tool Works Inc. $ITW

Key Points

• HSBC Holdings PLC increased its stake in Illinois Tool Works by 42.1% in the fourth quarter, ending with 819,245 shares valued at about $201.9 million.
• Illinois Tool Works reported better-than-expected quarterly results, with EPS of $2.66 versus $2.57 expected and revenue of $4.02 billion, up 4.6% year over year.
• The company declared a quarterly dividend of $1.61 per share and maintained a yield of about 2.4%, while analysts currently hold a “Reduce” consensus rating with an average price target of $271.92.

Hsbc Holdings PLC boosted its stake in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 42.1% during the 4th quarter, according to its most recent filing with the SEC. The firm owned 819,245 shares of the industrial products company's stock after purchasing an additional 242,883 shares during the period. Hsbc Holdings PLC owned approximately 0.28% of Illinois Tool Works worth $201,939,000 at the end of the most recent quarter.

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

Illinois Tool Works Stock Up 0.1%

ITW stock opened at $264.38 on Friday. Illinois Tool Works Inc. has a 52 week low of $238.82 and a 52 week high of $303.15. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The firm has a 50-day simple moving average of $258.49 and a 200-day simple moving average of $263.43. The stock has a market capitalization of $76.06 billion, a P/E ratio of 24.55, a P/E/G ratio of 4.54 and a beta of 1.01.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted 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. The company had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $4.01 billion. Illinois Tool Works had a return on equity of 97.36% and a net margin of 19.32%.Illinois Tool Works's revenue was up 4.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. Equities analysts forecast that Illinois Tool Works Inc. will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

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

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Wells Fargo & Company lifted their price objective on shares of Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a report on Monday, May 4th. JPMorgan Chase & Co. cut their price target on Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Citigroup upped their price target on Illinois Tool Works from $284.00 to $287.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. Wolfe Research increased their price target 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, Evercore dropped their price objective on Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $271.92.

Insider Activity

In other Illinois Tool Works news, Director Jennifer F. Scanlon bought 806 shares of Illinois Tool Works stock in a transaction dated Tuesday, June 2nd. The stock was 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 approximately $409,679.48. This represents a 95.27% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.83% of the stock is owned by insiders.

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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