Hsbc Holdings PLC Sells 16,804 Shares of Illinois Tool Works Inc. $ITW

Key Points

• HSBC reduced its Illinois Tool Works stake by 2.1%, selling 16,804 shares and retaining 777,597 shares valued at approximately $210 million. Institutional investors and hedge funds collectively own 79.77% of ITW.
• Analyst sentiment remains mixed: JPMorgan raised its price target to $350 and upgraded the stock to overweight, but the consensus rating is “Reduce” with an average price target of $281.25.
• Illinois Tool Works beat quarterly expectations with $2.84 in EPS and $4.30 billion in revenue, while revenue grew 6.1% year over year. The company also raised its quarterly dividend to $1.72 per share, implying a 2.5% yield.

Hsbc Holdings PLC lowered its stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 2.1% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 777,597 shares of the industrial products company's stock after selling 16,804 shares during the period. Hsbc Holdings PLC owned 0.27% of Illinois Tool Works worth $209,959,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Illinois Tool Works in the 2nd quarter worth about $6,296,349,000. Norges Bank bought a new position in Illinois Tool Works in the fourth quarter valued at about $808,351,000. Bank of New York Mellon Corp acquired a new stake in shares of Illinois Tool Works during the second quarter valued at about $603,166,000. Legal & General Group Plc bought a new stake in shares of Illinois Tool Works during the second quarter worth about $500,748,000. Finally, Deutsche Bank AG bought a new stake in shares of Illinois Tool Works during the second quarter worth about $221,746,000. 79.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. lifted their target price on shares of Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. 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. Truist Financial lifted their price target on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a report on Thursday, July 2nd. Robert W. Baird boosted their price objective on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Finally, UBS Group restated a "neutral" rating and issued a $300.00 price objective on shares of Illinois Tool Works in a report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $281.25.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $269.99 on Monday. The stock has a market capitalization of $76.89 billion, a price-to-earnings ratio of 24.48, a PEG ratio of 3.66 and a beta of 0.98. Illinois Tool Works Inc. has a 52-week low of $238.82 and a 52-week high of $303.15. The stock's 50 day moving average price is $280.40 and its two-hundred day moving average price is $270.43. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a net margin of 19.39% and a return on equity of 101.72%. The firm had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.19 billion. During the same period in the previous year, the firm posted $2.58 earnings per share. The business's revenue was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. On average, equities analysts predict that Illinois Tool Works Inc. will post 11.45 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 30th will be given a dividend of $1.72 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. This represents a $6.88 annualized dividend and a dividend yield of 2.5%. Illinois Tool Works's payout ratio is presently 58.39%.

Insiders Place Their Bets

In other Illinois Tool Works news, Director Ernest Santi sold 41,431 shares of Illinois Tool Works stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total transaction of $11,894,425.79. Following the transaction, the director directly owned 266,288 shares of the company's stock, valued at $76,448,621.92. The trade was a 13.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matteo Pigozzo sold 277 shares of the company's 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 completion of the sale, the chief accounting officer owned 3,394 shares of the company's stock, valued at approximately $981,612.68. The trade was a 7.55% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.83% of the company's stock.

Illinois Tool Works 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.

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