Illinois Tool Works Inc. $ITW Holdings Lifted by Royal Bank of Canada

Key Points

• Royal Bank of Canada increased its Illinois Tool Works stake by 2.5% in the first quarter, adding 18,487 shares to reach 772,673 shares valued at approximately $201.1 million. Institutional investors collectively own about 79.8% of ITW.
• ITW exceeded quarterly expectations, reporting $2.84 in EPS and $4.30 billion in revenue, with revenue up 6.1% year over year. Management raised its full-year 2026 EPS guidance to $11.35–$11.55 and expects 3%–4% organic growth.
• Analyst sentiment remains cautious, with one Buy, eight Hold and five Sell ratings producing a consensus “Reduce” rating and an average price target of $279.69. The company also pays a quarterly dividend of $1.61, equivalent to a 2.2% annual yield.

Royal Bank of Canada boosted its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 2.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 772,673 shares of the industrial products company's stock after buying an additional 18,487 shares during the period. Royal Bank of Canada owned approximately 0.27% of Illinois Tool Works worth $201,120,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently bought and sold shares of ITW. Y.D. More Investments Ltd purchased a new position in shares of Illinois Tool Works during the 4th quarter valued at $2,498,000. Aberdeen Group plc raised its holdings in shares of Illinois Tool Works by 4.7% during the fourth quarter. Aberdeen Group plc now owns 245,504 shares of the industrial products company's stock worth $60,468,000 after acquiring an additional 11,035 shares in the last quarter. Strs Ohio boosted its position in Illinois Tool Works by 20.5% during the fourth quarter. Strs Ohio now owns 83,263 shares of the industrial products company's stock valued at $20,508,000 after purchasing an additional 14,186 shares during the last quarter. Pacific Heights Asset Management LLC grew its stake in Illinois Tool Works by 15.0% in the fourth quarter. Pacific Heights Asset Management LLC now owns 115,000 shares of the industrial products company's stock valued at $28,324,000 after purchasing an additional 15,000 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Illinois Tool Works by 3.8% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 586,906 shares of the industrial products company's stock valued at $146,433,000 after purchasing an additional 21,481 shares in the last quarter. Hedge funds and other institutional investors own 79.77% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on ITW shares. Evercore cut their price target on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. UBS Group reissued a "neutral" rating and issued a $300.00 price target on shares of Illinois Tool Works in a research note on Wednesday. Wolfe Research reaffirmed an "underperform" rating and set a $286.00 price objective on shares of Illinois Tool Works in a research report on Thursday, July 9th. Citigroup reiterated a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Finally, Truist Financial boosted their target price on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, Illinois Tool Works presently has a consensus rating of "Reduce" and an average target price of $279.69.

Illinois Tool Works Stock Performance

ITW opened at $292.52 on Thursday. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.86 and a current ratio of 1.11. The company has a market cap of $84.16 billion, a PE ratio of 26.52, a price-to-earnings-growth ratio of 5.05 and a beta of 1.00. The stock has a 50-day moving average of $264.93 and a 200-day moving average of $267.92. Illinois Tool Works Inc. has a 52-week low of $238.82 and a 52-week high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share 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 business had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.19 billion. During the same period last year, the business earned $2.58 EPS. The firm'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. As a group, equities research analysts forecast that Illinois Tool Works Inc. will post 11.43 earnings per share for the current fiscal year.

Illinois Tool Works Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were given a $1.61 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.2%. Illinois Tool Works's dividend payout ratio (DPR) is currently 59.80%.

Insider Buying and Selling at Illinois Tool Works

In other news, Director Jennifer F. Scanlon acquired 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 purchase, the director owned 1,652 shares of the company's stock, valued at $409,679.48. This represents a 95.27% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.83% of the company's stock.

Illinois Tool Works News Summary

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Q2 results exceeded expectations: Revenue rose 6.1% year over year to $4.30 billion, ahead of the $4.19 billion consensus, while diluted EPS increased 10.1% to $2.84 versus estimates of $2.80. Organic revenue growth accelerated to 4.5%, led by strong demand in Welding, Test & Measurement and Electronics, and Polymers & Fluids. Reuters earnings report
• Positive Sentiment: Record profitability and cash flow supported the rally: Operating income reached a company-record $1.15 billion, operating margin expanded to 26.7%, and free cash flow increased 41% to $631 million. ITW returned more than $1.2 billion to shareholders in the quarter, including $750 million of share repurchases, and expects approximately $1.5 billion in repurchases for 2026. ITW Q2 results and guidance
• Positive Sentiment: Management raised its outlook: Full-year 2026 GAAP EPS guidance increased to $11.35-$11.55 from the prior outlook, while revenue growth guidance was raised to 4%-5% and organic growth guidance to 3%-4%. The company also expects free-cash-flow conversion above 100% of net income. ITW guidance announcement
• Positive Sentiment: JPMorgan raised its price target to $350 from $310 and upgraded its stance to “overweight,” signaling confidence that stronger industrial demand and ITW’s execution can support additional gains. Benzinga analyst update
• Neutral Sentiment: Analyst views remain mixed: Robert W. Baird lifted its target to $297 from $278 but maintained a “neutral” rating, suggesting limited upside at recent trading levels. The Fly analyst update
• Negative Sentiment: Investors may remain alert to ITW’s debt burden and uneven segment performance. Automotive OEM and Food Equipment growth was comparatively weak, while higher raw-material costs and acquisition-related amortization continued to pressure margins and GAAP EPS.

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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