Illinois Tool Works Inc. $ITW Shares Bought by King Luther Capital Management Corp

Key Points

• King Luther Capital Management increased its Illinois Tool Works stake by 6.4% in the fourth quarter, buying 8,214 additional shares and bringing its position to 136,149 shares worth about $33.5 million.
• Institutional ownership remains high, with several large funds also boosting their holdings and hedge funds and other institutions now owning 79.77% of the stock.
• Illinois Tool Works posted solid results, beating quarterly EPS estimates and raising full-year guidance, while also declaring a $1.61 quarterly dividend for a 2.6% yield.

King Luther Capital Management Corp grew its position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 6.4% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 136,149 shares of the industrial products company's stock after purchasing an additional 8,214 shares during the period. King Luther Capital Management Corp's holdings in Illinois Tool Works were worth $33,533,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of ITW. Northwestern Mutual Wealth Management Co. lifted 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 acquiring an additional 365,915 shares during the period. Caisse de depot et placement du Quebec lifted its holdings in shares of Illinois Tool Works by 293.0% during the 3rd 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 acquiring an additional 316,512 shares during the period. SG Americas Securities LLC lifted its holdings in shares of Illinois Tool Works by 316.3% during the 4th quarter. SG Americas Securities LLC now owns 366,012 shares of the industrial products company's stock worth $90,149,000 after acquiring an additional 278,085 shares during the period. Marshall Wace LLP lifted its holdings in shares of Illinois Tool Works by 161.3% during the 3rd quarter. Marshall Wace LLP now owns 400,152 shares of the industrial products company's stock worth $104,344,000 after acquiring an additional 246,994 shares during the period. Finally, UBS Group AG lifted its holdings in shares of Illinois Tool Works by 10.7% during the 4th quarter. UBS Group AG now owns 2,101,383 shares of the industrial products company's stock worth $517,571,000 after acquiring an additional 203,863 shares during the period. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Illinois Tool Works Trading Down 0.7%

NYSE ITW opened at $250.43 on Wednesday. Illinois Tool Works Inc. has a one year low of $238.82 and a one year high of $303.15. The company's 50 day moving average price is $260.94 and its 200 day moving average price is $262.32. 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 firm has a market capitalization of $72.05 billion, a price-to-earnings ratio of 23.25, a PEG ratio of 4.33 and a beta of 1.04.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, beating the consensus estimate of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The firm had revenue of $4.02 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the firm posted $2.38 earnings per share. Illinois Tool Works's revenue for the quarter was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, sell-side analysts predict that Illinois Tool Works Inc. will post 11.37 EPS for the current year.

Illinois Tool Works Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be issued a $1.61 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $6.44 annualized dividend and a yield of 2.6%. Illinois Tool Works's dividend payout ratio (DPR) is presently 59.80%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ITW. Weiss Ratings reiterated a "buy (b-)" rating on shares of Illinois Tool Works in a report on Monday, April 27th. Wells Fargo & Company increased their price objective on shares of Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a report on Monday, May 4th. Wolfe Research increased their price objective on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a report on Friday, February 27th. Robert W. Baird set a $278.00 price objective on shares of Illinois Tool Works in a report on Wednesday, February 4th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $271.92.

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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