Illinois Tool Works Inc. $ITW Shares Bought by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management boosted its stake in Illinois Tool Works by 148.2% in the fourth quarter, ending with 35,276 shares valued at about $8.9 million.
• Illinois Tool Works reported better-than-expected quarterly results, with EPS of $2.66 versus estimates of $2.57 and revenue of $4.02 billion, up 4.6% year over year.
• The company also declared a quarterly dividend of $1.61 per share, implying an annualized payout of $6.44 and a 2.4% yield.

Rakuten Investment Management Inc. raised its holdings in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 148.2% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 35,276 shares of the industrial products company's stock after buying an additional 21,064 shares during the period. Rakuten Investment Management Inc.'s holdings in Illinois Tool Works were worth $8,898,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in ITW. Norges Bank acquired a new stake in shares of Illinois Tool Works during the fourth quarter worth about $808,351,000. Northwestern Mutual Wealth Management Co. increased its position in shares of Illinois Tool Works by 1,517.9% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 390,022 shares of the industrial products company's stock worth $96,062,000 after purchasing an additional 365,915 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Illinois Tool Works by 11.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,311,357 shares of the industrial products company's stock worth $815,587,000 after purchasing an additional 353,056 shares in the last quarter. Caisse de depot et placement du Quebec increased its position in shares of Illinois Tool Works by 293.0% during the third 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 purchasing an additional 316,512 shares in the last quarter. Finally, Pinebridge Investments LLC acquired a new stake in shares of Illinois Tool Works during the fourth quarter worth about $76,764,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $265.92 on Wednesday. The stock has a market capitalization of $76.50 billion, a PE ratio of 24.69, a price-to-earnings-growth ratio of 4.51 and a beta of 1.01. 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 $258.41 and its 200 day moving average price is $263.23. The company has a quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.09. The firm 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%.The firm's revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter 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. As a group, equities research analysts forecast that Illinois Tool Works Inc. will post 11.37 EPS for the current year.

Illinois Tool Works Dividend Announcement

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 given a dividend of $1.61 per share. The ex-dividend date is Tuesday, June 30th. This represents a $6.44 annualized dividend and a yield of 2.4%. Illinois Tool Works's payout ratio is presently 59.80%.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon bought 806 shares of the company's stock in a transaction on Tuesday, June 2nd. The shares were bought at an average price of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director owned 1,652 shares of the company's stock, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.83% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Evercore cut their target price on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. Wolfe Research lifted their target price 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. The Goldman Sachs Group reiterated a "sell" rating and set a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. Wells Fargo & Company lifted their target price on Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a research report on Monday, May 4th. Finally, Barclays dropped their price target on Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 1st. One equities research 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.com, the stock currently has an average rating of "Reduce" and a consensus target price of $271.92.

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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