Illinois Tool Works Inc. $ITW Shares Purchased by Hudson Bay Capital Management LP

Key Points

• Hudson Bay Capital Management boosted its stake in Illinois Tool Works by 123.4% in Q3, buying an additional 12,741 shares to own 23,063 shares valued at about $6.01 million.
• A major insider sale occurred: Director Ernest Scott Santi sold 167,345 shares at an average price of $290.93 (≈$48.7 million), representing a 39.27% reduction in his position.
• Illinois Tool Works slightly beat quarterly estimates (EPS $2.72 vs. $2.69), set FY2026 guidance of 11.00–11.40 EPS, and declared a quarterly dividend of $1.61 ($6.44 annual, ~2.5% yield).

Hudson Bay Capital Management LP boosted its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 123.4% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 23,063 shares of the industrial products company's stock after purchasing an additional 12,741 shares during the quarter. Hudson Bay Capital Management LP's holdings in Illinois Tool Works were worth $6,014,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. State Street Corp grew its position in shares of Illinois Tool Works by 0.9% during the second quarter. State Street Corp now owns 12,476,310 shares of the industrial products company's stock worth $3,103,167,000 after buying an additional 108,919 shares in the last quarter. Capital Research Global Investors raised its holdings in Illinois Tool Works by 3.0% in the third quarter. Capital Research Global Investors now owns 4,493,555 shares of the industrial products company's stock valued at $1,171,740,000 after acquiring an additional 131,702 shares in the last quarter. Fisher Asset Management LLC boosted its stake in Illinois Tool Works by 1.5% during the 3rd quarter. Fisher Asset Management LLC now owns 3,650,562 shares of the industrial products company's stock valued at $951,921,000 after acquiring an additional 55,416 shares during the last quarter. Norges Bank bought a new position in Illinois Tool Works during the 2nd quarter valued at $821,888,000. Finally, Ameriprise Financial Inc. grew its holdings in Illinois Tool Works by 1.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 2,587,639 shares of the industrial products company's stock worth $674,871,000 after acquiring an additional 33,171 shares in the last quarter. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on ITW shares. Citigroup upped their target price on shares of Illinois Tool Works from $271.00 to $284.00 and gave the company a "neutral" rating in a research note on Wednesday, February 4th. UBS Group reiterated a "neutral" rating and issued a $285.00 price target on shares of Illinois Tool Works in a research note on Wednesday, February 4th. Weiss Ratings reissued a "buy (b-)" rating on shares of Illinois Tool Works in a report on Wednesday, January 28th. Wells Fargo & Company upped their price objective on Illinois Tool Works from $250.00 to $270.00 and gave the company an "underweight" rating in a research note on Wednesday, February 4th. Finally, 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. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $275.69.

Illinois Tool Works Stock Down 1.1%

Shares of Illinois Tool Works stock opened at $257.76 on Friday. The stock has a market capitalization of $74.28 billion, a price-to-earnings ratio of 24.57, a PEG ratio of 13.92 and a beta of 1.13. Illinois Tool Works Inc. has a twelve month low of $214.66 and a twelve month high of $303.15. The company has a current ratio of 1.21, a quick ratio of 0.89 and a debt-to-equity ratio of 2.07. The business's 50 day simple moving average is $276.32 and its 200-day simple moving average is $260.63.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.69 by $0.03. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The business's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. Equities research analysts forecast that Illinois Tool Works Inc. will post 10.39 earnings per share for the current year.

Illinois Tool Works Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $1.61 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. Illinois Tool Works's payout ratio is 61.39%.

Insider Activity

In related news, Director Ernest Scott Santi sold 167,345 shares of Illinois Tool Works stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the sale, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. This trade represents a 39.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Axel Beck sold 4,223 shares of the business's stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the transaction, the executive vice president directly owned 5,789 shares of the company's stock, valued at $1,680,083.58. The trade was a 42.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.88% of the stock is currently owned by corporate 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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