Illinois Tool Works Inc. $ITW Stock Holdings Lowered by Gateway Investment Advisers LLC

Key Points

• Gateway Investment Advisers LLC reduced its holdings in Illinois Tool Works Inc. by 57.6%, owning 1,593 shares worth approximately $394,000 after selling 2,168 shares in the 2nd quarter.
• Illinois Tool Works announced a quarterly dividend of $1.61 per share, increasing from the previous $1.50 and reflecting an annualized yield of 2.4%.
• Recent earnings reported a $2.58 EPS for the quarter, slightly exceeding estimates, with revenues of $4.05 billion, marking a 0.6% year-over-year growth.

Gateway Investment Advisers LLC lessened its stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 57.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,593 shares of the industrial products company's stock after selling 2,168 shares during the period. Gateway Investment Advisers LLC's holdings in Illinois Tool Works were worth $394,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Ameriflex Group Inc. acquired a new stake in Illinois Tool Works during the fourth quarter valued at approximately $26,000. von Borstel & Associates Inc. bought a new stake in shares of Illinois Tool Works in the 1st quarter valued at approximately $26,000. Saudi Central Bank acquired a new stake in shares of Illinois Tool Works during the 1st quarter valued at approximately $29,000. 1248 Management LLC bought a new position in Illinois Tool Works during the first quarter worth $30,000. Finally, Banque Transatlantique SA acquired a new position in Illinois Tool Works in the first quarter worth $30,000. 79.77% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ITW. Wells Fargo & Company increased their target price on shares of Illinois Tool Works from $235.00 to $250.00 and gave the stock an "underweight" rating in a report on Thursday, July 31st. UBS Group increased their price objective on shares of Illinois Tool Works from $243.00 to $255.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st. Barclays lifted their target price on Illinois Tool Works from $240.00 to $243.00 and gave the company an "equal weight" rating in a research note on Monday, August 4th. Stifel Nicolaus increased their price target on Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Evercore ISI set a $265.00 price objective on Illinois Tool Works and gave the company an "underperform" rating in a research report on Tuesday, August 19th. One equities research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $260.67.

Insider Activity

In other news, CAO Randall J. Scheuneman sold 6,802 shares of the business's stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $265.08, for a total value of $1,803,074.16. Following the sale, the chief accounting officer owned 10,314 shares of the company's stock, valued at approximately $2,734,035.12. The trade was a 39.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.88% of the company's stock.

Illinois Tool Works Stock Performance

Shares of NYSE ITW traded down $0.79 during midday trading on Monday, reaching $261.07. 692,305 shares of the company traded hands, compared to its average volume of 821,870. The company has a market cap of $76.10 billion, a price-to-earnings ratio of 22.88, a PEG ratio of 5.65 and a beta of 1.10. The stock has a 50-day moving average price of $261.15 and a 200 day moving average price of $250.69. Illinois Tool Works Inc. has a 52 week low of $214.66 and a 52 week high of $279.13. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.59 and a quick ratio of 1.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Wednesday, July 30th. The industrial products company reported $2.58 EPS for the quarter, beating the consensus estimate of $2.56 by $0.02. Illinois Tool Works had a net margin of 21.31% and a return on equity of 90.89%. The firm had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $4.01 billion. During the same quarter last year, the company earned $2.54 EPS. Illinois Tool Works's quarterly revenue was up .6% on a year-over-year basis. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS. Sell-side analysts anticipate that Illinois Tool Works Inc. will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $1.61 per share. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 30th. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.50. Illinois Tool Works's dividend payout ratio is 52.59%.

Illinois Tool Works Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.