Rafferty Asset Management LLC Trims Stake in Illinois Tool Works Inc. $ITW

Key Points

• Rafferty Asset Management LLC has reduced its stake in Illinois Tool Works by 20.5%, owning 19,945 shares valued at $4.95 million after selling 5,156 shares in Q1.
• Illinois Tool Works recently announced an increase in its quarterly dividend to $1.61 per share, reflecting an annualized rate of $6.44 and a dividend yield of 2.4%.
• Despite a recent 0.4% decline in stock value, Illinois Tool Works reported strong earnings in its latest quarter, with $2.58 earnings per share, exceeding estimates.

Rafferty Asset Management LLC trimmed its position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 20.5% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 19,945 shares of the industrial products company's stock after selling 5,156 shares during the quarter. Rafferty Asset Management LLC's holdings in Illinois Tool Works were worth $4,947,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of ITW. Caisse DE Depot ET Placement DU Quebec boosted its position in shares of Illinois Tool Works by 12.0% in the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 1,677 shares of the industrial products company's stock worth $416,000 after purchasing an additional 180 shares in the last quarter. Freedom Investment Management Inc. boosted its position in shares of Illinois Tool Works by 33.2% in the 1st quarter. Freedom Investment Management Inc. now owns 1,401 shares of the industrial products company's stock worth $348,000 after purchasing an additional 349 shares in the last quarter. Synovus Financial Corp boosted its position in shares of Illinois Tool Works by 6.9% in the 1st quarter. Synovus Financial Corp now owns 3,004 shares of the industrial products company's stock worth $745,000 after purchasing an additional 195 shares in the last quarter. Jump Financial LLC boosted its position in shares of Illinois Tool Works by 1,093.1% in the 1st quarter. Jump Financial LLC now owns 23,934 shares of the industrial products company's stock worth $5,936,000 after purchasing an additional 21,928 shares in the last quarter. Finally, Biondo Investment Advisors LLC boosted its position in shares of Illinois Tool Works by 4.2% in the 1st quarter. Biondo Investment Advisors LLC now owns 40,885 shares of the industrial products company's stock worth $10,140,000 after purchasing an additional 1,641 shares in the last quarter. 79.77% of the stock is owned by institutional investors.

Illinois Tool Works Stock Performance

ITW traded down $1.02 during mid-day trading on Friday, reaching $264.73. 963,377 shares of the company traded hands, compared to its average volume of 912,597. The stock has a market capitalization of $77.17 billion, a P/E ratio of 23.20, a P/E/G ratio of 5.71 and a beta of 1.10. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40. The company's fifty day moving average price is $258.01 and its 200-day moving average price is $250.59. Illinois Tool Works Inc. has a 52-week low of $214.66 and a 52-week high of $279.13.

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

Illinois Tool Works Increases Dividend

The business also recently announced 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. The ex-dividend date is Tuesday, September 30th. This represents a $6.44 dividend on an annualized basis and a yield of 2.4%. This is a boost from Illinois Tool Works's previous quarterly dividend of $1.50. Illinois Tool Works's dividend payout ratio (DPR) is presently 52.59%.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Stifel Nicolaus boosted 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. Barclays boosted their price target on Illinois Tool Works from $240.00 to $243.00 and gave the stock an "equal weight" rating in a research report on Monday, August 4th. UBS Group boosted their price objective on shares of Illinois Tool Works from $243.00 to $255.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Citigroup boosted their price objective on shares of Illinois Tool Works from $254.00 to $265.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Finally, Evercore ISI set a $265.00 price objective on shares of Illinois Tool Works and gave the stock an "underperform" rating in a report on Tuesday, August 19th. One analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $260.67.

Insiders Place Their Bets

In related news, Director David Byron Smith, Jr. bought 872 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was acquired at an average cost of $241.16 per share, for a total transaction of $210,291.52. Following the purchase, the director owned 122,884 shares in the company, valued at approximately $29,634,705.44. This represents a 0.71% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.88% of the company's stock.

About Illinois Tool Works

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.