Illinois Tool Works Inc. $ITW Stake Boosted by Hsbc Holdings PLC

Key Points

• HSBC Holdings PLC boosted its stake in Illinois Tool Works by 42.1% in the fourth quarter, ending with 819,245 shares valued at about $201.9 million.
• Illinois Tool Works reported better-than-expected Q1 earnings, with EPS of $2.66 versus the $2.57 consensus, and revenue of $4.02 billion slightly ahead of estimates.
• The company declared a quarterly dividend of $1.61 per share, implying an annualized yield of about 2.4%; however, analysts remain cautious with an overall average rating of “Reduce”.

Hsbc Holdings PLC lifted its stake in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 42.1% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 819,245 shares of the industrial products company's stock after purchasing an additional 242,883 shares during the quarter. Hsbc Holdings PLC owned about 0.28% of Illinois Tool Works worth $201,939,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Cresta Advisors Ltd. acquired a new stake in shares of Illinois Tool Works in the 4th quarter worth about $25,000. Motiv8 Investments LLC acquired a new position in Illinois Tool Works during the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. acquired a new position in Illinois Tool Works during the 4th quarter valued at about $27,000. Lodestone Wealth Management LLC bought a new position in Illinois Tool Works in the 4th quarter worth about $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in shares of Illinois Tool Works in the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Illinois Tool Works Price Performance

Shares of Illinois Tool Works stock opened at $272.80 on Friday. Illinois Tool Works Inc. has a 52 week low of $238.82 and a 52 week high of $303.15. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04. The stock has a market cap of $78.49 billion, a PE ratio of 25.33, a price-to-earnings-growth ratio of 4.69 and a beta of 1.00. The company's 50-day moving average price is $258.09 and its two-hundred day moving average price is $264.65.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, topping analysts' consensus estimates of $2.57 by $0.09. The business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The business's revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the previous year, the firm earned $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. As a group, sell-side analysts anticipate that Illinois Tool Works Inc. will post 11.37 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a dividend of $1.61 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works's payout ratio is 59.80%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Evercore reduced their price objective on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. Wells Fargo & Company raised their target price on Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Citigroup lifted their target price on Illinois Tool Works from $284.00 to $287.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Barclays decreased their price target on Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating for the company in a research note on Wednesday, April 1st. Finally, Weiss Ratings lowered Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Illinois Tool Works currently has an average rating of "Reduce" and an average price target of $273.54.

Insider Activity

In related news, Director Jennifer F. Scanlon purchased 806 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was acquired at an average price of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director directly owned 1,652 shares of the company's stock, valued at $409,679.48. This trade represents a 95.27% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.83% of the stock is owned by company 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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