Illinois Tool Works Inc. $ITW Stake Lessened by Fifth Third Bancorp

Key Points

• Fifth Third Bancorp reduced its stake in Illinois Tool Works by 2.9%, now owning approximately 0.10% of the company, valued at $73.35 million.
• Illinois Tool Works recently declared an increased quarterly dividend of $1.61 per share, up from $1.50, representing a 2.5% yield.
• Brokerages have varying target prices for the stock, with a consensus target price of $260.67 and a general rating of "Reduce."

Fifth Third Bancorp lowered its holdings in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 2.9% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 296,678 shares of the industrial products company's stock after selling 8,965 shares during the period. Fifth Third Bancorp owned approximately 0.10% of Illinois Tool Works worth $73,354,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the business. Brighton Jones LLC raised its holdings in shares of Illinois Tool Works by 5.3% during the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after acquiring an additional 277 shares in the last quarter. Bison Wealth LLC raised its holdings in shares of Illinois Tool Works by 2.3% during the fourth quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after acquiring an additional 81 shares in the last quarter. Two Sigma Investments LP raised its holdings in shares of Illinois Tool Works by 23.4% during the fourth quarter. Two Sigma Investments LP now owns 6,214 shares of the industrial products company's stock worth $1,576,000 after acquiring an additional 1,180 shares in the last quarter. Toronto Dominion Bank raised its holdings in shares of Illinois Tool Works by 7.4% during the fourth quarter. Toronto Dominion Bank now owns 130,387 shares of the industrial products company's stock worth $33,061,000 after acquiring an additional 8,975 shares in the last quarter. Finally, Ascent Group LLC raised its holdings in shares of Illinois Tool Works by 15.6% during the fourth quarter. Ascent Group LLC now owns 4,739 shares of the industrial products company's stock worth $1,202,000 after acquiring an additional 640 shares in the last quarter. Hedge funds and other institutional investors own 79.77% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ITW. Stifel Nicolaus increased their price objective on Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Wells Fargo & Company raised their target price on Illinois Tool Works from $235.00 to $250.00 and gave the company an "underweight" rating in a report on Thursday, July 31st. Evercore ISI set a $265.00 target price on Illinois Tool Works and gave the company an "underperform" rating in a report on Tuesday, August 19th. UBS Group raised their target price on Illinois Tool Works from $243.00 to $255.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. Finally, Citigroup raised their target price on Illinois Tool Works from $254.00 to $265.00 and gave the company a "neutral" rating in a report on Monday, July 14th. One 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. Based on data from MarketBeat.com, Illinois Tool Works has a consensus rating of "Reduce" and an average target price of $260.67.

Illinois Tool Works Trading Up 0.0%

Shares of NYSE:ITW opened at $260.98 on Wednesday. The company has a market cap of $76.08 billion, a P/E ratio of 22.87, a P/E/G ratio of 5.63 and a beta of 1.10. The stock's 50-day moving average is $261.24 and its 200-day moving average is $250.76. 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 quick ratio of 1.15 and a current ratio of 1.59.

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

Illinois Tool Works Increases Dividend

The firm 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 is a positive change from Illinois Tool Works's previous quarterly dividend of $1.50. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Tuesday, September 30th. Illinois Tool Works's dividend payout ratio is 52.59%.

Insider Buying and Selling

In other Illinois Tool Works news, CAO Randall J. Scheuneman sold 6,802 shares of the firm's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $265.08, for a total transaction of $1,803,074.16. Following the completion of the transaction, the chief accounting officer owned 10,314 shares in the company, valued at $2,734,035.12. This trade represents a 39.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.88% of the stock is currently owned by corporate insiders.

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.

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