Illinois Tool Works Inc. $ITW Stock: Farther Finance Advisors LLC Increases Position

Key Points

• Farther Finance Advisors increased its Illinois Tool Works stake by 52.2% in the third quarter, bringing its holdings to 19,996 shares valued at approximately $5.15 million. Institutional investors collectively own 79.77% of ITW.
• Analyst sentiment remains cautious, with one Buy, seven Hold, and five Sell ratings. The consensus rating is “Reduce,” with an average price target of $273.42, below the stated share price of $263.94 only modestly.
• ITW reported quarterly EPS of $2.84 and revenue of $4.30 billion, exceeding estimates, while revenue rose 6.1% year over year. The company also raised its quarterly dividend to $1.72, equivalent to a 2.6% annualized yield.

Farther Finance Advisors LLC grew its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 52.2% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 19,996 shares of the industrial products company's stock after purchasing an additional 6,854 shares during the quarter. Farther Finance Advisors LLC's holdings in Illinois Tool Works were worth $5,145,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Illinois Tool Works in the 2nd quarter valued at about $6,296,349,000. State Street Corp lifted its stake in Illinois Tool Works by 1.0% in the second quarter. State Street Corp now owns 12,788,570 shares of the industrial products company's stock worth $3,479,219,000 after acquiring an additional 128,089 shares during the period. Bank of America Corp DE boosted its position in Illinois Tool Works by 2.5% during the 1st quarter. Bank of America Corp DE now owns 3,005,659 shares of the industrial products company's stock valued at $782,343,000 after acquiring an additional 72,951 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Illinois Tool Works in the second quarter worth about $603,166,000. Finally, Dimensional Fund Advisors LP grew its stake in shares of Illinois Tool Works by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,045,009 shares of the industrial products company's stock worth $532,261,000 after acquiring an additional 60,009 shares during the last quarter. 79.77% of the stock is owned by institutional investors.

Insider Activity

In other Illinois Tool Works news, Director Ernest Santi sold 41,431 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, the director directly owned 266,288 shares in the company, valued at $76,448,621.92. This trade represents a 13.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Matteo C. Pigozzo sold 277 shares of Illinois Tool Works stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $289.22, for a total value of $80,113.94. Following the sale, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at approximately $981,612.68. This represents a 7.55% decrease in their position. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts recently commented on ITW shares. Robert W. Baird upped their price objective on Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. UBS Group set a $277.00 target price on shares of Illinois Tool Works in a report on Friday. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Illinois Tool Works from $287.00 to $281.00 and set a "hold" rating for the company in a research note on Wednesday, September 30th. JPMorgan Chase & Co. downgraded Illinois Tool Works from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $350.00 to $270.00 in a research report on Friday. Finally, Citigroup restated a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, Illinois Tool Works has an average rating of "Reduce" and a consensus price target of $273.42.

Illinois Tool Works Price Performance

Shares of NYSE:ITW opened at $263.94 on Friday. The company's fifty day moving average price is $276.07 and its 200-day moving average price is $268.17. Illinois Tool Works Inc. has a one year low of $238.82 and a one year high of $303.15. The company has a debt-to-equity ratio of 2.26, a current ratio of 1.11 and a quick ratio of 0.81. The firm has a market capitalization of $75.17 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 2.85 and a beta of 0.96.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%. The firm had revenue of $4.30 billion for the quarter, compared to analysts' expectations of $4.19 billion. During the same period in the previous year, the firm earned $2.58 earnings per share. The business's revenue was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. On average, equities research analysts anticipate that Illinois Tool Works Inc. will post 11.44 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th were issued a $1.72 dividend. This represents a $6.88 annualized dividend and a dividend yield of 2.6%. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. The ex-dividend date of this dividend was Wednesday, September 30th. Illinois Tool Works's payout ratio is presently 62.38%.

About Illinois Tool Works

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces engineered products and systems for customers worldwide. The company serves a broad range of end markets, including automotive, construction, food service, welding, electronics, and general industry.

ITW's product portfolio includes automotive components and fasteners, commercial food equipment, welding equipment and consumables, test and measurement instruments, electronic components, polymers and fluids, construction fastening systems, and other specialized industrial products.

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