Illinois Tool Works Inc. $ITW Stock Holdings Trimmed by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group trimmed its Illinois Tool Works stake by 6.4% in the first quarter, selling 42,780 shares and leaving it with 628,818 shares valued at about $163.7 million.
• Illinois Tool Works reported better-than-expected quarterly results, posting EPS of $2.66 versus $2.57 expected and revenue of $4.02 billion, up 4.6% year over year.
• Wall Street sentiment remains cautious: analysts currently have a consensus rating of “Reduce” with an average price target of $272.85, even as the stock recently traded near $265.26 and the company announced a $1.61 quarterly dividend.

Sumitomo Mitsui Trust Group Inc. lowered its position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 6.4% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 628,818 shares of the industrial products company's stock after selling 42,780 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.22% of Illinois Tool Works worth $163,675,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. Brighton Jones LLC increased its holdings in shares of Illinois Tool Works by 5.3% in the 4th quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock valued at $1,399,000 after acquiring an additional 277 shares during the last quarter. Bison Wealth LLC boosted its holdings in Illinois Tool Works by 2.3% in the fourth quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after purchasing an additional 81 shares during the period. Sivia Capital Partners LLC boosted its holdings in Illinois Tool Works by 20.6% in the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock worth $257,000 after purchasing an additional 177 shares during the period. Sei Investments Co. increased its stake in Illinois Tool Works by 22.0% during the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock valued at $26,401,000 after purchasing an additional 19,248 shares during the last quarter. Finally, Treasurer of the State of North Carolina raised its holdings in shares of Illinois Tool Works by 2.2% during the second quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock worth $33,845,000 after purchasing an additional 2,890 shares during the period. Institutional investors and hedge funds own 79.77% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on ITW shares. Wolfe Research restated an "underperform" rating and issued a $286.00 price target on shares of Illinois Tool Works in a research report on Thursday. The Goldman Sachs Group reiterated a "sell" rating and set a $254.00 price objective on shares of Illinois Tool Works in a research note on Thursday, April 30th. Wells Fargo & Company raised their target price on shares of Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a report on Monday, May 4th. JPMorgan Chase & Co. decreased their target price on Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Finally, Evercore dropped their price target on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $272.85.

Illinois Tool Works Trading Up 0.1%

Illinois Tool Works stock opened at $265.26 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 quick ratio of 0.86, a current ratio of 1.19 and a debt-to-equity ratio of 2.04. The firm has a market capitalization of $76.31 billion, a price-to-earnings ratio of 24.63, a PEG ratio of 4.56 and a beta of 1.00. The firm has a 50-day moving average price of $257.98 and a two-hundred day moving average price of $265.20.

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

Illinois Tool Works Dividend Announcement

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

Insider Activity at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon purchased 806 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average cost of $247.99 per share, with a total value of $199,879.94. Following the completion of the acquisition, the director owned 1,652 shares of the company's stock, valued at approximately $409,679.48. This trade represents a 95.27% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.83% of the company's stock.

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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