JPMorgan Chase & Co. Buys 160,009 Shares of Illinois Tool Works Inc. (NYSE:ITW)

Key Points

• JPMorgan Chase & Co. increased its stake in Illinois Tool Works by 14.5% during the first quarter, owning over 1.26 million shares valued at approximately $313.7 million.
• The company recently announced a quarterly dividend increase to $1.61 per share, up from $1.50, which translates to an annualized dividend of $6.44 and a yield of 2.5%.
• Analysts have elevated their price targets for Illinois Tool Works, with Citigroup raising its target from $254 to $265 and UBS Group increasing it from $243 to $255, reflecting a consensus rating of "Hold" for the stock.

JPMorgan Chase & Co. raised its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 14.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,265,005 shares of the industrial products company's stock after buying an additional 160,009 shares during the quarter. JPMorgan Chase & Co. owned about 0.43% of Illinois Tool Works worth $313,734,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the business. Northern Trust Corp lifted its holdings in shares of Illinois Tool Works by 3.9% during the fourth quarter. Northern Trust Corp now owns 13,667,653 shares of the industrial products company's stock worth $3,465,570,000 after buying an additional 508,188 shares during the last quarter. Capital Research Global Investors lifted its holdings in shares of Illinois Tool Works by 1.8% during the fourth quarter. Capital Research Global Investors now owns 4,132,493 shares of the industrial products company's stock worth $1,047,837,000 after buying an additional 71,934 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Illinois Tool Works by 0.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 2,528,833 shares of the industrial products company's stock worth $627,176,000 after buying an additional 11,854 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Illinois Tool Works by 26,372.8% in the first quarter. GAMMA Investing LLC now owns 2,065,675 shares of the industrial products company's stock valued at $5,123,080,000 after purchasing an additional 2,057,872 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Illinois Tool Works by 11.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,059,119 shares of the industrial products company's stock valued at $522,110,000 after purchasing an additional 209,671 shares in the last quarter. 79.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Citigroup upped their target price on Illinois Tool Works from $254.00 to $265.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Robert W. Baird upped their target price on Illinois Tool Works from $239.00 to $244.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Bank of America lowered Illinois Tool Works from a "neutral" rating to an "underperform" rating and set a $220.00 target price for the company. in a research note on Wednesday, May 7th. UBS Group upped their target price on Illinois Tool Works from $243.00 to $255.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Finally, Evercore ISI cut their target price on Illinois Tool Works from $252.00 to $249.00 and set an "underperform" rating for the company in a research note on Monday, May 19th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $259.33.

Insider Activity at Illinois Tool Works

In other news, Director David Byron Smith, Jr. purchased 872 shares of the firm's stock in a transaction that occurred on Monday, June 2nd. The shares were acquired at an average price of $241.16 per share, for a total transaction of $210,291.52. Following the completion of the acquisition, the director directly owned 122,884 shares in the company, valued at approximately $29,634,705.44. The trade was a 0.71% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.88% of the company's stock.

Illinois Tool Works Price Performance

Shares of ITW stock traded down $4.06 during trading hours on Friday, hitting $258.43. 1,115,058 shares of the company's stock were exchanged, compared to its average volume of 1,044,403. The stock's 50-day moving average is $253.84 and its 200-day moving average is $250.15. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.59 and a quick ratio of 1.15. The stock has a market cap of $75.33 billion, a price-to-earnings ratio of 22.65, a price-to-earnings-growth ratio of 5.66 and a beta of 1.09. 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 EPS for the quarter, topping the consensus estimate of $2.56 by $0.02. The company had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $4.01 billion. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%. The business's revenue for the quarter was up .6% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.54 earnings per share. As a group, research analysts forecast that Illinois Tool Works Inc. will post 10.39 EPS for the current year.

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Tuesday, September 30th will be issued a dividend of $1.61 per share. The ex-dividend date is Tuesday, September 30th. This is a boost from Illinois Tool Works's previous quarterly dividend of $1.50. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. Illinois Tool Works's dividend payout ratio (DPR) is currently 52.59%.

Illinois Tool Works Profile

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.