Madison Asset Management LLC Takes Position in Illinois Tool Works Inc. $ITW

Key Points

• Madison Asset Management acquired 79,669 shares of Illinois Tool Works worth approximately $21.5 million, while institutional investors collectively own 79.77% of the company.
• Illinois Tool Works exceeded quarterly expectations with adjusted earnings of $2.84 per share and revenue of $4.30 billion, up 6.1% year over year. The company issued fiscal 2026 EPS guidance of $11.35–$11.55.
• The company raised its quarterly dividend to $1.72, or $6.88 annually, producing a 2.4% yield. Despite the increase, analysts maintain a consensus “Reduce” rating with an average price target of $281.25.

Madison Asset Management LLC purchased a new position in Illinois Tool Works Inc. (NYSE:ITW - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 79,669 shares of the industrial products company's stock, valued at approximately $21,548,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Cresta Advisors Ltd. bought a new position in Illinois Tool Works in the 4th quarter valued at $25,000. Motiv8 Investments LLC purchased a new stake in shares of Illinois Tool Works during the fourth quarter valued at $27,000. Kemnay Advisory Services Inc. bought a new position in shares of Illinois Tool Works in the fourth quarter worth about $27,000. Ares Financial Consulting LLC purchased a new position in Illinois Tool Works in the 4th quarter worth about $31,000. Finally, Wilkerson Advisory Group LLC lifted its holdings in Illinois Tool Works by 77.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 119 shares of the industrial products company's stock valued at $31,000 after buying an additional 52 shares in the last quarter. 79.77% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, CAO Matteo C. Pigozzo sold 277 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the transaction, the chief accounting officer owned 3,394 shares in the company, valued at $981,612.68. The trade was a 7.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jennifer F. Scanlon bought 806 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, with a total value of $199,879.94. Following the transaction, the director directly owned 1,652 shares of the company's stock, valued at $409,679.48. The trade was a 95.27% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.83% of the stock is owned by insiders.

Illinois Tool Works Trading Down 0.2%

ITW opened at $284.18 on Thursday. The company has a current ratio of 1.11, a quick ratio of 0.81 and a debt-to-equity ratio of 2.26. The firm has a market cap of $80.93 billion, a price-to-earnings ratio of 25.76, a PEG ratio of 4.81 and a beta of 0.99. Illinois Tool Works Inc. has a 12 month low of $238.82 and a 12 month high of $303.15. The stock has a fifty day moving average price of $276.94 and a 200-day moving average price of $271.27.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating analysts' consensus estimates of $2.80 by $0.04. The company had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.19 billion. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter last year, the company earned $2.58 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. As a group, equities research analysts anticipate that Illinois Tool Works Inc. will post 11.45 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be given a $1.72 dividend. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Wednesday, September 30th. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's payout ratio is presently 58.39%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on ITW shares. Wells Fargo & Company boosted their price objective on shares of Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Evercore decreased their price target on shares of Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Wolfe Research reiterated an "underperform" rating and issued a $286.00 price target on shares of Illinois Tool Works in a report on Thursday, July 9th. Weiss Ratings raised Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Finally, UBS Group restated a "neutral" rating and set a $300.00 price objective on shares of Illinois Tool Works in a report on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $281.25.

Illinois Tool Works Profile

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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