Morningstar Investment Management LLC Decreases Holdings in Illinois Tool Works Inc. $ITW

Key Points

• Morningstar Investment Management cut its Illinois Tool Works stake by 36.9% in the first quarter, leaving it with 13,414 shares worth about $3.49 million.
• Illinois Tool Works reported better-than-expected Q1 earnings of $2.66 per share on $4.02 billion in revenue, with revenue up 4.6% year over year and FY 2026 EPS guidance set at 11.10–11.50.
• The stock was trading around $282.91 after a 2.2% move higher, while analysts remain cautious overall with a consensus rating of "Reduce" and a target price of $274.00.

Morningstar Investment Management LLC trimmed its position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 36.9% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 13,414 shares of the industrial products company's stock after selling 7,857 shares during the quarter. Morningstar Investment Management LLC's holdings in Illinois Tool Works were worth $3,492,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the company. Cresta Advisors Ltd. bought a new position in Illinois Tool Works in the fourth quarter valued at about $25,000. Motiv8 Investments LLC bought a new stake in shares of Illinois Tool Works during the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Illinois Tool Works during the 4th quarter valued at about $27,000. Lodestone Wealth Management LLC purchased a new stake in shares of Illinois Tool Works during the 4th quarter valued at about $28,000. Finally, Ares Financial Consulting LLC bought a new position in shares of Illinois Tool Works in the 4th quarter worth approximately $31,000. Institutional investors own 79.77% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ITW. Truist Financial raised their price objective on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a report on Thursday, July 2nd. The Goldman Sachs Group reiterated a "sell" rating and issued a $254.00 price target on shares of Illinois Tool Works in a research report on Thursday, April 30th. Weiss Ratings cut shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Citigroup reissued a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. Finally, Wells Fargo & Company upped their price objective on Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $274.00.

Illinois Tool Works Trading Up 2.2%

Illinois Tool Works stock opened at $282.91 on Friday. Illinois Tool Works Inc. has a 12-month low of $238.82 and a 12-month high of $303.15. The firm has a market capitalization of $81.39 billion, a price-to-earnings ratio of 26.27, a P/E/G ratio of 4.86 and a beta of 1.00. The firm has a 50 day moving average of $262.39 and a 200 day moving average of $266.96. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04.

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

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Tuesday, June 30th were paid a dividend of $1.61 per share. The ex-dividend date was Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.3%. Illinois Tool Works's payout ratio is 59.80%.

Insiders Place Their Bets

In other news, Director Jennifer F. Scanlon bought 806 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was bought at an average price of $247.99 per share, with a total value of $199,879.94. Following the acquisition, the director owned 1,652 shares of the company's stock, valued at approximately $409,679.48. This represents a 95.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.83% of the company's stock.

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.

Want to see what other hedge funds are holding ITW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Illinois Tool Works Inc. (NYSE:ITW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.