Principal Financial Group Inc. Has $86.40 Million Stock Holdings in Illinois Tool Works Inc. $ITW

Key Points

• Principal Financial Group increased its stake in Illinois Tool Works by 1.3% in the first quarter, bringing its holding to 331,946 shares worth about $86.4 million.
• Illinois Tool Works reported stronger-than-expected quarterly results, with EPS of $2.66 versus the $2.57 estimate and revenue of $4.02 billion, up 4.6% year over year.
• The company continues to return cash to shareholders, paying a quarterly dividend of $1.61 per share, or $6.44 annualized for a 2.4% yield.

Principal Financial Group Inc. grew its stake in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 1.3% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 331,946 shares of the industrial products company's stock after acquiring an additional 4,372 shares during the quarter. Principal Financial Group Inc. owned about 0.12% of Illinois Tool Works worth $86,402,000 as of its most recent SEC filing.

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

Insider Activity at Illinois Tool Works

In other news, Director Jennifer F. Scanlon purchased 806 shares of the business's stock in a transaction dated 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 completion of the purchase, the director owned 1,652 shares of the company's stock, valued at $409,679.48. This trade represents a 95.27% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders own 0.83% of the company's stock.

Illinois Tool Works Price Performance

Shares of NYSE:ITW opened at $271.60 on Thursday. 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 2.04, a current ratio of 1.19 and a quick ratio of 0.86. The company has a market cap of $78.14 billion, a price-to-earnings ratio of 25.22, a PEG ratio of 4.68 and a beta of 1.00. The firm has a 50 day simple moving average of $258.90 and a 200 day simple moving average of $265.74.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings results 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 net margin of 19.32% and a return on equity of 97.36%. The company had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the prior year, the business earned $2.38 earnings per share. The company's revenue for the quarter was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. Research analysts predict that Illinois Tool Works Inc. will post 11.37 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were given a $1.61 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $6.44 annualized dividend and a yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is currently 59.80%.

Analysts Set New Price Targets

ITW has been the topic of a number of recent analyst reports. Wells Fargo & Company lifted 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 note on Monday, May 4th. Evercore cut their target price on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Weiss Ratings lowered Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Wolfe Research reissued an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a report on Thursday, July 9th. Finally, JPMorgan Chase & Co. upped their price objective on Illinois Tool Works from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $274.00.

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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