Prudential PLC Raises Stock Holdings in Illinois Tool Works Inc. $ITW

Key Points

• Prudential PLC increased its stake in Illinois Tool Works by 71% in the fourth quarter, ending with 33,038 shares valued at about $8.1 million.
• Illinois Tool Works reported better-than-expected quarterly earnings, posting $2.66 EPS versus the $2.57 estimate, while revenue rose 4.6% year over year to $4.02 billion.
• The company announced a quarterly dividend of $1.61 per share, equal to a 2.6% yield, even as analysts remain cautious with a consensus rating of “Reduce” and an average price target of $271.92.

Prudential PLC grew its stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 71.0% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 33,038 shares of the industrial products company's stock after acquiring an additional 13,716 shares during the quarter. Prudential PLC's holdings in Illinois Tool Works were worth $8,137,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Meridian Wealth Management LLC grew its stake in shares of Illinois Tool Works by 1.3% in the fourth quarter. Meridian Wealth Management LLC now owns 2,818 shares of the industrial products company's stock valued at $694,000 after buying an additional 37 shares in the last quarter. Mayflower Financial Advisors LLC boosted its holdings in Illinois Tool Works by 3.8% in the fourth quarter. Mayflower Financial Advisors LLC now owns 1,065 shares of the industrial products company's stock valued at $262,000 after purchasing an additional 39 shares during the last quarter. Revisor Wealth Management LLC raised its position in shares of Illinois Tool Works by 1.4% in the 4th quarter. Revisor Wealth Management LLC now owns 2,841 shares of the industrial products company's stock valued at $734,000 after purchasing an additional 39 shares in the last quarter. Concord Asset Management LLC VA raised its position in shares of Illinois Tool Works by 1.1% in the 4th quarter. Concord Asset Management LLC VA now owns 3,591 shares of the industrial products company's stock valued at $884,000 after purchasing an additional 39 shares in the last quarter. Finally, Planning Alternatives Ltd. ADV raised its position in shares of Illinois Tool Works by 2.6% in the 4th quarter. Planning Alternatives Ltd. ADV now owns 1,558 shares of the industrial products company's stock valued at $384,000 after purchasing an additional 39 shares in the last quarter. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Illinois Tool Works news, Director Jennifer F. Scanlon bought 806 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director directly owned 1,652 shares in the company, valued at $409,679.48. The trade was a 95.27% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.83% of the stock is currently owned by corporate insiders.

Illinois Tool Works Trading Up 0.5%

Shares of NYSE ITW opened at $252.48 on Friday. The company has a market cap of $72.64 billion, a price-to-earnings ratio of 23.44, a price-to-earnings-growth ratio of 4.31 and a beta of 1.01. Illinois Tool Works Inc. has a 12-month low of $238.82 and a 12-month high of $303.15. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04. The stock's 50 day simple moving average is $258.67 and its 200 day simple moving average is $262.46.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, beating 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 firm had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $4.01 billion. During the same period last year, the firm earned $2.38 EPS. The firm's revenue 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. Equities research analysts expect that Illinois Tool Works Inc. will post 11.37 EPS for the current year.

Illinois Tool Works Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be given a $1.61 dividend. This represents a $6.44 annualized dividend and a yield of 2.6%. The ex-dividend date is Tuesday, June 30th. Illinois Tool Works's dividend payout ratio (DPR) is currently 59.80%.

Analysts Set New Price Targets

A number of analysts recently issued reports on ITW shares. Citigroup lifted their price target on shares of Illinois Tool Works from $284.00 to $287.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. Weiss Ratings lowered shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Wolfe Research lifted their price target on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a research note on Friday, February 27th. JPMorgan Chase & Co. dropped their price target on shares of 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 shares of Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $271.92.

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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