Rakuten Investment Management Inc. Increases Position in Illinois Tool Works Inc. $ITW

Key Points

• Rakuten Investment Management increased its Illinois Tool Works stake by 9.9% in the second quarter, bringing its holdings to 43,511 shares valued at approximately $11.6 million. Institutional investors and hedge funds collectively own 79.77% of ITW.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and an average price target of $281.25, despite JPMorgan raising its target to $350 and assigning an overweight rating.
• Illinois Tool Works exceeded quarterly expectations with $2.84 in earnings per share and $4.30 billion in revenue, while raising its quarterly dividend from $1.61 to $1.72 per share, equivalent to a 2.5% annual yield.

Rakuten Investment Management Inc. increased its holdings in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 9.9% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 43,511 shares of the industrial products company's stock after purchasing an additional 3,923 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Illinois Tool Works were worth $11,638,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. B. Metzler seel. Sohn & Co. AG purchased a new stake in shares of Illinois Tool Works in the second quarter worth approximately $5,017,000. Sanctuary Advisors LLC bought a new position in Illinois Tool Works during the 2nd quarter valued at $14,028,000. Strs Ohio boosted its holdings in Illinois Tool Works by 20.5% during the 4th quarter. Strs Ohio now owns 83,263 shares of the industrial products company's stock worth $20,508,000 after acquiring an additional 14,186 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Illinois Tool Works by 3.8% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 586,906 shares of the industrial products company's stock worth $146,433,000 after acquiring an additional 21,481 shares in the last quarter. Finally, Pacific Heights Asset Management LLC raised its holdings in shares of Illinois Tool Works by 15.0% in the fourth quarter. Pacific Heights Asset Management LLC now owns 115,000 shares of the industrial products company's stock valued at $28,324,000 after purchasing an additional 15,000 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ITW. Wolfe Research restated an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a report on Thursday, July 9th. Citigroup reaffirmed a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. Weiss Ratings raised Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Wells Fargo & Company raised their target price on Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Finally, JPMorgan Chase & Co. raised their price target on shares of Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $281.25.

Insiders Place Their Bets

In other Illinois Tool Works news, CAO Matteo C. Pigozzo sold 277 shares of the company's stock in a transaction dated 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 sale, the chief accounting officer directly owned 3,394 shares in the company, valued at $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jennifer F. Scanlon acquired 806 shares of Illinois Tool Works stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the purchase, the director directly owned 1,652 shares of the company's stock, valued at approximately $409,679.48. The trade was a 95.27% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.83% of the stock is currently owned by insiders.

Illinois Tool Works Stock Performance

Shares of NYSE ITW opened at $280.19 on Friday. The stock's 50-day moving average is $279.88 and its 200 day moving average is $271.50. The stock has a market cap of $79.80 billion, a price-to-earnings ratio of 25.40, a P/E/G ratio of 4.76 and a beta of 0.99. Illinois Tool Works Inc. has a 1-year low of $238.82 and a 1-year high of $303.15. The company has a current ratio of 1.11, a quick ratio of 0.81 and a debt-to-equity ratio of 2.26.

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

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Investors 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 yield of 2.5%. The ex-dividend date is Wednesday, September 30th. This is a boost from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's dividend payout ratio is 58.39%.

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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