Ramsay Stattman Vela & Price Inc. Decreases Stock Holdings in Illinois Tool Works Inc. $ITW

Key Points

• Ramsay Stattman Vela & Price Inc. cut its Illinois Tool Works stake by 9.4% in the first quarter, selling 4,679 shares and ending with 44,994 shares valued at about $11.7 million.
• Illinois Tool Works reported solid quarterly results, with earnings of $2.66 per share beating estimates and revenue of $4.02 billion slightly ahead of expectations; revenue rose 4.6% year over year.
• The company continues to return cash to shareholders with a quarterly dividend of $1.61 per share, or $6.44 annually, for a yield of about 2.4%, while analysts currently hold a consensus rating of “Reduce.”

Ramsay Stattman Vela & Price Inc. lowered its stake in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 9.4% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 44,994 shares of the industrial products company's stock after selling 4,679 shares during the period. Illinois Tool Works makes up approximately 2.3% of Ramsay Stattman Vela & Price Inc.'s holdings, making the stock its 13th biggest position. Ramsay Stattman Vela & Price Inc.'s holdings in Illinois Tool Works were worth $11,711,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in ITW. Cresta Advisors Ltd. purchased a new stake in Illinois Tool Works during the 4th quarter valued at $25,000. Motiv8 Investments LLC bought a new position in shares of Illinois Tool Works during the 4th quarter valued at $27,000. Kemnay Advisory Services Inc. purchased a new position in shares of Illinois Tool Works in the 4th quarter worth $27,000. Lodestone Wealth Management LLC purchased a new stake in Illinois Tool Works during the fourth quarter valued at $28,000. Finally, Beacon Financial Strategies CORP bought a new position in Illinois Tool Works in the fourth quarter valued at about $29,000. Hedge funds and other institutional investors own 79.77% of the company's stock.

Insiders Place Their Bets

In other news, Director Jennifer F. Scanlon purchased 806 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was acquired at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the transaction, the director directly owned 1,652 shares in the company, valued at $409,679.48. This trade represents a 95.27% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.83% of the stock is owned by corporate insiders.

Illinois Tool Works Stock Performance

NYSE:ITW opened at $265.26 on Friday. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.86 and a current ratio of 1.19. The stock has a 50-day simple moving average of $257.98 and a two-hundred day simple moving average of $265.20. The firm has a market capitalization of $76.31 billion, a PE ratio of 24.63, a P/E/G ratio of 4.56 and a beta of 1.00. Illinois Tool Works Inc. has a 52-week low of $238.82 and a 52-week high of $303.15.

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

Illinois Tool Works Announces Dividend

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

Wall Street Analysts Forecast Growth

ITW has been the topic of several research reports. The Goldman Sachs Group reissued a "sell" rating and issued a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. JPMorgan Chase & Co. reduced 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 report on Friday, May 1st. Citigroup raised their price objective on shares of Illinois Tool Works from $284.00 to $287.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. Wolfe Research restated an "underperform" rating and set a $286.00 target price on shares of Illinois Tool Works in a research report on Thursday. Finally, Evercore reduced their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $272.85.

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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