Sapient Capital LLC Acquires 9,457 Shares of Illinois Tool Works Inc. $ITW

Key Points

• Sapient Capital increased its Illinois Tool Works stake by 227.7% in the second quarter, buying 9,457 additional shares for a total holding of 13,611 shares valued at approximately $3.7 million.
• Analysts remain cautious on ITW, with a consensus “Reduce” rating, seven Holds, five Sells and one Buy; the average price target is $281.25.
• Illinois Tool Works exceeded quarterly earnings and revenue expectations, while raising its quarterly dividend to $1.72 per share, equivalent to a 2.3% annual yield.

Sapient Capital LLC raised its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 227.7% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 13,611 shares of the industrial products company's stock after purchasing an additional 9,457 shares during the period. Sapient Capital LLC's holdings in Illinois Tool Works were worth $3,703,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in Illinois Tool Works by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 26,887,218 shares of the industrial products company's stock worth $6,622,322,000 after acquiring an additional 189,229 shares during the last quarter. State Street Corp raised its stake in shares of Illinois Tool Works by 1.2% in the fourth quarter. State Street Corp now owns 12,596,511 shares of the industrial products company's stock worth $3,122,535,000 after purchasing an additional 151,864 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Illinois Tool Works by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 6,944,651 shares of the industrial products company's stock worth $1,709,734,000 after purchasing an additional 184,301 shares during the last quarter. Capital Research Global Investors lifted its holdings in shares of Illinois Tool Works by 3.2% during the fourth quarter. Capital Research Global Investors now owns 4,636,392 shares of the industrial products company's stock valued at $1,141,948,000 after purchasing an additional 142,837 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its position in shares of Illinois Tool Works by 1.5% during the fourth quarter. Fisher Asset Management LLC now owns 3,705,081 shares of the industrial products company's stock valued at $912,562,000 after buying an additional 54,519 shares during the last quarter. 79.77% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ITW has been the subject of several research analyst reports. Citigroup reiterated a "neutral" rating on shares of Illinois Tool Works in a report on Monday, July 13th. UBS Group reaffirmed a "neutral" rating and set a $300.00 price target on shares of Illinois Tool Works in a report on Wednesday, July 29th. Robert W. Baird lifted their price target on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Weiss Ratings cut shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Finally, The Goldman Sachs Group restated a "sell" rating and set a $254.00 price objective on shares of Illinois Tool Works in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $281.25.

Illinois Tool Works Stock Down 0.8%

ITW opened at $294.34 on Tuesday. The company has a market capitalization of $84.68 billion, a PE ratio of 26.69, a price-to-earnings-growth ratio of 5.01 and a beta of 0.99. The firm has a 50-day simple moving average of $271.73 and a two-hundred day simple moving average of $269.82. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. 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 announced its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a net margin of 19.39% and a return on equity of 101.72%. The business had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.19 billion. During the same quarter last year, the firm earned $2.58 earnings per share. The firm's quarterly revenue was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Analysts forecast that Illinois Tool Works Inc. will post 11.46 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 30th will be paid a dividend of $1.72 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.3%. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's dividend payout ratio is 58.39%.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon acquired 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, for a total transaction of $199,879.94. Following the acquisition, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.83% of the stock is currently owned by insiders.

Illinois Tool Works Company 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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