State Street Corp Buys 128,089 Shares of Illinois Tool Works Inc. $ITW

Key Points

• State Street increased its Illinois Tool Works stake by 128,089 shares in the second quarter, bringing its holdings to 12.79 million shares, or approximately 4.49% of ITW. Institutional investors collectively own 79.77% of the company.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $281.25. Ratings range from JPMorgan’s “overweight” with a $350 target to Wolfe Research’s “underperform” rating.
• ITW exceeded quarterly earnings and revenue expectations, reporting $2.84 EPS on $4.30 billion in revenue, while raising its quarterly dividend from $1.61 to $1.72 per share.

State Street Corp increased its stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) by 1.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 12,788,570 shares of the industrial products company's stock after buying an additional 128,089 shares during the quarter. State Street Corp owned about 4.49% of Illinois Tool Works worth $3,479,219,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in Illinois Tool Works in the 2nd quarter worth about $6,296,349,000. Norges Bank purchased a new position in shares of Illinois Tool Works during the fourth quarter valued at approximately $808,351,000. Bank of New York Mellon Corp bought a new position in shares of Illinois Tool Works during the second quarter valued at approximately $603,166,000. Legal & General Group Plc purchased a new stake in shares of Illinois Tool Works in the second quarter worth approximately $500,748,000. Finally, Deutsche Bank AG purchased a new stake in shares of Illinois Tool Works in the second quarter worth approximately $221,746,000. 79.77% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have commented on ITW. Wolfe Research reaffirmed an "underperform" rating and issued a $286.00 price objective on shares of Illinois Tool Works in a research report on Thursday, July 9th. JPMorgan Chase & Co. lifted their target price on Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Weiss Ratings upgraded shares of Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. UBS Group reaffirmed a "neutral" rating and issued a $300.00 price target on shares of Illinois Tool Works in a research note on Wednesday, July 29th. Finally, Robert W. Baird raised their target price on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $281.25.

Insider Buying and Selling

In other news, CAO Matteo C. Pigozzo sold 277 shares of the stock in a transaction on Thursday, August 13th. The stock was 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 owned 3,394 shares in the company, valued at approximately $981,612.68. This represents a 7.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ernest Santi sold 41,431 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, the director directly owned 266,288 shares of the company's stock, valued at $76,448,621.92. The trade was a 13.46% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.83% of the company's stock.

Illinois Tool Works Trading Up 1.1%

NYSE ITW opened at $270.38 on Wednesday. The company's 50-day simple moving average is $279.89 and its two-hundred day simple moving average is $268.41. Illinois Tool Works Inc. has a one year low of $238.82 and a one year high of $303.15. The company has a market capitalization of $77.00 billion, a price-to-earnings ratio of 24.51, a price-to-earnings-growth ratio of 2.86 and a beta of 0.98. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 EPS for the quarter, topping analysts' consensus estimates 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 company had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.19 billion. During the same quarter in the previous year, the firm posted $2.58 earnings per share. Illinois Tool Works's revenue for the quarter 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. Equities analysts forecast that Illinois Tool Works Inc. will post 11.43 EPS for the current fiscal year.

Illinois Tool Works Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be issued a $1.72 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.5%. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's dividend payout ratio (DPR) is 58.39%.

Illinois Tool Works Profile

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and related solutions for businesses worldwide. Its products are used across industries including automotive, food service, construction, electronics, welding and general manufacturing.

The company operates through several business segments, including Automotive, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products.

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