Sterling Investment Advisors Ltd. Invests $3.33 Million in Illinois Tool Works Inc. $ITW

Key Points

• Sterling Investment Advisors purchased 12,312 Illinois Tool Works shares worth approximately $3.33 million during the second quarter. Institutional investors collectively own 79.77% of the company.
• Illinois Tool Works exceeded quarterly expectations, reporting $2.84 in earnings per share versus the $2.80 consensus and $4.30 billion in revenue, up 6.1% year over year. The company guided to fiscal 2026 EPS of $11.35–$11.55.
• The company raised its quarterly dividend to $1.72, equivalent to an annualized $6.88 and a 2.6% yield. Analysts maintain a consensus “Reduce” rating with an average price target of $281.25.

Sterling Investment Advisors Ltd. bought a new position in shares of Illinois Tool Works Inc. (NYSE:ITW - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 12,312 shares of the industrial products company's stock, valued at approximately $3,330,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. California State Teachers Retirement System increased its position in Illinois Tool Works by 23,625.6% in the 2nd quarter. California State Teachers Retirement System now owns 109,530,343 shares of the industrial products company's stock valued at $29,624,672,000 after buying an additional 109,068,689 shares in the last quarter. BlackRock Inc. purchased a new stake in Illinois Tool Works in the 2nd quarter valued at $6,296,349,000. State Street Corp lifted its position in shares of Illinois Tool Works by 1.2% during the fourth quarter. State Street Corp now owns 12,596,511 shares of the industrial products company's stock valued at $3,122,535,000 after purchasing an additional 151,864 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Illinois Tool Works by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 6,944,651 shares of the industrial products company's stock worth $1,709,734,000 after buying an additional 184,301 shares during the last quarter. Finally, Capital Research Global Investors boosted its position in Illinois Tool Works by 3.2% in the fourth quarter. Capital Research Global Investors now owns 4,636,392 shares of the industrial products company's stock worth $1,141,948,000 after purchasing an additional 142,837 shares during the last quarter. 79.77% of the stock is currently owned by institutional investors.

Illinois Tool Works Price Performance

ITW opened at $268.76 on Wednesday. The company has a debt-to-equity ratio of 2.26, a current ratio of 1.11 and a quick ratio of 0.81. Illinois Tool Works Inc. has a 1 year low of $238.82 and a 1 year high of $303.15. The stock's 50 day simple moving average is $280.40 and its 200 day simple moving average is $270.04. The firm has a market cap of $76.54 billion, a price-to-earnings ratio of 24.37, a PEG ratio of 3.66 and a beta of 0.98.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share 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 analyst estimates of $4.19 billion. During the same period in the prior year, the business posted $2.58 earnings per share. Illinois Tool Works's revenue for the quarter was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. As a group, analysts predict that Illinois Tool Works Inc. will post 11.45 earnings per share for the current year.

Illinois Tool Works Increases Dividend

The business 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 $1.72 dividend. This represents a $6.88 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Wednesday, September 30th. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's dividend payout ratio (DPR) is currently 62.38%.

Insider Buying and Selling at Illinois Tool Works

In other Illinois Tool Works news, Director Ernest Santi sold 41,431 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total transaction of $11,894,425.79. Following the completion of the sale, the director directly owned 266,288 shares in the company, valued at approximately $76,448,621.92. This trade represents a 13.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matteo Pigozzo sold 277 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ITW. Wolfe Research reissued an "underperform" rating and issued a $286.00 target price on shares of Illinois Tool Works in a research report on Thursday, July 9th. Robert W. Baird increased 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. JPMorgan Chase & Co. lifted their target price 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. Truist Financial lifted their price target on Illinois Tool Works from $280.00 to $301.00 and gave the company a "hold" rating in a research report on Thursday, July 2nd. Finally, UBS Group reaffirmed a "neutral" rating and set a $300.00 target price on shares of Illinois Tool Works in a report on Wednesday, July 29th. Two 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 company's stock. Based on data from MarketBeat.com, Illinois Tool Works currently has an average rating of "Reduce" and a consensus price target of $281.25.

About Illinois Tool Works

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.

Want to see what other hedge funds are holding ITW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Illinois Tool Works Inc. (NYSE:ITW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.