The Manufacturers Life Insurance Company Makes New Investment in Illinois Tool Works Inc. $ITW

Key Points

• The Manufacturers Life Insurance Company acquired 135,215 shares of Illinois Tool Works valued at approximately $36.6 million in the second quarter. Institutional investors now own 79.77% of ITW’s outstanding stock.
• ITW reported quarterly earnings of $2.84 per share, beating estimates by $0.04, while revenue rose 6.1% year over year to $4.30 billion. The company also raised its quarterly dividend to $1.72, representing a 2.4% annualized yield.
• Analyst sentiment remains cautious, with ITW carrying a consensus “Reduce” rating and an average price target of $281.25, below its reported opening price of $285.54.

The Manufacturers Life Insurance Company bought a new stake in Illinois Tool Works Inc. (NYSE:ITW - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 135,215 shares of the industrial products company's stock, valued at approximately $36,572,000.

A number of other large investors have also bought and sold shares of ITW. BlackRock Inc. acquired a new stake in Illinois Tool Works in the 2nd quarter valued at about $6,296,349,000. Norges Bank bought a new stake in shares of Illinois Tool Works during the fourth quarter valued at approximately $808,351,000. Bank of New York Mellon Corp acquired a new stake in shares of Illinois Tool Works in the second quarter valued at approximately $603,166,000. Deutsche Bank AG bought a new position in Illinois Tool Works in the 2nd quarter worth approximately $221,746,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Illinois Tool Works during the 2nd quarter worth $180,734,000. 79.77% of the stock is currently owned by institutional investors.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $285.54 on Thursday. The firm has a market capitalization of $81.32 billion, a P/E ratio of 25.89, a PEG 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 business has a 50-day moving average of $279.22 and a 200-day moving average of $271.52. 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 announced its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating 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 business had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.19 billion. During the same period last year, the company posted $2.58 EPS. 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. On average, equities analysts anticipate that Illinois Tool Works Inc. will post 11.45 EPS for the current 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. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 annualized dividend and a dividend yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is presently 58.39%.

Insider Activity at Illinois Tool Works

In related news, CAO Matteo C. Pigozzo sold 277 shares of the firm's 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 sale, the chief accounting officer owned 3,394 shares of the company's stock, valued at approximately $981,612.68. This trade represents a 7.55% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Ernest Scott Santi sold 41,431 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the transaction, the director directly owned 266,288 shares of the company's stock, valued at approximately $76,448,621.92. The trade was a 13.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.83% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have commented on ITW. Citigroup reiterated a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. JPMorgan Chase & Co. raised their price target on Illinois Tool Works from $310.00 to $350.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Truist Financial lifted their price objective on Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. The Goldman Sachs Group restated a "sell" rating and set a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. Finally, 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 report 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 given a Sell rating to the stock. Based on data from MarketBeat, Illinois Tool Works currently has an average rating of "Reduce" and a consensus price target of $281.25.

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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