Davis Capital Management Makes New Investment in Illinois Tool Works Inc. $ITW

Davis Capital Management purchased a new stake in Illinois Tool Works Inc. (NYSE:ITW) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 4,457 shares of the industrial products company’s stock, valued at approximately $1,162,000.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Signaturefd LLC increased its stake in Illinois Tool Works by 0.9% in the third quarter. Signaturefd LLC now owns 6,847 shares of the industrial products company’s stock valued at $1,785,000 after purchasing an additional 62 shares in the last quarter. Townsend & Associates Inc bought a new stake in shares of Illinois Tool Works in the 3rd quarter valued at $331,000. PDS Planning Inc raised its stake in Illinois Tool Works by 4.4% during the 3rd quarter. PDS Planning Inc now owns 2,591 shares of the industrial products company’s stock worth $676,000 after buying an additional 110 shares during the period. NTV Asset Management LLC lifted its holdings in Illinois Tool Works by 7.6% during the third quarter. NTV Asset Management LLC now owns 1,992 shares of the industrial products company’s stock worth $519,000 after acquiring an additional 141 shares in the last quarter. Finally, C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors grew its stake in Illinois Tool Works by 3.5% in the third quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 1,473 shares of the industrial products company’s stock valued at $384,000 after acquiring an additional 50 shares during the period. Institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Stock Up 1.1%

Shares of ITW stock opened at $249.09 on Friday. The firm’s fifty day moving average price is $247.95 and its two-hundred day moving average price is $254.14. Illinois Tool Works Inc. has a 1 year low of $214.66 and a 1 year high of $278.13. The company has a current ratio of 1.53, a quick ratio of 1.11 and a debt-to-equity ratio of 2.39. The firm has a market capitalization of $72.26 billion, a P/E ratio of 24.16, a PEG ratio of 10.35 and a beta of 1.15.

Illinois Tool Works (NYSE:ITW) last released its earnings results on Friday, October 24th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.72 by $0.09. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The business had revenue of $4.06 billion for the quarter, compared to the consensus estimate of $4.09 billion. During the same quarter in the previous year, the business earned $3.91 earnings per share. Illinois Tool Works’s quarterly revenue was up 2.3% on a year-over-year basis. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS. On average, equities analysts predict that Illinois Tool Works Inc. will post 10.39 EPS for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st will be issued a $1.61 dividend. This represents a $6.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, December 31st. Illinois Tool Works’s dividend payout ratio is presently 62.46%.

Wall Street Analyst Weigh In

ITW has been the topic of several recent analyst reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Illinois Tool Works in a report on Friday, October 31st. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Illinois Tool Works from $265.00 to $268.00 and gave the company a “hold” rating in a research note on Thursday, October 2nd. The Goldman Sachs Group downgraded shares of Illinois Tool Works from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $258.00 to $230.00 in a research report on Tuesday, December 16th. Evercore ISI cut their price objective on shares of Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating on the stock in a research report on Monday, November 17th. Finally, Barclays increased their target price on Illinois Tool Works from $243.00 to $244.00 and gave the stock an “underweight” rating in a report on Monday, October 27th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $259.25.

Insider Buying and Selling at Illinois Tool Works

In related news, Director Pamela B. Strobel sold 1,521 shares of the firm’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $245.25, for a total value of $373,025.25. Following the completion of the transaction, the director directly owned 39,249 shares of the company’s stock, valued at approximately $9,625,817.25. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.88% of the company’s stock.

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.