Illinois Tool Works Inc. $ITW Stock: Retirement Systems of Alabama Lowers Holdings

Retirement Systems of Alabama lessened its holdings in shares of Illinois Tool Works Inc. (NYSE:ITW) by 69.8% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 54,349 shares of the industrial products company’s stock after selling 125,578 shares during the period. Retirement Systems of Alabama’s holdings in Illinois Tool Works were worth $13,983,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of Illinois Tool Works during the second quarter worth about $6,296,349,000. Bank of New York Mellon Corp purchased a new position in Illinois Tool Works in the 2nd quarter worth $603,166,000. Legal & General Group Plc purchased a new position in Illinois Tool Works in the 2nd quarter worth $500,748,000. Deutsche Bank AG purchased a new stake in Illinois Tool Works during the 2nd quarter valued at about $221,746,000. Finally, Hsbc Holdings PLC purchased a new stake in Illinois Tool Works during the 2nd quarter valued at about $209,959,000. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ITW shares. JPMorgan Chase & Co. lowered shares of Illinois Tool Works from an “overweight” rating to a “neutral” rating and reduced their price target for the stock from $350.00 to $270.00 in a research report on Friday, October 9th. Deutsche Bank cut their price target on Illinois Tool Works from $287.00 to $281.00 and set a “hold” rating on the stock in a research report on Wednesday, September 30th. Truist Financial restated a “hold” rating and issued a $293.00 target price (down from $297.00) on shares of Illinois Tool Works in a research note on Wednesday, October 28th. UBS Group set a $277.00 price objective on Illinois Tool Works in a research report on Friday, October 9th. Finally, Robert W. Baird boosted their target price on shares of Illinois Tool Works from $278.00 to $297.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $276.33.

Insider Activity

In related news, Director Ernest Santi sold 60,000 shares of the company’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $292.87, for a total value of $17,572,200.00. Following the completion of the sale, the director owned 266,333 shares of the company’s stock, valued at approximately $78,000,945.71. This represents a 18.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.83% of the company’s stock.

Illinois Tool Works Trading Down 0.7%

Shares of Illinois Tool Works stock opened at $286.77 on Friday. The firm has a market capitalization of $81.50 billion, a PE ratio of 25.56, a P/E/G ratio of 3.17 and a beta of 0.92. Illinois Tool Works Inc. has a twelve month low of $238.82 and a twelve month high of $303.15. The firm’s 50-day moving average price is $272.95 and its 200 day moving average price is $271.97. The company has a current ratio of 1.29, a quick ratio of 0.94 and a debt-to-equity ratio of 2.28.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $3.00 EPS for the quarter, topping the consensus estimate of $2.97 by $0.03. The firm had revenue of $4.24 billion during the quarter, compared to analysts’ expectations of $4.26 billion. Illinois Tool Works had a return on equity of 103.35% and a net margin of 19.39%. The firm’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the previous year, the business earned $2.81 earnings per share. On average, sell-side analysts predict that Illinois Tool Works Inc. will post 11.49 EPS for the current fiscal year.

Illinois Tool Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be paid a $1.72 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works’s dividend payout ratio (DPR) is 61.32%.

Illinois Tool Works News Summary

Investors following ITW have been watching these news items:

• Positive Sentiment: ITW raised its 2026 outlook following a third-quarter margin gain, a potentially supportive sign for earnings expectations. Illinois Tool Works stock lifts 2026 outlook after Q3 margin gain
• Positive Sentiment: Zacks Research modestly increased its estimates for Q4 2026 EPS to $2.96 from $2.93, FY2026 EPS to $11.46 from $11.39, and Q2 2027 EPS to $3.04 from $3.03. These revisions suggest slightly improved near-term expectations.
• Negative Sentiment: Zacks Research trimmed estimates across several later periods, including FY2027 EPS to $12.21 from $12.33 and FY2028 EPS to $13.08 from $13.20, alongside cuts to multiple 2027–2028 quarterly forecasts. The reductions could temper the positive impact of the higher 2026 outlook.

Illinois Tool Works Company Profile

Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions. ITW’s businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.