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Illinois Tool Works Inc. (NYSE:ITW), a $74.92 billion industrial machinery giant, saw its Senior Vice President and Chief Financial Officer Michael M. Larsen recently sell a substantial portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Larsen sold a total of 41,472 shares of common stock on March 7, 2025. The transactions were executed at prices ranging from $270.52 to $271.53 per share, amounting to a total sale value of approximately $11.25 million. The sale occurred near the stock’s 52-week high of $279.13, at a time when InvestingPro analysis indicates the stock is trading above its Fair Value.
Prior to these sales, Larsen exercised options to acquire 41,472 shares of common stock at a price of $144.21 per share, totaling around $5.98 million. Following these transactions, Larsen retains ownership of 50,502 shares in Illinois Tool Works.
These transactions provide a glimpse into the financial activities of Illinois Tool Works’ executive team, offering investors insight into the stock movements of the company’s leadership.
In other recent news, Illinois Tool Works reported fourth-quarter earnings of $2.54 per share, slightly surpassing analyst expectations by $0.04, although revenue fell short at $3.93 billion compared to the anticipated $3.99 billion. The company’s full-year 2025 earnings guidance projects an EPS range of $10.15 to $10.55, which is below the analyst consensus of $10.67. Truist Securities adjusted its outlook on Illinois Tool Works, reducing the price target to $302 from $318 while maintaining a Buy rating, following challenges in organic growth and specific market segments. Despite a record operating margin of 26.2% in the fourth quarter and a 10% increase in free cash flow, the company experienced a 0.5% decline in organic growth.
Illinois Tool Works has amended its Euro-denominated credit agreement, extending the termination date to February 28, 2027, with an option to extend further to September 15, 2027. The amendment also reduced the interest rate spread on loans from 0.75% to 0.70%. The company fully utilized the available €750 million under the Euro Credit Agreement. For 2025, Illinois Tool Works anticipates operating margins to improve, ranging from 26.5% to 27.5%. The company plans to repurchase approximately $1.5 billion of its own shares and projects an effective tax rate between 24% and 24.5%.
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