Illinois Tool Works (NYSE: ITW) is one of America’s oldest and most respected industrial companies. Founded in 1912 by Byron L. Smith, the company has grown into a diversified global manufacturer across automotive, welding, polymers, food equipment, construction, and specialty products. Shares recently traded around $250, giving ITW a market capitalization of about $72.4 billion.
ITW stands out for exceptional profitability, operating with 43.9% gross margins, 26.4% EBIT margins, and consistently high returns on capital. Its disciplined portfolio strategy and strong free cash flow have helped the company behave more like a stable long term compounder than a cyclical manufacturer.
Studying who owns ITW and how insiders are trading provides a clearer view of how informed investors are positioning around the company’s long term outlook.
Who Are ITW’s Top Shareholders?
ITW’s shareholder base is led by passive indexing giants, long term insurance capital, and the Smith family’s long-standing holdings. These investors create a stable ownership structure, while active managers made smaller trims and additions that offer more nuanced signals.
ITW’s Largest Shareholders
- The Vanguard Group: 26,568,975 shares (9.16%), ~$6.63B value. Trimmed 28,698 shares (0.11%).
- Briar Hall Management (Smith family): 25,838,730 shares (8.91%), ~$6.45B value. No reported change.
- State Farm Insurance Companies: 21,812,600 shares (7.52%), ~$5.45B value. No reported change.
- BlackRock Institutional Trust: 14,013,027 shares (4.83%), ~$3.49B value. Reduced 128,520 shares (0.91%).
- State Street Investment Management: 12,444,647 shares (4.29%), ~$3.11B value. Trimmed 31,663 shares (0.25%).
- Northern Trust Global Investments: 8,245,605 shares (2.84%), ~$2.06B value. Reduced 4,115 shares (0.05%).
- Geode Capital Management: 6,760,350 shares (2.33%), ~$1.69B value. Trimmed 5,190 shares (0.08%).
- Wells Fargo Advisors: 6,544,240 shares (2.26%), ~$1.63B value. Cut 117,750 shares (1.77%).
- Capital Research Global Investors: 4,493,555 shares (1.55%), ~$1.12B value. Added 131,702 shares (3.02%).
- MFS Investment Management: 3,702,960 shares (1.28%), ~$924.6M value. Reduced 66,957 shares (1.78%).
- Fisher Investments: 3,650,562 shares (1.26%), ~$911.5M value. Added 55,416 shares (1.54%).
- Norges Bank (NBIM): 3,324,117 shares (1.15%), ~$830M value. Added 144,234 shares (4.54%).
For investors, the combination of stable passive ownership and selective additions from active managers supports the view that ITW continues to be treated as a high quality compounder. The modest trims from Vanguard, BlackRock, and State Street appear portfolio driven rather than conviction based, while buying from Capital Research, Fisher, and Norges Bank shows growing interest at current prices.
Hedge fund highlights
One highlight from last quarter is Squarepoint Capital’s increased interest in Illinois Tool Works. The firm expanded its position meaningfully, now holding a multi-million dollar stake. This suggests Squarepoint’s models may be picking up improving risk reward conditions as ITW trades toward the lower end of its recent valuation range.
Another notable development comes from Mario Gabelli’s GAMCO, which continued adding to its ITW holdings. Gabelli has long favored durable, high return industrial businesses, so this addition may reflect confidence in the consistency of ITW’s margins and the legacy business quality built from the foundation established by founder Byron L. Smith.
A third highlight is activity linked to Robert-associated investment entities, which also appear to have added incremental exposure. While these positions are smaller, these investors tend to focus on steady cash generators, so their interest aligns closely with ITW’s financial profile.
For investors, the tone of hedge fund activity suggests that several sophisticated managers may see ITW’s recent stock performance as creating an attractive setup for long term ownership.
Track the top shareholders of over 50,000 global stocks (It’s free) >>>
ITW’s Recent Insider Trades
Recent insider filings for Illinois Tool Works appear relatively small and mixed. While none of the activity signals strong bullish or bearish conviction, the trades offer insight into how leadership is managing their exposure.
Recent Insider Activity
- Randall J. Scheuneman (Officer/Director): Multiple filings showing 6,802 shares sold or disposed on 9/10/25 at prices between $128 and $265.08. These may relate to compensation timing or administrative adjustments.
- Ernest Scott Santi (Director):
• Disposed 3,790 shares on 8/20/25
• Reported 139 shares at $252.31 - David Byron Smith Jr. (Director):
• Traded between 153 and 872 shares at $241 to $252
• One entry showing (872) shares at $0, likely administrative - Darrell L. Ford (Director): 139 shares at $252.31
- Jennifer Kaplan Schott (Former): Multiple Form 144 submissions listed as 0 shares
For investors, these trades appear neutral. Most transactions seem too small to indicate a strong viewpoint, and several entries look connected to vesting, award settlements, or administrative reporting, though that cannot be confirmed. Overall, insider behavior reflects stability rather than directional conviction.
See recent insider trade data for over 50,000 global stocks (It’s free) >>>
What the Ownership & Insider Trade Data Tell Us
Illinois Tool Works remains largely owned by long duration institutions that prioritize consistent margins, disciplined capital allocation, and predictable cash flow. Active investors show a balanced mix of trimming and adding, while hedge fund interest has tilted more positive.
For investors, the takeaway is clear. ITW continues to be viewed as a reliable industrial compounder. The stable institutional base, selective hedge fund buying, and neutral insider actions point to steady long term expectations with potential upside if growth trends improve.
Value Any Stock in Under 60 Seconds (It’s Free)
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
