Timken (NYSE:TKR) Raised to "Buy" at Bank of America

Key Points

• Bank of America upgraded Timken to “Buy” from “Neutral” and set a $135 price target, implying approximately 12.1% upside from the previous close.
• Analyst sentiment is broadly positive: Timken has a consensus “Moderate Buy” rating from seven Buy and three Hold ratings, with an average price target of $145.50.
• Timken exceeded quarterly expectations, reporting $1.83 in EPS versus the $1.62 consensus and $1.26 billion in revenue, up 7.5% year over year; however, two directors recently sold shares.

Timken (NYSE:TKR - Get Free Report) was upgraded by stock analysts at Bank of America from a "neutral" rating to a "buy" rating in a note issued to investors on Tuesday, Briefing.com reports. The firm presently has a $135.00 target price on the industrial products company's stock. Bank of America's price objective points to a potential upside of 12.10% from the company's previous close.

Several other analysts have also issued reports on TKR. Oppenheimer upped their price target on shares of Timken from $147.00 to $150.00 and gave the company an "outperform" rating in a research report on Tuesday, July 21st. Morgan Stanley set a $140.00 price objective on shares of Timken in a report on Thursday, May 21st. JPMorgan Chase & Co. raised their target price on Timken from $150.00 to $160.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. KeyCorp boosted their price objective on shares of Timken from $140.00 to $160.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Finally, Citigroup lifted their price target on Timken from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $145.50.

Timken Trading Down 0.3%

Shares of TKR stock opened at $120.43 on Tuesday. The company has a quick ratio of 1.74, a current ratio of 3.10 and a debt-to-equity ratio of 0.61. The firm has a market cap of $8.35 billion, a P/E ratio of 32.64, a PEG ratio of 1.42 and a beta of 1.21. The company has a 50 day moving average of $134.60 and a 200-day moving average of $120.39. Timken has a 12-month low of $70.57 and a 12-month high of $146.37.

Timken (NYSE:TKR - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.21. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.23 billion. Timken had a net margin of 5.43% and a return on equity of 12.63%. The company's quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.12 earnings per share. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. Sell-side analysts anticipate that Timken will post 6.25 earnings per share for the current year.

Insider Activity

In other news, Director Richard G. Kyle sold 13,637 shares of Timken stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $126.63, for a total value of $1,726,853.31. Following the completion of the transaction, the director owned 183,724 shares in the company, valued at approximately $23,264,970.12. The trade was a 6.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ajita G. Rajendra sold 8,450 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $131.34, for a total value of $1,109,823.00. Following the transaction, the director directly owned 20,225 shares in the company, valued at approximately $2,656,351.50. This represents a 29.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 8.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Timken

Hedge funds have recently added to or reduced their stakes in the company. Gordian Capital Singapore Pte Ltd bought a new stake in Timken during the 4th quarter valued at $25,000. Clearstead Advisors LLC increased its holdings in shares of Timken by 130.3% in the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 172 shares during the period. Allworth Financial LP bought a new position in shares of Timken in the 2nd quarter worth $37,000. Elevation Wealth Partners LLC lifted its stake in shares of Timken by 420.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 260 shares of the industrial products company's stock worth $38,000 after purchasing an additional 210 shares during the last quarter. Finally, Trust Co. of Vermont bought a new stake in Timken during the second quarter valued at about $41,000. 89.08% of the stock is currently owned by institutional investors.

Timken Company Profile

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken's products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken's portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.

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