Timken (NYSE:TKR) Stock Gets Price Target Reduction from Citigroup

Key Points

• Citigroup cut Timken’s price target from $160 to $140 while maintaining a “buy” rating, implying 21.61% upside from the prior close.
• Analyst sentiment remains favorable: seven analysts rate the stock a Buy and three rate it Hold, producing a “Moderate Buy” consensus and an average target of $145.
• Timken shares fell 0.9% to $115.12, despite the company exceeding quarterly earnings and revenue expectations and reporting 7.5% year-over-year revenue growth.

Timken (NYSE:TKR - Get Free Report) had its target price decreased by stock analysts at Citigroup from $160.00 to $140.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the industrial products company's stock. Citigroup's price objective would indicate a potential upside of 21.61% from the company's previous close.

TKR has been the topic of several other research reports. JPMorgan Chase & Co. increased their price objective on Timken from $150.00 to $160.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Jefferies Financial Group set a $135.00 price objective on Timken in a report on Tuesday, September 1st. KeyCorp lifted their target price on Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. The Goldman Sachs Group lifted their target price on Timken from $128.00 to $142.00 and gave the company a "neutral" rating in a research report on Friday, July 10th. Finally, Weiss Ratings upgraded Timken from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 20th. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $145.00.

Timken Trading Down 0.9%

Timken stock traded down $1.00 during trading hours on Monday, hitting $115.12. The company had a trading volume of 674,623 shares, compared to its average volume of 909,574. The firm has a market cap of $7.98 billion, a P/E ratio of 31.20, a P/E/G ratio of 1.29 and a beta of 1.18. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.74 and a current ratio of 3.10. Timken has a 1 year low of $71.39 and a 1 year high of $146.37. The company has a 50-day moving average price of $122.42 and a two-hundred day moving average price of $123.30.

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

Insider Activity

In related news, Director Richard Kyle sold 13,637 shares of Timken stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $126.63, for a total transaction of $1,726,853.31. Following the transaction, the director directly owned 183,724 shares of the company's stock, valued at $23,264,970.12. This trade represents a 6.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 8.10% of the company's stock.

Hedge Funds Weigh In On Timken

A number of large investors have recently bought and sold shares of the business. Allworth Financial LP purchased a new stake in Timken during the 2nd quarter worth approximately $37,000. Elevation Wealth Partners LLC increased its stake in Timken by 420.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 260 shares of the industrial products company's stock valued at $38,000 after purchasing an additional 210 shares in the last quarter. Trust Co. of Vermont acquired a new position in Timken during the 2nd quarter valued at approximately $41,000. Fairway Wealth LLC purchased a new position in shares of Timken in the first quarter worth $67,000. Finally, Global Retirement Partners LLC purchased a new position in shares of Timken in the second quarter worth $82,000. Institutional investors own 89.08% of the company's stock.

About Timken

Timken NYSE: TKR is an engineered bearings and industrial motion products company. Its offerings include tapered, spherical, cylindrical, needle and precision bearings, as well as seals and lubrication systems designed to reduce friction, manage loads and support the performance of mechanical equipment.

Through its Industrial Motion business, Timken also provides products such as mechanical power transmission components, chains, belts, couplings, linear motion systems and gear drives.

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