Bank of New York Mellon Corp Trims Stock Position in Timken Company (The) $TKR

Key Points

• Bank of New York Mellon reduced its Timken stake by 7.9% in the first quarter, selling 88,242 shares and leaving it with about 1.03 million shares valued at roughly $104 million.
• Timken reported better-than-expected quarterly results, with EPS of $1.67 versus $1.50 expected and revenue of $1.23 billion versus $1.17 billion expected, while also raising its annual guidance and its quarterly dividend to $0.36 per share.
• Despite the strong earnings, insiders sold shares over the past 90 days and analysts remain cautiously bullish overall, with a consensus rating of “Moderate Buy” and an average price target of $149.62.

Bank of New York Mellon Corp trimmed its holdings in shares of Timken Company (The) (NYSE:TKR - Free Report) by 7.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,034,111 shares of the industrial products company's stock after selling 88,242 shares during the period. Bank of New York Mellon Corp owned about 1.48% of Timken worth $104,001,000 as of its most recent SEC filing.

Other hedge funds also recently bought and sold shares of the company. Illinois Municipal Retirement Fund acquired a new position in shares of Timken in the first quarter worth $1,078,000. Checchi Capital Advisers LLC acquired a new stake in shares of Timken during the first quarter valued at $235,000. Calamos Advisors LLC acquired a new stake in shares of Timken during the first quarter valued at $299,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management purchased a new position in Timken in the 1st quarter valued at about $252,000. Finally, State of Michigan Retirement System boosted its stake in shares of Timken by 1.3% during the 1st quarter. State of Michigan Retirement System now owns 15,223 shares of the industrial products company's stock worth $1,531,000 after purchasing an additional 200 shares during the last quarter. Hedge funds and other institutional investors own 89.08% of the company's stock.

Timken Trading Down 2.5%

Shares of TKR opened at $134.32 on Tuesday. Timken Company has a twelve month low of $70.57 and a twelve month high of $146.37. The firm has a market capitalization of $9.34 billion, a P/E ratio of 30.53, a price-to-earnings-growth ratio of 1.64 and a beta of 1.20. The company has a current ratio of 2.88, a quick ratio of 1.55 and a debt-to-equity ratio of 0.60. The stock's fifty day simple moving average is $132.83 and its 200 day simple moving average is $112.49.

Timken (NYSE:TKR - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.50 by $0.17. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.17 billion. Timken had a return on equity of 11.84% and a net margin of 6.60%.The firm's quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.40 earnings per share. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, equities research analysts forecast that Timken Company will post 6.16 earnings per share for the current year.

Timken Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 1.1%. This is a positive change from Timken's previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. Timken's dividend payout ratio is presently 32.73%.

Insiders Place Their Bets

In related news, Director Ajita G. Rajendra sold 8,450 shares of Timken stock in a transaction on Friday, June 5th. The shares were sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the transaction, the director owned 20,225 shares in the company, valued at approximately $2,656,351.50. The trade was a 29.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard G. Kyle sold 8,448 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $127.35, for a total value of $1,075,852.80. Following the completion of the sale, the director owned 197,361 shares of the company's stock, valued at approximately $25,133,923.35. This represents a 4.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 69,079 shares of company stock worth $8,296,144 over the last ninety days. 8.10% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several equities analysts recently issued reports on TKR shares. Weiss Ratings reissued a "hold (c+)" rating on shares of Timken in a research note on Friday. DA Davidson initiated coverage on Timken in a report on Tuesday, June 16th. They issued a "neutral" rating and a $130.00 price target for the company. The Goldman Sachs Group increased their price target on Timken from $128.00 to $142.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. KeyCorp lifted their price objective on Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. Finally, Morgan Stanley set a $140.00 target price on Timken in a research note on Thursday, May 21st. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $149.62.

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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