California State Teachers Retirement System Increases Holdings in Timken Company (The) $TKR

Key Points

• California State Teachers Retirement System increased its Timken holdings by 26.8% in the first quarter to 78,223 shares valued at approximately $7.9 million. Institutional investors collectively own 89.08% of the company.
• Timken reported quarterly revenue of $1.26 billion and adjusted EPS of $1.83, beating analyst estimates of $1.23 billion and $1.62, respectively. Management set fiscal 2026 adjusted EPS guidance at $6.05–$6.35, while an impairment charge tied to its belts-business divestiture reduced GAAP earnings.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $150, although shares recently traded down 6.5% to $132.55. Timken also raised its quarterly dividend to $0.36 per share, while insiders sold approximately $8.3 million of stock over the past three months.

California State Teachers Retirement System grew its holdings in Timken Company (The) (NYSE:TKR - Free Report) by 26.8% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 78,223 shares of the industrial products company's stock after buying an additional 16,535 shares during the quarter. California State Teachers Retirement System owned approximately 0.11% of Timken worth $7,867,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the business. Gordian Capital Singapore Pte Ltd purchased a new stake in Timken in the fourth quarter worth about $25,000. Clearstead Advisors LLC grew its holdings in shares of Timken by 130.3% during the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock worth $26,000 after acquiring an additional 172 shares during the period. V Square Quantitative Management LLC bought a new position in shares of Timken in the 4th quarter worth approximately $31,000. Kestra Investment Management LLC purchased a new position in shares of Timken in the 2nd quarter valued at approximately $42,000. Finally, Danske Bank A S purchased a new position in shares of Timken in the 3rd quarter valued at approximately $45,000. 89.08% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Evercore reaffirmed an "outperform" rating and issued a $158.00 price target on shares of Timken in a research note on Monday, May 11th. The Goldman Sachs Group raised their price objective on Timken from $128.00 to $142.00 and gave the company a "neutral" rating in a research report on Friday, July 10th. KeyCorp boosted their target price on shares of Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, July 13th. DA Davidson initiated coverage on shares of Timken in a research report on Tuesday, June 16th. They issued a "neutral" rating and a $130.00 target price on the stock. Finally, Oppenheimer increased their price target on shares of Timken from $147.00 to $150.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 21st. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Timken presently has a consensus rating of "Moderate Buy" and a consensus price target of $150.00.

Timken Trading Down 6.5%

NYSE:TKR opened at $132.55 on Wednesday. The stock has a market cap of $9.21 billion, a price-to-earnings ratio of 30.13, a PEG ratio of 1.69 and a beta of 1.21. The company has a quick ratio of 1.55, a current ratio of 2.88 and a debt-to-equity ratio of 0.60. The company's 50 day moving average price is $137.51 and its 200-day moving average price is $116.33. Timken Company has a 52 week low of $70.57 and a 52 week high of $146.37.

Timken (NYSE:TKR - Get Free Report) last posted 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 during the quarter, compared to analyst estimates of $1.23 billion. Timken had a return on equity of 11.84% and a net margin of 6.60%.The company's quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.12 EPS. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. On average, equities research analysts forecast that Timken Company will post 6.16 earnings per share for the current fiscal year.

Timken Increases Dividend

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

Insider Transactions at Timken

In other news, Director John M. Timken, Jr. sold 15,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $116.51, for a total transaction of $1,747,650.00. Following the completion of the transaction, the director directly owned 264,744 shares of the company's stock, valued at $30,845,323.44. The trade was a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ajita G. Rajendra sold 8,450 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the completion of the sale, the director owned 20,225 shares in the company, valued at $2,656,351.50. This represents a 29.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 69,079 shares of company stock worth $8,296,144 over the last three months. 8.10% of the stock is currently owned by company insiders.

More Timken News

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Timken reported second-quarter sales of $1.26 billion, up 7.5% year over year and above the $1.23 billion consensus estimate. Adjusted EPS of $1.83 also exceeded expectations of approximately $1.62-$1.63 and increased from $1.12 a year earlier. Timken Reports Second-Quarter 2026 Results
• Positive Sentiment: Organic sales rose 4.4%, with Engineered Bearings revenue up 3.8% and Industrial Motion revenue up 14.6%. Timken also generated $80.5 million in free cash flow during the quarter. Timken Q2 sales rise 7.5% to $1.26 billion
• Neutral Sentiment: Management raised its 2026 adjusted EPS outlook to $6.05-$6.35, versus consensus of about $6.14, while maintaining revenue expectations near $4.8 billion. However, the company now expects full-year GAAP EPS of only $3.75-$4.05, reflecting the effect of a belts-business impairment and related divestiture actions. Timken Q2 Earnings and Revenues Surpass Estimates
• Negative Sentiment: GAAP net income fell to $28.9 million, or $0.41 per diluted share, from $78.5 million, or $1.12, a year earlier. Net margin declined to 2.3% from 6.7%, primarily because of the impairment charge tied to the planned belts-business divestiture. Timken Q2 Earnings Snapshot
• Negative Sentiment: The market reaction suggests investors focused more on the sharp GAAP earnings decline, the divestiture-related charge and the relatively modest outlook than on the adjusted earnings beat. Reports also noted that insiders made several open-market sales in recent months, adding to sentiment pressure. Why Timken shares are plunging today

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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