Canada Pension Plan Investment Board Acquires Shares of 94,800 Timken Company (The) $TKR

Key Points

• Canada Pension Plan Investment Board initiated a Timken position by purchasing 94,800 shares valued at approximately $13.8 million, representing about 0.14% of the company. Institutional investors collectively own 89.08% of Timken.
• Analysts maintain a generally positive view, with six Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $150. KeyCorp and JPMorgan recently raised their targets to $160.
• 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. The company also pays a quarterly dividend of $0.36 per share, equal to a 1.2% annualized yield.

Canada Pension Plan Investment Board bought a new position in Timken Company (The) (NYSE:TKR - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 94,800 shares of the industrial products company's stock, valued at approximately $13,776,000. Canada Pension Plan Investment Board owned approximately 0.14% of Timken at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Timken in the 2nd quarter worth about $869,997,000. Dimensional Fund Advisors LP grew its position in Timken by 8.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,886,955 shares of the industrial products company's stock valued at $290,320,000 after purchasing an additional 214,845 shares during the last quarter. UBS Group AG grew its position in Timken by 734.7% during the 3rd quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company's stock valued at $171,880,000 after purchasing an additional 2,012,352 shares during the last quarter. Victory Capital Management Inc. increased its stake in Timken by 15.5% during the 4th quarter. Victory Capital Management Inc. now owns 1,843,042 shares of the industrial products company's stock valued at $155,055,000 after purchasing an additional 247,000 shares in the last quarter. Finally, Invesco Ltd. increased its stake in Timken by 1.0% during the 4th quarter. Invesco Ltd. now owns 1,371,613 shares of the industrial products company's stock valued at $115,394,000 after purchasing an additional 13,459 shares in the last quarter. 89.08% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on TKR. KeyCorp lifted their target price on shares of Timken from $140.00 to $160.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Morgan Stanley set a $140.00 price target on shares of Timken in a report on Thursday, May 21st. Weiss Ratings raised shares of Timken from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 20th. JPMorgan Chase & Co. boosted their price objective on shares of Timken from $150.00 to $160.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Finally, Oppenheimer upped their price objective on Timken from $147.00 to $150.00 and gave the company an "outperform" rating in a research report on Tuesday, July 21st. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $150.00.

Timken Price Performance

Shares of NYSE:TKR opened at $121.05 on Friday. Timken Company has a fifty-two week low of $70.57 and a fifty-two week high of $146.37. The business has a 50-day simple moving average of $135.03 and a two-hundred day simple moving average of $120.23. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.74 and a current ratio of 3.10. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of 32.80, a price-to-earnings-growth ratio of 1.46 and a beta of 1.21.

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

Timken Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, August 18th were given a dividend of $0.36 per share. The ex-dividend date was Tuesday, August 18th. This represents a $1.44 dividend on an annualized basis and a yield of 1.2%. Timken's dividend payout ratio is 39.02%.

Insider Activity at Timken

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

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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