Federated Hermes Inc. Reduces Stake in Timken Company (The) (NYSE:TKR)

Key Points

• Federated Hermes Inc. drastically reduced its stake in Timken Company by 97.5%, holding only 6,042 shares worth approximately $434,000 after selling 239,626 shares in the first quarter.
• Multiple hedge funds have adjusted their positions in Timken, with Dimensional Fund Advisors increasing its stake by 5.9%, while Victory Capital Management raised its holdings by 108.8% in the same quarter.
• Analysts have varied opinions on Timken's stock, with an average target price of $79.90 and a majority rating it as a "Hold," though some analysts have also set "Buy" ratings with targets reaching up to $90.00.

Federated Hermes Inc. reduced its stake in Timken Company (The) (NYSE:TKR - Free Report) by 97.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 6,042 shares of the industrial products company's stock after selling 239,626 shares during the period. Federated Hermes Inc.'s holdings in Timken were worth $434,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of TKR. Victory Capital Management Inc. increased its stake in Timken by 108.8% in the first quarter. Victory Capital Management Inc. now owns 1,841,828 shares of the industrial products company's stock valued at $132,372,000 after purchasing an additional 959,672 shares in the last quarter. Millennium Management LLC increased its stake in Timken by 1,421.1% in the fourth quarter. Millennium Management LLC now owns 458,700 shares of the industrial products company's stock valued at $32,737,000 after purchasing an additional 428,545 shares in the last quarter. Cooke & Bieler LP bought a new stake in Timken in the first quarter valued at $18,041,000. Voloridge Investment Management LLC increased its stake in Timken by 193.8% in the fourth quarter. Voloridge Investment Management LLC now owns 364,498 shares of the industrial products company's stock valued at $26,014,000 after purchasing an additional 240,417 shares in the last quarter. Finally, New York State Common Retirement Fund increased its stake in Timken by 108.1% in the first quarter. New York State Common Retirement Fund now owns 424,121 shares of the industrial products company's stock valued at $30,482,000 after purchasing an additional 220,294 shares in the last quarter. 89.08% of the stock is owned by institutional investors.

Timken Stock Up 3.7%

TKR stock traded up $2.75 during trading on Tuesday, reaching $76.90. The stock had a trading volume of 260,817 shares, compared to its average volume of 672,993. Timken Company has a one year low of $56.20 and a one year high of $87.52. The company has a quick ratio of 1.72, a current ratio of 3.13 and a debt-to-equity ratio of 0.65. The company's 50 day moving average is $75.04 and its two-hundred day moving average is $73.05. The company has a market capitalization of $5.36 billion, a price-to-earnings ratio of 17.48, a P/E/G ratio of 1.63 and a beta of 1.30.

Timken (NYSE:TKR - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.08. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. Timken had a net margin of 6.86% and a return on equity of 11.78%. The firm's quarterly revenue was down .8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.63 EPS. Equities research analysts forecast that Timken Company will post 5.62 EPS for the current year.

Timken Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Tuesday, August 19th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Tuesday, August 19th. Timken's payout ratio is presently 31.82%.

Analyst Ratings Changes

Several research firms have recently commented on TKR. DA Davidson boosted their target price on shares of Timken from $71.00 to $80.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. Evercore ISI decreased their target price on shares of Timken from $102.00 to $85.00 and set an "outperform" rating for the company in a research report on Monday, May 19th. Morgan Stanley decreased their target price on shares of Timken from $94.00 to $88.00 and set an "overweight" rating for the company in a research report on Wednesday, April 16th. Oppenheimer decreased their target price on shares of Timken from $90.00 to $88.00 and set an "outperform" rating for the company in a research report on Thursday, May 1st. Finally, Citigroup boosted their target price on shares of Timken from $75.00 to $80.00 and gave the stock a "buy" rating in a research report on Tuesday, June 24th. Six investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $79.90.

Timken Profile

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.