Fifth Third Bancorp Acquires 55,465 Shares of Timken Company (The) $TKR

Key Points

• Fifth Third Bancorp dramatically increased its Timken stake, buying 55,465 additional shares in the first quarter and lifting its holdings by 692.6% to 63,473 shares worth about $6.38 million.
• Timken reported strong quarterly results, with earnings per share of $1.67 topping estimates and revenue of $1.23 billion also beating forecasts, while revenue rose 8% year over year.
• The company also raised its dividend to $0.36 per share from $0.35, and analysts remain constructive overall with a consensus Moderate Buy rating and an average price target of $149.62.

Fifth Third Bancorp increased its holdings in shares of Timken Company (The) (NYSE:TKR - Free Report) by 692.6% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 63,473 shares of the industrial products company's stock after acquiring an additional 55,465 shares during the period. Fifth Third Bancorp owned about 0.09% of Timken worth $6,383,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the business. Gordian Capital Singapore Pte Ltd bought a new position in Timken during the fourth quarter worth about $25,000. Clearstead Advisors LLC grew its stake in shares of Timken by 130.3% in the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 172 shares during the period. Eastern Bank acquired a new position in shares of Timken in the 4th quarter worth approximately $27,000. V Square Quantitative Management LLC acquired a new position in shares of Timken in the 4th quarter worth approximately $31,000. Finally, Kestra Investment Management LLC bought a new position in shares of Timken during the 2nd quarter worth approximately $42,000. Institutional investors and hedge funds own 89.08% of the company's stock.

Timken Stock Performance

Shares of NYSE:TKR opened at $137.49 on Friday. The company has a current ratio of 2.88, a quick ratio of 1.55 and a debt-to-equity ratio of 0.60. Timken Company has a 1-year low of $70.57 and a 1-year high of $146.37. The stock has a market capitalization of $9.56 billion, a P/E ratio of 31.25, a P/E/G ratio of 1.67 and a beta of 1.20. The business has a 50-day moving average price of $132.10 and a two-hundred day moving average price of $111.78.

Timken (NYSE:TKR - Get Free Report) last issued its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.17. Timken had a net margin of 6.60% and a return on equity of 11.84%. The company had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the firm earned $1.40 EPS. The company's revenue for the quarter was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. Equities analysts predict that Timken Company will post 6.14 earnings per share for the current year.

Timken Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were issued a dividend of $0.36 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 dividend on an annualized basis and a yield of 1.0%. This is a boost from Timken's previous quarterly dividend of $0.35. Timken's dividend payout ratio (DPR) is presently 32.73%.

Insider Buying and Selling at Timken

In other Timken news, Director John M. Timken, Jr. sold 15,000 shares of the company's stock in a transaction 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 sale, the director owned 264,744 shares in the company, valued at approximately $30,845,323.44. The trade was a 5.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Ajita G. Rajendra sold 8,450 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $131.34, for a total value of $1,109,823.00. Following the completion of the transaction, the director directly owned 20,225 shares in the company, valued at approximately $2,656,351.50. This trade represents a 29.47% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 69,079 shares of company stock worth $8,296,144. Insiders own 8.10% of the company's stock.

Analyst Ratings Changes

Several brokerages recently commented on TKR. Citigroup boosted their price target on Timken from $140.00 to $160.00 and gave the company a "buy" rating in a research note on Tuesday. DA Davidson began coverage on Timken in a report on Tuesday, June 16th. They set a "neutral" rating and a $130.00 price objective for the company. Evercore restated an "outperform" rating and issued a $158.00 target price on shares of Timken in a research note on Monday, May 11th. The Goldman Sachs Group upped their target price on shares of Timken from $128.00 to $142.00 and gave the stock a "neutral" rating in a report on Friday, July 10th. Finally, KeyCorp increased their target price on shares of Timken from $140.00 to $160.00 and gave the stock an "overweight" rating in a research report on Monday. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $149.62.

Timken 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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