Moody National Bank Trust Division Raises Stock Holdings in Timken Company (The) $TKR

Key Points

• Moody National Bank Trust Division nearly doubled its Timken stake during the second quarter, increasing holdings by 95% to 36,495 shares valued at approximately $5.3 million. Institutional investors collectively own 89.08% of TKR.
• Timken’s second-quarter results exceeded expectations, with sales rising 7.5% year over year to $1.26 billion and adjusted EPS reaching $1.83. Management raised its 2026 adjusted EPS outlook to $6.05–$6.35, while maintaining revenue guidance near $4.8 billion.
• Despite the adjusted earnings beat, GAAP net income dropped to $28.9 million because of an impairment charge tied to the planned belts-business divestiture. Shares were trading down 6.5%, while analysts maintained a “Moderate Buy” consensus and an average price target of $150.

Moody National Bank Trust Division lifted its stake in Timken Company (The) (NYSE:TKR - Free Report) by 95.0% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 36,495 shares of the industrial products company's stock after buying an additional 17,778 shares during the quarter. Moody National Bank Trust Division owned about 0.05% of Timken worth $5,303,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in TKR. Gordian Capital Singapore Pte Ltd purchased a new stake in Timken in the 4th quarter worth approximately $25,000. Clearstead Advisors LLC raised its stake in 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 purchased a new position in Timken during the fourth quarter valued at approximately $31,000. Kestra Investment Management LLC purchased a new position in Timken during the second quarter valued at approximately $42,000. Finally, Danske Bank A S bought a new position in shares of Timken in the third quarter worth approximately $45,000. 89.08% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on TKR shares. Weiss Ratings restated a "hold (c+)" rating on shares of Timken in a research report on Friday, July 17th. KeyCorp upped 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. Evercore reiterated an "outperform" rating and issued a $158.00 price target on shares of Timken in a research note on Monday, May 11th. JPMorgan Chase & Co. raised their price target on Timken from $150.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Finally, Oppenheimer boosted 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 issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $150.00.

Insider Buying and Selling at Timken

In other news, Director Ajita G. Rajendra sold 8,450 shares of the firm's stock in a transaction dated 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 transaction, the director owned 20,225 shares in the company, valued at $2,656,351.50. This trade represents a 29.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Richard G. Kyle sold 37,181 shares of Timken stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $117.34, for a total value of $4,362,818.54. Following the completion of the sale, the director directly owned 206,455 shares in the company, valued at $24,225,429.70. This trade represents a 15.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 69,079 shares of company stock valued at $8,296,144 in the last 90 days. Insiders own 8.10% of the company's stock.

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 Trading Down 6.5%

Timken stock opened at $132.55 on Wednesday. The stock has a market cap of $9.21 billion, a P/E ratio of 30.13, a PEG ratio of 1.69 and a beta of 1.21. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55. Timken Company has a 1 year low of $70.57 and a 1 year high of $146.37. The firm's 50 day moving average price is $137.51 and its 200-day moving average price is $116.33.

Timken (NYSE:TKR - Get Free Report) last released its earnings results on Tuesday, August 4th. The industrial products company reported $1.83 EPS for the quarter, topping the consensus estimate of $1.62 by $0.21. The firm had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.23 billion. Timken had a net margin of 6.60% and a return on equity of 11.84%. The company's quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.12 earnings per share. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. On average, equities analysts predict that Timken Company will post 6.16 earnings per share for the current fiscal year.

Timken Increases Dividend

The business also recently disclosed 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. This is a boost from Timken's previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 annualized dividend and a dividend yield of 1.1%. Timken's payout ratio is currently 32.73%.

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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