Peregrine Investment Management Inc. Makes New $7.04 Million Investment in Timken Company (The) $TKR

Key Points

• Peregrine Investment Management opened a new position in Timken during the first quarter, buying 70,000 shares valued at about $7.04 million. The stake represents roughly 5.5% of Peregrine’s portfolio.
• Timken insiders were net sellers recently, with directors John M. Timken, Jr. and Richard G. Kyle selling shares in May. Overall, insiders sold 81,817 shares worth about $9.3 million over the last 90 days.
• The company reported stronger-than-expected quarterly results, including $1.67 EPS on $1.23 billion in revenue, and raised its quarterly dividend to $0.36 per share. Analysts currently see Timken as a Moderate Buy with a consensus target price around $132.38.

Peregrine Investment Management Inc. bought a new position in shares of Timken Company (The) (NYSE:TKR - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 70,000 shares of the industrial products company's stock, valued at approximately $7,040,000. Timken comprises approximately 5.5% of Peregrine Investment Management Inc.'s investment portfolio, making the stock its 10th largest position. Peregrine Investment Management Inc. owned about 0.10% of Timken at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Uncommon Cents Investing LLC boosted its holdings in shares of Timken by 0.5% during the 4th quarter. Uncommon Cents Investing LLC now owns 27,465 shares of the industrial products company's stock valued at $2,311,000 after acquiring an additional 125 shares in the last quarter. Quadrant Capital Group LLC raised its position in Timken by 3.2% during the 3rd quarter. Quadrant Capital Group LLC now owns 4,319 shares of the industrial products company's stock worth $325,000 after purchasing an additional 132 shares during the last quarter. Kornitzer Capital Management Inc. KS raised its position in Timken by 1.3% during the 3rd quarter. Kornitzer Capital Management Inc. KS now owns 10,889 shares of the industrial products company's stock worth $819,000 after purchasing an additional 139 shares during the last quarter. Hilltop Holdings Inc. raised its position in Timken by 3.7% during the 3rd quarter. Hilltop Holdings Inc. now owns 3,997 shares of the industrial products company's stock worth $300,000 after purchasing an additional 142 shares during the last quarter. Finally, Winslow Asset Management Inc. raised its position in Timken by 2.5% during the 3rd quarter. Winslow Asset Management Inc. now owns 6,114 shares of the industrial products company's stock worth $460,000 after purchasing an additional 150 shares during the last quarter. 89.08% of the stock is currently owned by institutional investors.

Insider Transactions at Timken

In related news, Director John M. Timken, Jr. sold 15,000 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $116.51, for a total value of $1,747,650.00. Following the completion of the sale, 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 position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Richard G. Kyle sold 37,181 shares of the business's stock in a transaction dated Friday, May 8th. The shares were 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 of the company's stock, valued at $24,225,429.70. The trade was a 15.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 81,817 shares of company stock valued at $9,298,160 over the last ninety days. 8.10% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on TKR. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Timken in a research report on Monday, April 20th. JPMorgan Chase & Co. raised Timken from an "underweight" rating to a "neutral" rating and raised their target price for the stock from $110.00 to $130.00 in a research report on Friday. KeyCorp raised their target price on Timken from $130.00 to $140.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $117.00 target price on shares of Timken in a research report on Wednesday. Finally, Oppenheimer lifted their price objective on Timken from $117.00 to $132.00 and gave the stock an "outperform" rating in a research report on Thursday, May 7th. Five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $132.38.

Timken Stock Performance

TKR stock opened at $114.55 on Monday. The stock has a 50-day moving average price of $105.08 and a 200-day moving average price of $95.34. Timken Company has a 1-year low of $67.14 and a 1-year high of $123.67. The company has a current ratio of 2.88, a quick ratio of 1.55 and a debt-to-equity ratio of 0.60. The firm has a market cap of $7.96 billion, a PE ratio of 26.03, a price-to-earnings-growth ratio of 1.56 and a beta of 1.18.

Timken (NYSE:TKR - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.17. Timken had a return on equity of 11.84% and a net margin of 6.60%.The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period last year, the company posted $1.40 EPS. The business's quarterly revenue was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. As a group, equities research analysts expect that Timken Company will post 6.03 earnings per share for the current year.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 19th will be given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, May 19th. This is a positive change from Timken's previous quarterly dividend of $0.35. Timken's dividend payout ratio is presently 32.73%.

About Timken

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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