Principal Financial Group Inc. Trims Position in Timken Company (The) $TKR

Key Points

• Principal Financial Group cut its Timken stake by 8.4% in the first quarter, though it still held 632,826 shares worth about $63.6 million at quarter-end. Overall, institutional investors own 89.08% of the company.
• Timken posted better-than-expected Q1 earnings, reporting $1.67 EPS on revenue of $1.23 billion versus forecasts of $1.50 EPS and $1.17 billion in revenue. Revenue rose 8% year over year, and the company raised its full-year guidance.
• The company also raised its quarterly dividend to $0.36 per share from $0.35, and analysts remain largely positive with a consensus rating of Moderate Buy and an average price target of $149.62.

Principal Financial Group Inc. decreased its position in Timken Company (The) (NYSE:TKR - Free Report) by 8.4% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 632,826 shares of the industrial products company's stock after selling 57,720 shares during the quarter. Principal Financial Group Inc. owned approximately 0.91% of Timken worth $63,643,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in TKR. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Timken during the 4th quarter valued at about $25,000. Clearstead Advisors LLC boosted its holdings in shares of Timken by 130.3% in the fourth quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock worth $26,000 after buying an additional 172 shares during the last quarter. Eastern Bank bought a new stake in Timken during the fourth quarter valued at approximately $27,000. V Square Quantitative Management LLC bought a new stake in Timken during the fourth quarter valued at approximately $31,000. Finally, Kestra Investment Management LLC purchased a new stake in Timken during the second quarter valued at approximately $42,000. 89.08% of the stock is currently owned by institutional investors.

Timken Stock Performance

TKR opened at $137.49 on Friday. The firm has a market cap of $9.56 billion, a P/E ratio of 31.25, a PEG ratio of 1.67 and a beta of 1.20. Timken Company has a 1-year low of $70.57 and a 1-year high of $146.37. The company has a 50 day simple moving average of $132.10 and a two-hundred day simple moving average of $111.78. 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 (NYSE:TKR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 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 firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period last year, the firm earned $1.40 EPS. The company's revenue 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 forecast that Timken Company will post 6.14 earnings per share for the current fiscal year.

Timken Increases Dividend

The firm also recently declared 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. This represents a $1.44 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 19th. Timken's payout ratio is 32.73%.

Insider Activity

In related news, Director Richard G. Kyle sold 37,181 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $117.34, for a total transaction of $4,362,818.54. Following the completion of the sale, the director owned 206,455 shares in the company, valued at approximately $24,225,429.70. This trade represents a 15.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Ajita G. Rajendra sold 8,450 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was 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 represents a 29.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 69,079 shares of company stock worth $8,296,144 over the last ninety days. Corporate insiders own 8.10% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on TKR shares. JPMorgan Chase & Co. increased their price target on shares of Timken from $150.00 to $160.00 and gave the stock an "overweight" rating in a research report on Monday. DA Davidson began coverage on shares of Timken in a research report on Tuesday, June 16th. They set a "neutral" rating and a $130.00 price objective for the company. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Timken in a report on Monday, April 20th. KeyCorp lifted their target price on Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a research report on Monday. Finally, Citigroup boosted their price target on Timken from $140.00 to $160.00 and gave the company a "buy" rating in a report on Tuesday. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $149.62.

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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