Royce & Associates LP Trims Holdings in Timken Company (The) $TKR

Key Points

• Royce & Associates LP reduced its Timken stake by 15.7% in the fourth quarter, selling 61,633 shares and leaving it with 331,004 shares valued at about $27.8 million.
• Timken reported better-than-expected first-quarter results, posting EPS of $1.67 versus the $1.50 consensus and revenue of $1.23 billion, up 8% year over year.
• The company raised its quarterly dividend to $0.36 per share from $0.35, while analysts currently rate the stock a consensus Moderate Buy with an average target price of $136.63.

Royce & Associates LP cut its position in shares of Timken Company (The) (NYSE:TKR - Free Report) by 15.7% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 331,004 shares of the industrial products company's stock after selling 61,633 shares during the quarter. Royce & Associates LP owned 0.48% of Timken worth $27,847,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in TKR. Royal Bank of Canada increased its stake in Timken by 44.2% during the first quarter. Royal Bank of Canada now owns 90,550 shares of the industrial products company's stock valued at $6,508,000 after purchasing an additional 27,750 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Timken by 147.0% during the first quarter. Goldman Sachs Group Inc. now owns 355,765 shares of the industrial products company's stock worth $25,569,000 after purchasing an additional 211,718 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Timken by 7.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,872 shares of the industrial products company's stock worth $16,305,000 after purchasing an additional 16,000 shares during the period. Prudential Financial Inc. raised its holdings in shares of Timken by 18.7% during the second quarter. Prudential Financial Inc. now owns 6,815 shares of the industrial products company's stock worth $494,000 after purchasing an additional 1,075 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Timken by 241.7% during the second quarter. Invesco Ltd. now owns 604,879 shares of the industrial products company's stock worth $43,884,000 after purchasing an additional 427,879 shares during the period. 89.08% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have weighed in on TKR shares. DA Davidson increased their target price on shares of Timken from $117.00 to $120.00 and gave the stock a "neutral" rating in a report on Thursday, May 21st. Weiss Ratings reissued a "hold (c+)" rating on shares of Timken in a report on Monday, April 20th. Morgan Stanley set a $140.00 target price on shares of Timken in a report on Thursday. JPMorgan Chase & Co. raised shares of Timken from an "underweight" rating to a "neutral" rating and increased their target price for the stock from $110.00 to $130.00 in a report on Friday, May 15th. Finally, Wall Street Zen raised shares of Timken from a "hold" rating to a "buy" rating in a report on Sunday, March 1st. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $136.63.

Timken Price Performance

Shares of NYSE TKR opened at $120.08 on Tuesday. Timken Company has a 1-year low of $67.14 and a 1-year high of $123.67. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55. The business's fifty day moving average price is $106.88 and its two-hundred day moving average price is $96.97. The firm has a market capitalization of $8.35 billion, a PE ratio of 27.29, a P/E/G ratio of 1.63 and a beta of 1.18.

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 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 for the quarter, compared to analyst estimates of $1.17 billion. During the same period last year, the company earned $1.40 earnings per share. The firm'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. On average, research analysts expect that Timken Company will post 6.05 EPS for the current year.

Timken Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th will be given a $0.36 dividend. This is a boost from Timken's previous quarterly dividend of $0.35. This represents a $1.44 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, May 19th. Timken's dividend payout ratio is 32.73%.

Insider Buying and Selling at Timken

In other Timken news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction on 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 sale, the director directly owned 264,744 shares of the company's stock, valued at $30,845,323.44. This trade represents a 5.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Richard G. Kyle sold 37,181 shares of the stock in a transaction on 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 represents a 15.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 8.10% of the stock is owned by company insiders.

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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