Timken Company (The) $TKR Shares Sold by Principal Financial Group Inc.

Key Points

• Principal Financial Group cut its Timken stake by 7.3% in the fourth quarter, selling 54,434 shares but still holding 690,546 shares worth about $58.1 million.
• Timken reported better-than-expected Q1 results, with EPS of $1.67 versus $1.50 expected and revenue of $1.23 billion, up 8% year over year.
• The company raised its quarterly dividend to $0.36 per share and received several bullish analyst price-target increases, though the overall consensus rating remains “Hold.”

Principal Financial Group Inc. lessened its stake in Timken Company (The) (NYSE:TKR - Free Report) by 7.3% in the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 690,546 shares of the industrial products company's stock after selling 54,434 shares during the quarter. Principal Financial Group Inc. owned approximately 0.99% of Timken worth $58,098,000 at the end of the most recent reporting period.

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

Insider Activity

In other Timken news, Director Richard G. Kyle sold 19,636 shares of the company's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $107.99, for a total value of $2,120,491.64. Following the transaction, the director owned 243,636 shares of the company's stock, valued at $26,310,251.64. This represents a 7.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 8.10% of the company's stock.

Timken Trading Up 1.4%

Shares of TKR opened at $117.97 on Friday. The company has a current ratio of 2.88, a quick ratio of 1.47 and a debt-to-equity ratio of 0.60. Timken Company has a 12-month low of $67.14 and a 12-month high of $123.67. The firm has a 50-day moving average price of $104.05 and a 200 day moving average price of $93.67. The firm has a market capitalization of $8.20 billion, a P/E ratio of 26.81, a P/E/G ratio of 1.67 and a beta of 1.18.

Timken (NYSE:TKR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the prior year, the firm posted $1.40 earnings per share. Timken'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. Sell-side analysts forecast that Timken Company will post 5.97 EPS for the current year.

Timken Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 19th will be issued a $0.36 dividend. This is an increase from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, May 19th. Timken's payout ratio is currently 31.82%.

Analyst Ratings Changes

Several equities research analysts recently commented on TKR shares. Citigroup boosted their price target on shares of Timken from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday. Morgan Stanley reissued an "overweight" rating and issued a $125.00 price target on shares of Timken in a report on Friday. KeyCorp upped their target price on shares of Timken from $130.00 to $140.00 and gave the stock an "overweight" rating in a report on Thursday. DA Davidson upped their target price on shares of Timken from $86.00 to $108.00 and gave the stock a "neutral" rating in a report on Tuesday, February 10th. Finally, Wall Street Zen raised shares of Timken from a "hold" rating to a "buy" rating in a report on Sunday, March 1st. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Timken has a consensus rating of "Hold" and a consensus target price of $115.88.

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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