United Services Automobile Association Acquires New Position in Timken Company (The) $TKR

Key Points

• United Services Automobile Association has acquired a new position in Timken Company, purchasing 4,248 shares valued at approximately $306,000.
• Timken reported quarterly earnings of $1.42 per share, surpassing the consensus estimate of $1.34, despite a year-over-year revenue decline of 0.8%.
• The company declared a quarterly dividend of $0.35, translating to an annual yield of 1.8% with a payout ratio of 31.82%.

United Services Automobile Association purchased a new position in Timken Company (The) (NYSE:TKR - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 4,248 shares of the industrial products company's stock, valued at approximately $306,000.

Several other hedge funds have also recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in Timken by 2.8% in the first quarter. Vanguard Group Inc. now owns 6,646,465 shares of the industrial products company's stock worth $477,681,000 after purchasing an additional 180,705 shares in the last quarter. American Century Companies Inc. boosted its position in Timken by 7.3% in the first quarter. American Century Companies Inc. now owns 3,390,125 shares of the industrial products company's stock valued at $243,648,000 after buying an additional 231,435 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Timken by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,367,167 shares of the industrial products company's stock valued at $170,124,000 after buying an additional 133,674 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its position in Timken by 2.4% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 1,990,929 shares of the industrial products company's stock valued at $143,088,000 after buying an additional 46,090 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its position in Timken by 108.8% in the first quarter. Victory Capital Management Inc. now owns 1,841,828 shares of the industrial products company's stock valued at $132,372,000 after buying an additional 959,672 shares in the last quarter. Institutional investors and hedge funds own 89.08% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Evercore ISI set a $84.00 price target on shares of Timken and gave the company an "outperform" rating in a research report on Tuesday, August 19th. Citigroup boosted their price target on shares of Timken from $75.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. DA Davidson boosted their price target on shares of Timken from $71.00 to $80.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. assumed coverage on shares of Timken in a research report on Monday. They issued a "neutral" rating and a $80.00 price target on the stock. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $79.82.

Timken Price Performance

Shares of TKR stock traded down $0.14 during trading hours on Monday, reaching $77.38. 953,881 shares of the company were exchanged, compared to its average volume of 626,208. Timken Company has a fifty-two week low of $56.20 and a fifty-two week high of $87.52. The stock's fifty day moving average is $77.39 and its two-hundred day moving average is $72.46. The company has a market cap of $5.39 billion, a price-to-earnings ratio of 17.59, a P/E/G ratio of 1.70 and a beta of 1.25. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.13 and a quick ratio of 1.72.

Timken (NYSE:TKR - Get Free Report) last issued its earnings results on Wednesday, July 30th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.34 by $0.08. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. Timken had a net margin of 6.86% and a return on equity of 11.78%. The company's revenue for the quarter was down .8% on a year-over-year basis. During the same quarter last year, the firm earned $1.63 EPS. Timken has set its FY 2025 guidance at 5.100-5.400 EPS. Sell-side analysts forecast that Timken Company will post 5.62 earnings per share for the current fiscal year.

Timken Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Tuesday, August 19th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.8%. The ex-dividend date was Tuesday, August 19th. Timken's dividend payout ratio is currently 31.82%.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.