Vulcan Value Partners LLC Reduces Holdings in Timken Company (The) $TKR

Key Points

• Vulcan Value Partners cut its Timken stake by 44.3% in the fourth quarter, leaving it with 138,434 shares valued at about $11.65 million.
• Despite the reduction by one fund, Timken remains heavily held by institutions, which own about 89.08% of the company’s stock. Several analysts also maintain a generally positive outlook, with a consensus rating of Moderate Buy and a price target of $141.62.
• Timken reported better-than-expected quarterly results, including EPS of $1.67 versus estimates of $1.50 and revenue of $1.23 billion. The company also raised its quarterly dividend to $0.36 per share, up from $0.35.

Vulcan Value Partners LLC decreased its stake in shares of Timken Company (The) (NYSE:TKR - Free Report) by 44.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 138,434 shares of the industrial products company's stock after selling 110,166 shares during the period. Vulcan Value Partners LLC owned approximately 0.20% of Timken worth $11,646,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of TKR. Uncommon Cents Investing LLC lifted its holdings in Timken by 0.5% in the fourth quarter. Uncommon Cents Investing LLC now owns 27,465 shares of the industrial products company's stock worth $2,311,000 after buying an additional 125 shares during the period. Quadrant Capital Group LLC grew its holdings in shares of 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 acquiring an additional 132 shares during the period. Hilltop Holdings Inc. grew its holdings in shares of 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 acquiring an additional 142 shares during the period. Clearstead Advisors LLC raised its position in shares of Timken by 130.3% in the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock worth $26,000 after acquiring an additional 172 shares in the last quarter. Finally, Verdence Capital Advisors LLC raised its position in shares of Timken by 3.0% in the 4th quarter. Verdence Capital Advisors LLC now owns 6,576 shares of the industrial products company's stock worth $553,000 after acquiring an additional 190 shares in the last quarter. Hedge funds and other institutional investors own 89.08% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on TKR. The Goldman Sachs Group set a $128.00 price target on Timken in a research report on Friday, May 22nd. DA Davidson initiated coverage on Timken in a report on Tuesday, June 16th. They issued a "neutral" rating and a $130.00 price objective for the company. Wall Street Zen raised Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. Citigroup boosted their target price on shares of Timken from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Timken in a research report on Monday, April 20th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $141.62.

Insider Activity

In related news, Director Richard G. Kyle sold 37,181 shares of the business's stock in a transaction that occurred on 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 transaction, the director directly owned 206,455 shares in the company, valued at approximately $24,225,429.70. The trade was a 15.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $116.51, for a total transaction 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. This represents a 5.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 69,079 shares of company stock valued at $8,296,144 in the last ninety days. Corporate insiders own 8.10% of the company's stock.

Timken Price Performance

NYSE TKR opened at $141.71 on Friday. Timken Company has a one year low of $69.25 and a one year high of $143.56. The stock has a 50-day moving average of $120.12 and a 200 day moving average of $104.26. The company has a market capitalization of $9.85 billion, a price-to-earnings ratio of 32.21, a PEG ratio of 1.70 and a beta of 1.21. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.55 and a current ratio of 2.88.

Timken (NYSE:TKR - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share 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 during the quarter, compared to analysts' expectations of $1.17 billion. During the same period in the previous year, the company earned $1.40 earnings per share. The firm'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. On average, sell-side analysts forecast that Timken Company will post 6.14 EPS for the current year.

Timken Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 19th. This is an increase from Timken's previous quarterly dividend of $0.35. Timken's payout ratio is presently 32.73%.

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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