Vulcan Value Partners LLC Sells 110,166 Shares of Timken Company (The) $TKR

Key Points

• Vulcan Value Partners LLC cut its Timken position by 44.3% in the fourth quarter, selling 110,166 shares and leaving it with 138,434 shares valued at about $11.65 million.
• Timken reported better-than-expected quarterly results, posting EPS of $1.67 versus estimates of $1.50 and revenue of $1.23 billion, up 8% year over year. The company also raised its quarterly dividend to $0.36 per share from $0.35.
• Analysts remain constructive on the stock, with several firms raising targets and ratings; the consensus view is now Moderate Buy with an average price target of $139.13.

Vulcan Value Partners LLC reduced its position in shares of Timken Company (The) (NYSE:TKR - Free Report) by 44.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 138,434 shares of the industrial products company's stock after selling 110,166 shares during the period. Vulcan Value Partners LLC owned about 0.20% of Timken worth $11,646,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. New York State Common Retirement Fund lifted its stake in shares of Timken by 6.3% in the third quarter. New York State Common Retirement Fund now owns 461,129 shares of the industrial products company's stock worth $34,668,000 after acquiring an additional 27,515 shares during the period. Keybank National Association OH lifted its stake in shares of Timken by 107.8% in the third quarter. Keybank National Association OH now owns 727,777 shares of the industrial products company's stock worth $54,714,000 after acquiring an additional 377,607 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Timken by 34.8% in the third quarter. Bank of New York Mellon Corp now owns 1,493,167 shares of the industrial products company's stock worth $112,256,000 after acquiring an additional 385,389 shares during the period. Phocas Financial Corp. lifted its stake in shares of Timken by 81.2% in the fourth quarter. Phocas Financial Corp. now owns 88,967 shares of the industrial products company's stock worth $7,485,000 after acquiring an additional 39,871 shares during the period. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of Timken in the third quarter worth approximately $1,678,000. 89.08% of the stock is owned by institutional investors and hedge funds.

Timken Stock Performance

Shares of TKR opened at $127.19 on Thursday. 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 stock has a 50-day moving average of $108.05 and a 200-day moving average of $97.66. The company has a market cap of $8.84 billion, a PE ratio of 28.91, a P/E/G ratio of 1.53 and a beta of 1.18. Timken Company has a one year low of $67.14 and a one year high of $128.31.

Timken (NYSE:TKR - Get Free Report) last issued its earnings results 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 return on equity of 11.84% and a net margin of 6.60%.The company had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same period last year, the business posted $1.40 EPS. The firm's revenue for the quarter was up 8.0% compared to the same quarter last year. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, equities research analysts predict that Timken Company will post 6.13 EPS for the current fiscal year.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, May 19th. This is a positive change from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.1%. Timken's payout ratio is currently 32.73%.

Insider Buying and Selling

In other news, Director John M. Timken, Jr. sold 15,000 shares of the company's 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 transaction, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard G. Kyle sold 37,181 shares of the company'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 value of $4,362,818.54. Following the transaction, the director directly owned 206,455 shares in the company, valued at $24,225,429.70. The trade was a 15.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 8.10% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts recently commented on TKR shares. Wall Street Zen raised Timken from a "hold" rating to a "buy" rating in a research note on Sunday, March 1st. KeyCorp lifted their price objective on Timken from $130.00 to $140.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Timken in a research note on Monday, April 20th. JPMorgan Chase & Co. raised Timken from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $130.00 to $150.00 in a research note on Tuesday. Finally, Evercore reissued an "outperform" rating and issued a $158.00 price target on shares of Timken in a research note on Monday, May 11th. 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, Timken has a consensus rating of "Moderate Buy" and an average target price of $139.13.

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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