The Timken Company (NYSE:TKR) Declares Dividend Increase - $0.35 Per Share

The Timken Company (NYSE:TKR - Get Free Report) announced a quarterly dividend on Friday, May 2nd, RTT News reports. Stockholders of record on Tuesday, May 13th will be paid a dividend of 0.35 per share by the industrial products company on Friday, May 23rd. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.10%. This is a 2.9% increase from Timken's previous quarterly dividend of $0.34.

Timken has increased its dividend by an average of 4.3% per year over the last three years and has raised its dividend annually for the last 11 consecutive years. Timken has a payout ratio of 21.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Timken to earn $6.71 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 20.3%.

Timken Stock Up 3.5 %

Timken stock traded up $2.23 during midday trading on Friday, reaching $66.58. The stock had a trading volume of 576,975 shares, compared to its average volume of 555,890. The stock has a market capitalization of $4.66 billion, a P/E ratio of 13.34, a price-to-earnings-growth ratio of 1.51 and a beta of 1.28. The firm's fifty day simple moving average is $68.90 and its 200-day simple moving average is $74.55. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.61 and a current ratio of 3.07. Timken has a 1-year low of $56.20 and a 1-year high of $93.66.

Timken (NYSE:TKR - Get Free Report) last posted its quarterly earnings data on Wednesday, April 30th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.43 by ($0.03). Timken had a net margin of 7.71% and a return on equity of 13.93%. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.13 billion. During the same quarter last year, the business earned $1.77 earnings per share. Timken's revenue for the quarter was down 4.2% on a year-over-year basis. As a group, analysts expect that Timken will post 5.62 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on TKR shares. Morgan Stanley decreased their price objective on Timken from $94.00 to $88.00 and set an "overweight" rating for the company in a report on Wednesday, April 16th. Citigroup lowered their price target on Timken from $95.00 to $70.00 and set a "buy" rating on the stock in a research report on Tuesday, April 8th. Loop Capital cut their price objective on Timken from $85.00 to $65.00 and set a "hold" rating for the company in a report on Thursday, April 17th. Evercore ISI boosted their target price on shares of Timken from $91.00 to $102.00 and gave the stock an "outperform" rating in a report on Wednesday, February 19th. Finally, DA Davidson reiterated a "neutral" rating and issued a $66.00 price target (down previously from $97.00) on shares of Timken in a research note on Monday, April 21st. Seven equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $79.20.

Insider Buying and Selling

In related news, CFO Philip D. Fracassa sold 5,000 shares of Timken stock in a transaction that occurred on Friday, February 7th. The stock was sold at an average price of $81.50, for a total transaction of $407,500.00. Following the completion of the sale, the chief financial officer now directly owns 90,541 shares of the company's stock, valued at approximately $7,379,091.50. This trade represents a 5.23 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 8.37% of the stock is currently owned by insiders.

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.