Timken Company (The) (NYSE:TKR) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Timken has a consensus analyst rating of “Moderate Buy”, with six buy ratings and three hold ratings from nine covering firms. The average 12-month price target is about $141.63.
• The company recently posted strong quarterly results, with EPS of $1.67 beating estimates and revenue of $1.23 billion topping forecasts. Timken also raised its full-year guidance and increased its quarterly dividend to $0.36 per share.
• Shares have rallied sharply, trading near $141.23 versus a 52-week low of $70.57, while insiders have been selling stock in recent months. Institutional investors remain heavily involved, with about 89% of shares held by hedge funds and other institutions.

Shares of Timken Company (The) (NYSE:TKR - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the nine research firms that are currently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $141.6250.

A number of equities analysts have recently commented on TKR shares. Wall Street Zen upgraded shares of Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. DA Davidson started coverage on shares of Timken in a research report on Tuesday, June 16th. They set a "neutral" rating and a $130.00 target price for the company. Citigroup lifted their target price on shares of Timken from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Oppenheimer boosted their price objective on shares of Timken from $137.00 to $147.00 and gave the stock an "outperform" rating in a report on Friday, June 5th. Finally, JPMorgan Chase & Co. upgraded shares of Timken from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $130.00 to $150.00 in a report on Tuesday, May 26th.

Timken Price Performance

TKR opened at $141.23 on Friday. The company has a market capitalization of $9.82 billion, a price-to-earnings ratio of 32.10, a PEG ratio of 1.69 and a beta of 1.21. The company has a quick ratio of 1.55, a current ratio of 2.88 and a debt-to-equity ratio of 0.60. The firm has a 50-day moving average price of $123.56 and a 200-day moving average price of $106.32. Timken has a twelve month low of $70.57 and a twelve month high of $145.61.

Timken (NYSE:TKR - Get Free Report) last posted its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.17. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.17 billion. Timken had a net margin of 6.60% and a return on equity of 11.84%. The company's revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the company earned $1.40 earnings per share. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. Equities analysts expect that Timken will post 6.14 EPS for the current year.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Tuesday, May 19th were paid a $0.36 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This is a positive change from Timken's previous quarterly dividend of $0.35. This represents a $1.44 annualized dividend and a dividend yield of 1.0%. Timken's payout ratio is presently 32.73%.

Insider Buying and Selling

In related news, Director John M. Timken, Jr. sold 15,000 shares of Timken stock in a transaction on Friday, May 8th. The shares were sold at an average price of $116.51, for a total value 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. The trade was a 5.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard G. Kyle sold 37,181 shares of Timken stock in a transaction 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 69,079 shares of company stock valued at $8,296,144 over the last three months. 8.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in TKR. Gordian Capital Singapore Pte Ltd purchased a new position in shares of Timken in the fourth quarter worth $25,000. Clearstead Advisors LLC raised its holdings in 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 purchasing an additional 172 shares in the last quarter. Eastern Bank bought a new position in Timken in the 4th quarter worth $27,000. V Square Quantitative Management LLC purchased a new position in shares of Timken during the fourth quarter valued at about $31,000. Finally, Kestra Investment Management LLC bought a new position in Timken in the second quarter worth about $42,000. 89.08% of the stock is owned by hedge funds and other institutional investors.

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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