Timken Company (The) (NYSE:TKR) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts are generally positive on Timken, with nine brokerages giving the stock an average rating of “Moderate Buy.” Six analysts rate it a buy, and the average 1-year price target is $150.
• Recent earnings topped expectations, as Timken reported $1.67 EPS on $1.23 billion in revenue, both above consensus estimates. The company also raised its quarterly dividend to $0.36 per share, up from $0.35.
• Insider selling and strong institutional ownership stand out, with insiders selling 69,079 shares in the last quarter while institutional investors and hedge funds own 89.08% of the stock. The shares recently traded at $141.63, near their 52-week high of $146.37.

Timken Company (The) (NYSE:TKR - Get Free Report) has been given an average rating of "Moderate Buy" by the nine brokerages that are covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $150.00.

A number of equities research analysts recently issued reports on TKR shares. KeyCorp boosted their target price on shares of Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Oppenheimer lifted their price target on shares of Timken from $147.00 to $150.00 and gave the company an "outperform" rating in a report on Tuesday. Citigroup boosted their price objective on shares of Timken from $140.00 to $160.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Morgan Stanley set a $140.00 price objective on Timken in a report on Thursday, May 21st. Finally, DA Davidson assumed coverage on Timken in a research report on Tuesday, June 16th. They set a "neutral" rating and a $130.00 price target for the company.

Insider Buying and Selling

In other Timken news, Director Ajita G. Rajendra sold 8,450 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the completion of the sale, the director directly owned 20,225 shares in the company, valued at $2,656,351.50. The trade was a 29.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction 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. The trade was a 5.36% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 69,079 shares of company stock valued at $8,296,144. 8.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Timken

Several large investors have recently added to or reduced their stakes in TKR. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Timken in the fourth quarter worth about $25,000. Clearstead Advisors LLC raised its holdings in shares of Timken by 130.3% during the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock valued at $26,000 after buying an additional 172 shares during the period. Eastern Bank acquired a new position in Timken during the 4th quarter worth approximately $27,000. V Square Quantitative Management LLC acquired a new position in Timken during the 4th quarter worth approximately $31,000. Finally, Elevation Wealth Partners LLC boosted its holdings in Timken by 420.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 260 shares of the industrial products company's stock worth $38,000 after acquiring an additional 210 shares during the period. 89.08% of the stock is currently owned by institutional investors and hedge funds.

Timken Price Performance

Shares of NYSE:TKR opened at $141.63 on Thursday. The company has a market cap of $9.84 billion, a P/E ratio of 32.19, a P/E/G ratio of 1.66 and a beta of 1.20. The business has a fifty day simple moving average of $133.79 and a 200-day simple moving average of $113.28. Timken has a 52 week low of $70.57 and a 52 week high of $146.37. The company has a quick ratio of 1.55, a current ratio of 2.88 and a debt-to-equity ratio of 0.60.

Timken (NYSE:TKR - Get Free Report) last released 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. Timken had a return on equity of 11.84% and a net margin of 6.60%.The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the prior year, the business posted $1.40 earnings per share. 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. Equities research analysts forecast that Timken will post 6.16 EPS for the current year.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th were issued 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 was Tuesday, May 19th. This is an increase from Timken's previous quarterly dividend of $0.35. Timken's dividend payout ratio (DPR) 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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