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

Key Points

• Timken has a consensus analyst rating of “Moderate Buy”, with six buy ratings and three hold ratings among nine covering firms. The average 12-month price target is about $139.13.
• The company reported better-than-expected quarterly earnings, posting $1.67 EPS versus $1.50 expected, alongside revenue of $1.23 billion, up 8% year over year. Timken also raised its full-year guidance range to 5.75–6.25 EPS.
• Timken recently increased its quarterly dividend to $0.36 per share from $0.35, implying a $1.44 annualized payout and a 1.1% yield. Insider selling was also notable, with directors selling shares in recent weeks.

Timken Company (The) (NYSE:TKR - Get Free Report) has earned an average recommendation of "Moderate Buy" from the nine research firms that are currently covering the stock, Marketbeat.com reports. Three research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $139.1250.

Several research firms have weighed in on TKR. The Goldman Sachs Group set a $128.00 target price on shares of Timken in a research report on Friday, May 22nd. Wall Street Zen raised shares of Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. Evercore reissued an "outperform" rating and set a $158.00 target price on shares of Timken in a research report on Monday, May 11th. JPMorgan Chase & Co. raised shares of Timken from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $130.00 to $150.00 in a research report on Tuesday, May 26th. Finally, Oppenheimer boosted their target price on shares of Timken from $132.00 to $137.00 and gave the stock an "outperform" rating in a research report on Friday, May 22nd.

Insider Activity at Timken

In other Timken news, Director John M. Timken, Jr. sold 15,000 shares of Timken stock in a transaction that occurred on Friday, May 8th. The shares were 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 in the company, valued at approximately $30,845,323.44. The trade was a 5.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Richard G. Kyle sold 8,448 shares of Timken stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $127.35, for a total transaction of $1,075,852.80. Following the sale, the director owned 197,361 shares of the company's stock, valued at approximately $25,133,923.35. The trade was a 4.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 60,629 shares of company stock worth $7,186,321. 8.10% of the stock is owned by insiders.

Institutional Trading of Timken

Several institutional investors and hedge funds have recently bought and sold shares of the business. Fifth Third Wealth Advisors LLC lifted its stake in Timken by 4.3% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 2,537 shares of the industrial products company's stock valued at $255,000 after acquiring an additional 104 shares during the period. Parallel Advisors LLC lifted its stake in Timken by 4.1% during the 1st quarter. Parallel Advisors LLC now owns 2,970 shares of the industrial products company's stock valued at $299,000 after acquiring an additional 116 shares during the period. Uncommon Cents Investing LLC lifted its stake in Timken by 0.5% during the 4th quarter. Uncommon Cents Investing LLC now owns 27,465 shares of the industrial products company's stock valued at $2,311,000 after acquiring an additional 125 shares during the period. Parvin Asset Management LLC lifted its stake in Timken by 16.5% during the 1st quarter. Parvin Asset Management LLC now owns 920 shares of the industrial products company's stock valued at $93,000 after acquiring an additional 130 shares during the period. Finally, Quadrant Capital Group LLC lifted its stake in Timken by 3.2% during the 3rd quarter. Quadrant Capital Group LLC now owns 4,319 shares of the industrial products company's stock valued at $325,000 after acquiring an additional 132 shares during the period. 89.08% of the stock is currently owned by institutional investors and hedge funds.

Timken Stock Up 4.2%

Shares of Timken stock opened at $131.84 on Wednesday. The firm's 50 day moving average price is $109.79 and its 200-day moving average price is $98.68. 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 has a 52-week low of $68.59 and a 52-week high of $132.38. The company has a market cap of $9.16 billion, a P/E ratio of 29.96, a PEG ratio of 1.52 and a beta of 1.21.

Timken (NYSE:TKR - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the previous year, the firm earned $1.40 EPS. The company's quarterly revenue 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, sell-side analysts predict that Timken will post 6.13 EPS for the current fiscal year.

Timken Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.36 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 annualized dividend and a yield of 1.1%. This is a boost 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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