Timken (NYSE:TKR) Hits New 12-Month High - Still a Buy?

Key Points

• Timken shares hit a new 52-week high of $143.45 intraday, continuing a strong run above both its 50-day and 200-day moving averages.
• Several analysts turned more bullish on the stock, including a JPMorgan upgrade to Overweight and higher price targets from KeyCorp, Evercore, and Oppenheimer. The consensus rating is now Moderate Buy with an average target price of $141.63.
• Timken reported solid quarterly results, beating EPS and revenue estimates, and recently raised its dividend from $0.35 to $0.36 per share. However, some insiders sold shares over the past few months while institutional ownership remains high at 89.08%.

Timken Company (The) (NYSE:TKR - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $143.45 and last traded at $143.1790, with a volume of 122324 shares changing hands. The stock had previously closed at $140.28.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TKR. JPMorgan Chase & Co. upgraded shares of Timken from a "neutral" rating to an "overweight" rating and increased their target price for the company from $130.00 to $150.00 in a research report on Tuesday, May 26th. KeyCorp raised their price objective on shares of Timken from $130.00 to $140.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Evercore restated an "outperform" rating and set a $158.00 price objective on shares of Timken in a research report on Monday, May 11th. Wall Street Zen upgraded shares of Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. Finally, Oppenheimer raised their price objective on shares of Timken from $137.00 to $147.00 and gave the company an "outperform" rating in a research report on Friday, June 5th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Timken currently has a consensus rating of "Moderate Buy" and an average target price of $141.63.

Timken Stock Performance

The firm's fifty day simple moving average is $117.75 and its 200 day simple moving average is $103.16. The company has a market capitalization of $9.92 billion, a price-to-earnings ratio of 32.41, a PEG ratio of 1.67 and a beta of 1.21. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55.

Timken (NYSE:TKR - Get Free Report) last announced its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.50 by $0.17. Timken had a net margin of 6.60% and a return on equity of 11.84%. The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same period last year, the company posted $1.40 earnings per share. The business's revenue for the quarter was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, sell-side analysts forecast that Timken Company will post 6.13 EPS for the current year.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were issued a $0.36 dividend. The ex-dividend date 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 dividend payout ratio is 32.73%.

Insider Buying and Selling

In related news, Director Richard G. Kyle sold 8,448 shares of the firm's 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 completion of the sale, the director directly owned 197,361 shares in the company, valued at approximately $25,133,923.35. This trade represents a 4.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John M. Timken, Jr. sold 15,000 shares of the firm'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 sale, the director owned 264,744 shares of the company's stock, valued at approximately $30,845,323.44. This represents a 5.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 69,079 shares of company stock worth $8,296,144. 8.10% of the stock is owned by company insiders.

Institutional Trading of Timken

Several institutional investors have recently made changes to their positions in TKR. Dimensional Fund Advisors LP raised its position in Timken by 8.0% during the first quarter. Dimensional Fund Advisors LP now owns 2,886,955 shares of the industrial products company's stock valued at $290,320,000 after acquiring an additional 214,845 shares in the last quarter. UBS Group AG raised its position in Timken by 734.7% during the third quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company's stock valued at $171,880,000 after acquiring an additional 2,012,352 shares in the last quarter. Victory Capital Management Inc. raised its position in Timken by 15.5% during the fourth quarter. Victory Capital Management Inc. now owns 1,843,042 shares of the industrial products company's stock valued at $155,055,000 after acquiring an additional 247,000 shares in the last quarter. Invesco Ltd. raised its position in Timken by 1.0% during the fourth quarter. Invesco Ltd. now owns 1,371,613 shares of the industrial products company's stock valued at $115,394,000 after acquiring an additional 13,459 shares in the last quarter. Finally, Brown Advisory Inc. raised its position in Timken by 5.6% during the fourth quarter. Brown Advisory Inc. now owns 1,273,668 shares of the industrial products company's stock valued at $107,154,000 after acquiring an additional 67,573 shares in the last quarter. 89.08% of the stock is currently owned by institutional investors and hedge funds.

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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