Timken (NYSE:TKR) Hits New 52-Week High on Earnings Beat

Key Points

• 52-week high reached after Timken beat expectations—Q earnings were $1.67 EPS vs. $1.50 expected and revenue was $1.23B vs. $1.17B, and management set FY2026 guidance of 5.750–6.250 EPS.
• Dividend and ownership: Timken paid a $0.35 quarterly dividend ($1.40 annualized, 1.2% yield; 34.06% payout ratio); a director sold 19,636 shares, insiders own 8.10% and institutional investors own 89.08% of the stock.
• Analyst views and valuation: Consensus rating is "Hold" with an average target of $105.86 despite several recent target upgrades (Citigroup $125, Oppenheimer $117); market cap $8.36B and P/E of 29.1 (50-/200-day SMAs $103.66 / $93.04).

Timken Company (The) (NYSE:TKR - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $120.96 and last traded at $119.3020, with a volume of 230175 shares traded. The stock had previously closed at $109.63.

The industrial products company reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.50 by $0.17. Timken had a return on equity of 11.52% and a net margin of 6.29%.The business had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same quarter last year, the business posted $1.40 earnings per share. The company's quarterly revenue was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS.

Timken Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Tuesday, February 24th were issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Tuesday, February 24th. Timken's dividend payout ratio is currently 34.06%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on TKR. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Timken in a report on Monday, April 20th. Citigroup upped their target price on Timken from $115.00 to $125.00 and gave the company a "buy" rating in a report on Monday, April 13th. DA Davidson upped their target price on Timken from $86.00 to $108.00 and gave the company a "neutral" rating in a report on Tuesday, February 10th. Oppenheimer upped their target price on Timken from $108.00 to $117.00 and gave the company an "outperform" rating in a report on Monday, April 20th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $100.00 target price on shares of Timken in a report on Thursday, March 26th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Timken has a consensus rating of "Hold" and an average target price of $105.86.

Insiders Place Their Bets

In other Timken news, Director Richard G. Kyle sold 19,636 shares of the company's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $107.99, for a total value of $2,120,491.64. Following the transaction, the director directly owned 243,636 shares of the company's stock, valued at $26,310,251.64. This represents a 7.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 8.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP increased its holdings in shares of Timken by 12.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,672,110 shares of the industrial products company's stock valued at $224,813,000 after acquiring an additional 297,047 shares during the last quarter. UBS Group AG grew its holdings in Timken by 734.7% in the 3rd quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company's stock valued at $171,880,000 after buying an additional 2,012,352 shares during the last quarter. Victory Capital Management Inc. grew its holdings in Timken by 15.5% in the 4th quarter. Victory Capital Management Inc. now owns 1,843,042 shares of the industrial products company's stock valued at $155,055,000 after buying an additional 247,000 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in Timken by 34.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 1,493,167 shares of the industrial products company's stock valued at $112,256,000 after buying an additional 385,389 shares during the last quarter. Finally, Cooke & Bieler LP grew its holdings in Timken by 28.6% in the 3rd quarter. Cooke & Bieler LP now owns 1,423,361 shares of the industrial products company's stock valued at $107,008,000 after buying an additional 316,380 shares during the last quarter. Institutional investors and hedge funds own 89.08% of the company's stock.

Timken Price Performance

The stock has a market cap of $8.36 billion, a price-to-earnings ratio of 29.10, a price-to-earnings-growth ratio of 1.56 and a beta of 1.18. The stock has a fifty day simple moving average of $103.66 and a 200-day simple moving average of $93.04. The company has a current ratio of 2.82, a quick ratio of 1.47 and a debt-to-equity ratio of 0.56.

About Timken

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.