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

Key Points

• Timken hit a new 52-week high of $111.56 (last trade $111.31) on Thursday with about 734,403 shares changing hands, and the stock was up roughly 4.1%.
• Several analysts raised price targets — including Citigroup to $125, Oppenheimer to $117 and Morgan Stanley to $119 — yet MarketBeat shows an average rating of "Hold" and an average price target of $105.86.
• Timken beat quarterly expectations (EPS $1.14 vs. $1.09; revenue $1.11B, +3.5% y/y) and set FY2026 guidance of $5.50–$6.00 EPS, roughly in line with the street's ~5.9 estimate.

Timken Company (The) (NYSE:TKR - Get Free Report)'s stock price hit a new 52-week high on Thursday . The company traded as high as $111.56 and last traded at $111.3110, with a volume of 734403 shares trading hands. The stock had previously closed at $106.53.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Citigroup increased their price target on shares of Timken from $115.00 to $125.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Oppenheimer increased their price target on shares of Timken from $108.00 to $117.00 and gave the company an "outperform" rating in a research report on Monday, April 20th. Weiss Ratings reissued a "hold (c+)" rating on shares of Timken in a research note on Monday, April 20th. Morgan Stanley increased their target price on Timken from $116.00 to $119.00 and gave the stock an "overweight" rating in a research note on Monday, March 30th. Finally, DA Davidson increased their target price on Timken from $86.00 to $108.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 10th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Timken currently has an average rating of "Hold" and an average price target of $105.86.

Timken Stock Up 4.1%

The company has a debt-to-equity ratio of 0.56, a current ratio of 2.82 and a quick ratio of 1.47. The company has a market capitalization of $7.74 billion, a price-to-earnings ratio of 26.99, a PEG ratio of 1.58 and a beta of 1.18. The firm has a 50-day moving average price of $103.56 and a two-hundred day moving average price of $92.39.

Timken (NYSE:TKR - Get Free Report) last announced its earnings results on Wednesday, February 4th. The industrial products company reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.05. Timken had a return on equity of 11.52% and a net margin of 6.29%.The business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter last year, the firm earned $1.16 EPS. Timken's revenue for the quarter was up 3.5% compared to the same quarter last year. Timken has set its FY 2026 guidance at 5.500-6.000 EPS. As a group, sell-side analysts anticipate that Timken Company will post 5.9 earnings per share for the current fiscal year.

Timken Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Tuesday, February 24th were paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Tuesday, February 24th. Timken's dividend payout ratio (DPR) is currently 34.06%.

Insider Buying and Selling at Timken

In other news, Director Richard G. Kyle sold 19,636 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $107.99, for a total transaction of $2,120,491.64. Following the completion of the transaction, the director directly owned 243,636 shares of the company's stock, valued at $26,310,251.64. This trade represents a 7.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 8.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Timken

Several hedge funds and other institutional investors have recently made changes to their positions in TKR. Royal Bank of Canada grew its stake in shares of Timken by 44.2% in the first quarter. Royal Bank of Canada now owns 90,550 shares of the industrial products company's stock valued at $6,508,000 after buying an additional 27,750 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Timken by 147.0% in the first quarter. Goldman Sachs Group Inc. now owns 355,765 shares of the industrial products company's stock valued at $25,569,000 after buying an additional 211,718 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Timken by 7.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,872 shares of the industrial products company's stock valued at $16,305,000 after buying an additional 16,000 shares in the last quarter. Prudential Financial Inc. grew its stake in shares of Timken by 18.7% in the second quarter. Prudential Financial Inc. now owns 6,815 shares of the industrial products company's stock valued at $494,000 after buying an additional 1,075 shares in the last quarter. Finally, Invesco Ltd. grew its stake in shares of Timken by 241.7% in the second quarter. Invesco Ltd. now owns 604,879 shares of the industrial products company's stock valued at $43,884,000 after buying an additional 427,879 shares in the last quarter. 89.08% of the stock is owned by institutional investors.

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.

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