Timken (NYSE:TKR) Reaches New 52-Week High After Analyst Upgrade

Key Points

• Timken shares hit a new 52-week high after JPMorgan Chase upgraded the stock from neutral to overweight and assigned a $150 price target. The stock traded as high as $123.95 intraday.
• Several other analysts have turned more constructive on Timken, with recent price-target boosts from Oppenheimer, KeyCorp, Evercore, and Morgan Stanley. MarketBeat says the stock now carries a consensus rating of Moderate Buy with an average target price of $139.13.
• Timken also reported better-than-expected quarterly results, including EPS of $1.67 versus $1.50 expected and revenue of $1.23 billion versus $1.17 billion expected. The company increased its quarterly dividend to $0.36 per share from $0.35.

Timken Company (The) (NYSE:TKR - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. JPMorgan Chase & Co. now has a $150.00 price target on the stock. Timken traded as high as $123.95 and last traded at $122.60, with a volume of 44572 shares changing hands. The stock had previously closed at $119.95.

Other equities analysts have also recently issued reports about the stock. Oppenheimer upped their price objective on shares of Timken from $132.00 to $137.00 and gave the stock an "outperform" rating in a research report on Friday. Wall Street Zen upgraded shares of Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. KeyCorp raised their target price on shares of Timken from $130.00 to $140.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Evercore reiterated an "outperform" rating and set a $158.00 price target on shares of Timken in a report on Monday, May 11th. Finally, Morgan Stanley set a $140.00 price objective on shares of Timken in a report on Thursday. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $139.13.

Insider Activity at Timken

In other Timken news, Director Richard G. Kyle sold 37,181 shares of the firm's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $117.34, for a total value of $4,362,818.54. Following the sale, the director directly owned 206,455 shares in the company, valued at $24,225,429.70. This trade represents a 15.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John M. Timken, Jr. sold 15,000 shares of the business'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 value 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. The trade was a 5.36% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 8.10% of the company's stock.

Institutional Investors Weigh In On Timken

Several large investors have recently modified their holdings of the company. Royal Bank of Canada increased its position in Timken by 44.2% in the 1st quarter. Royal Bank of Canada now owns 90,550 shares of the industrial products company's stock valued at $6,508,000 after acquiring an additional 27,750 shares during the period. Goldman Sachs Group Inc. increased its holdings 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 purchasing an additional 211,718 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Timken by 7.6% during 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 worth $16,305,000 after purchasing an additional 16,000 shares during the last quarter. Prudential Financial Inc. lifted its stake in shares of Timken by 18.7% in the 2nd quarter. Prudential Financial Inc. now owns 6,815 shares of the industrial products company's stock worth $494,000 after acquiring an additional 1,075 shares during the period. Finally, Invesco Ltd. lifted its stake in shares of Timken by 241.7% in the 2nd quarter. Invesco Ltd. now owns 604,879 shares of the industrial products company's stock worth $43,884,000 after acquiring an additional 427,879 shares during the period. 89.08% of the stock is owned by institutional investors and hedge funds.

Timken Price Performance

The stock has a fifty day simple moving average of $106.88 and a two-hundred day simple moving average of $96.97. The company has a market cap of $8.52 billion, a PE ratio of 27.86, a price-to-earnings-growth ratio of 1.63 and a beta of 1.18. The company has a current ratio of 2.88, a quick ratio of 1.55 and a debt-to-equity ratio of 0.60.

Timken (NYSE:TKR - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.17. The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. Timken had a net margin of 6.60% and a return on equity of 11.84%. The firm's revenue was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.40 earnings per share. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, equities analysts predict that Timken Company will post 6.05 EPS for the current fiscal year.

Timken Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th will be given a dividend of $0.36 per share. The ex-dividend date is Tuesday, May 19th. This is an increase from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a yield of 1.2%. 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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