The Timken Company (NYSE:TKR) Receives $81.91 Consensus PT from Analysts

The Timken Company (NYSE:TKR) has received a consensus recommendation of “Hold” from the eleven brokerages that are covering the company, MarketBeat reports. Seven investment analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $79.20.

A number of equities research analysts have weighed in on TKR shares. Jefferies Financial Group reiterated a “hold” rating and set a $70.00 target price (down from $90.00) on shares of Timken in a research note on Wednesday, April 2nd. Oppenheimer lowered their target price on Timken from $90.00 to $88.00 and set an “outperform” rating on the stock in a report on Thursday. Morgan Stanley cut their price target on Timken from $94.00 to $88.00 and set an “overweight” rating for the company in a research note on Wednesday, April 16th. Bank of America upgraded shares of Timken from an “underperform” rating to a “neutral” rating and increased their price objective for the stock from $73.00 to $78.00 in a research note on Tuesday, February 4th. Finally, Citigroup cut their target price on shares of Timken from $95.00 to $70.00 and set a “buy” rating for the company in a research report on Tuesday, April 8th.

Timken Price Performance

Shares of NYSE TKR opened at $66.58 on Tuesday. The company has a 50 day moving average of $68.90 and a 200 day moving average of $74.64. The company has a quick ratio of 1.61, a current ratio of 3.07 and a debt-to-equity ratio of 0.69. Timken has a twelve month low of $56.20 and a twelve month high of $93.66. The firm has a market cap of $4.66 billion, a P/E ratio of 13.34, a PEG ratio of 1.51 and a beta of 1.28.

Timken (NYSE:TKR) last posted its earnings results on Wednesday, April 30th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.43 by ($0.03). Timken had a net margin of 7.71% and a return on equity of 13.93%. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same quarter in the prior year, the company posted $1.77 EPS. Timken’s revenue was down 4.2% on a year-over-year basis. As a group, research analysts expect that Timken will post 5.62 EPS for the current fiscal year.

Timken Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 23rd. Shareholders of record on Tuesday, May 13th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 2.10%. This is an increase from Timken’s previous quarterly dividend of $0.34. Timken’s payout ratio is currently 27.25%.

Insider Transactions at Timken

In related news, CFO Philip D. Fracassa sold 5,000 shares of the stock in a transaction dated Friday, February 7th. The stock was sold at an average price of $81.50, for a total transaction of $407,500.00. Following the completion of the sale, the chief financial officer now owns 90,541 shares in the company, valued at approximately $7,379,091.50. This trade represents a 5.23 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 8.37% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in TKR. Cooke & Bieler LP bought a new stake in shares of Timken during the first quarter valued at approximately $18,041,000. Verdence Capital Advisors LLC grew its stake in Timken by 31.2% during the first quarter. Verdence Capital Advisors LLC now owns 5,943 shares of the industrial products company’s stock valued at $427,000 after acquiring an additional 1,413 shares in the last quarter. Victory Capital Management Inc. increased its holdings in Timken by 108.8% in the 1st quarter. Victory Capital Management Inc. now owns 1,841,828 shares of the industrial products company’s stock valued at $132,372,000 after acquiring an additional 959,672 shares during the last quarter. Louisiana State Employees Retirement System lifted its stake in Timken by 1.1% in the 1st quarter. Louisiana State Employees Retirement System now owns 17,900 shares of the industrial products company’s stock worth $1,286,000 after purchasing an additional 200 shares in the last quarter. Finally, New York State Common Retirement Fund boosted its holdings in shares of Timken by 108.1% during the 1st quarter. New York State Common Retirement Fund now owns 424,121 shares of the industrial products company’s stock valued at $30,482,000 after purchasing an additional 220,294 shares during the last quarter. 89.08% of the stock is owned by hedge funds and other institutional investors.

Timken Company Profile

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.