Timken (NYSE:TKR) Hits New 1-Year High – Should You Buy?

Timken Company (The) (NYSE:TKR) reached a new 52-week high on Tuesday . The company traded as high as $144.25 and last traded at $141.88, with a volume of 1004120 shares trading hands. The stock had previously closed at $142.36.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TKR. Weiss Ratings reissued a “hold (c+)” rating on shares of Timken in a research report on Monday, April 20th. Citigroup lifted their price objective on Timken from $125.00 to $140.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Morgan Stanley set a $140.00 target price on Timken in a report on Thursday, May 21st. Wall Street Zen upgraded Timken from a “hold” rating to a “buy” rating in a research report on Sunday, March 1st. Finally, Evercore reaffirmed an “outperform” rating and issued a $158.00 price target on shares of Timken in a research note on Monday, May 11th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $141.62.

Timken Stock Down 0.3%

The firm has a 50 day simple moving average of $120.82 and a two-hundred day simple moving average of $104.87. The company has a quick ratio of 1.55, a current ratio of 2.88 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $9.86 billion, a P/E ratio of 32.25, a PEG ratio of 1.70 and a beta of 1.21.

Timken (NYSE:TKR) last issued its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.50 by $0.17. Timken had a return on equity of 11.84% and a net margin of 6.60%.The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the business posted $1.40 EPS. The company’s revenue was up 8.0% compared to the same quarter last year. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, equities research analysts expect that Timken Company will post 6.14 earnings per share for the current year.

Timken Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were given a $0.36 dividend. This is a boost from Timken’s previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Tuesday, May 19th. Timken’s dividend payout ratio (DPR) is presently 32.73%.

Insiders Place Their Bets

In other news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $116.51, for a total value of $1,747,650.00. Following the completion of the transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard G. Kyle sold 37,181 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.34, for a total transaction of $4,362,818.54. Following the completion of the sale, the director owned 206,455 shares in the company, valued at approximately $24,225,429.70. The trade was a 15.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 69,079 shares of company stock valued at $8,296,144. 8.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Timken

Hedge funds and other institutional investors have recently modified their holdings of the stock. Gordian Capital Singapore Pte Ltd bought a new position in shares of Timken in the 4th quarter valued at $25,000. Clearstead Advisors LLC increased its holdings in Timken by 130.3% in the 4th quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company’s stock worth $26,000 after purchasing an additional 172 shares in the last quarter. Eastern Bank acquired a new position in Timken in the 4th quarter worth about $27,000. V Square Quantitative Management LLC bought a new position in Timken in the fourth quarter valued at about $31,000. Finally, Kestra Investment Management LLC bought a new position in Timken in the second quarter valued at about $42,000. Institutional investors own 89.08% of the company’s stock.

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.