Timken (NYSE:TKR) Sets New 1-Year High – Here’s Why

Shares of Timken Company (The) (NYSE:TKR) reached a new 52-week high during trading on Thursday . The company traded as high as $139.77 and last traded at $132.6570, with a volume of 1134672 shares trading hands. The stock had previously closed at $137.09.

Wall Street Analysts Forecast Growth

TKR has been the subject of several research analyst reports. DA Davidson lifted their target price on shares of Timken from $117.00 to $120.00 and gave the company a “neutral” rating in a research report on Thursday, May 21st. Morgan Stanley set a $140.00 target price on shares of Timken in a research report on Thursday, May 21st. Citigroup lifted their target price on shares of Timken from $125.00 to $140.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. JPMorgan Chase & Co. upgraded shares of Timken from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $130.00 to $150.00 in a research report on Tuesday, May 26th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Timken in a research report on Monday, April 20th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Timken presently has an average rating of “Moderate Buy” and a consensus price target of $140.38.

Timken Trading Down 3.2%

The firm has a market capitalization of $9.22 billion, a P/E ratio of 30.15, a price-to-earnings-growth ratio of 1.64 and a beta of 1.21. 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 firm’s 50-day simple moving average is $114.67 and its 200-day simple moving average is $101.51.

Timken (NYSE:TKR) last announced its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.17. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.17 billion. Timken had a net margin of 6.60% and a return on equity of 11.84%. Timken’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.40 earnings per share. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. Analysts anticipate that Timken Company will post 6.13 EPS for the current year.

Timken Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Tuesday, May 19th. This is a positive change from Timken’s previous quarterly dividend of $0.35. Timken’s dividend payout ratio (DPR) is presently 32.73%.

Insider Transactions at Timken

In other news, Director Richard G. Kyle sold 8,448 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $127.35, for a total value of $1,075,852.80. Following the completion of the sale, the director directly owned 197,361 shares in the company, valued at approximately $25,133,923.35. The trade was a 4.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Ajita G. Rajendra sold 8,450 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the completion of the sale, the director owned 20,225 shares of the company’s stock, valued at approximately $2,656,351.50. The trade was a 29.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 69,079 shares of company stock worth $8,296,144. 8.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Timken

Hedge funds have recently made changes to their positions in the business. Gordian Capital Singapore Pte Ltd bought a new stake in shares of Timken in the 4th quarter worth approximately $25,000. Clearstead Advisors LLC lifted its holdings in shares of 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 acquiring an additional 172 shares during the last quarter. Eastern Bank bought a new stake in shares of Timken in the 4th quarter worth approximately $27,000. V Square Quantitative Management LLC bought a new stake in shares of Timken in the 4th quarter worth approximately $31,000. Finally, Kestra Investment Management LLC bought a new stake in shares of Timken in the 2nd quarter worth approximately $42,000. 89.08% of the stock is currently 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.