Timken (NYSE:TKR) Sets New 12-Month Low – What’s Next?

The Timken Company (NYSE:TKR) shares hit a new 52-week low during mid-day trading on Monday . The company traded as low as $70.13 and last traded at $70.27, with a volume of 23500 shares trading hands. The stock had previously closed at $71.48.

Analyst Upgrades and Downgrades

TKR has been the topic of a number of research analyst reports. DA Davidson cut their price target on shares of Timken from $103.00 to $99.00 and set a “buy” rating on the stock in a report on Wednesday, November 6th. Morgan Stanley upgraded shares of Timken from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $82.00 to $93.00 in a research note on Tuesday, December 17th. Jefferies Financial Group raised shares of Timken from a “hold” rating to a “buy” rating and lifted their price target for the company from $80.00 to $95.00 in a research note on Friday, December 6th. Oppenheimer dropped their price objective on Timken from $102.00 to $97.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 6th. Finally, Citigroup raised Timken from a “neutral” rating to a “buy” rating and lifted their target price for the company from $85.00 to $90.00 in a research report on Monday, December 9th. Five investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $92.90.

Timken Stock Performance

The firm’s 50 day moving average is $77.22 and its 200 day moving average is $80.58. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.62 and a current ratio of 3.00. The stock has a market cap of $4.99 billion, a P/E ratio of 14.79, a price-to-earnings-growth ratio of 1.12 and a beta of 1.38.

Timken (NYSE:TKR) last issued its quarterly earnings results on Tuesday, November 5th. The industrial products company reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.15). Timken had a return on equity of 14.82% and a net margin of 7.41%. The business had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the previous year, the company posted $1.55 earnings per share. The business’s revenue for the quarter was down 1.4% on a year-over-year basis. Analysts anticipate that The Timken Company will post 5.61 EPS for the current year.

Timken Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Tuesday, November 19th were given a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 1.91%. The ex-dividend date of this dividend was Tuesday, November 19th. Timken’s payout ratio is currently 28.27%.

Insiders Place Their Bets

In other Timken news, Director Richard G. Kyle sold 30,000 shares of Timken stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $76.59, for a total transaction of $2,297,700.00. Following the completion of the sale, the director now owns 194,485 shares of the company’s stock, valued at approximately $14,895,606.15. The trade was a 13.36 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 8.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Coastline Trust Co acquired a new position in Timken in the 3rd quarter worth approximately $29,000. Livelsberger Financial Advisory purchased a new stake in shares of Timken in the 3rd quarter valued at $32,000. UMB Bank n.a. increased its stake in shares of Timken by 64.1% in the third quarter. UMB Bank n.a. now owns 430 shares of the industrial products company’s stock worth $36,000 after acquiring an additional 168 shares during the period. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of Timken during the second quarter worth $44,000. Finally, Brooklyn Investment Group acquired a new position in Timken during the third quarter valued at $74,000. 89.08% of the stock is currently 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.