Timken (NYSE:TKR) Shares Gap Down Following Weak Earnings

The Timken Company (NYSE:TKR) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $83.37, but opened at $78.00. Timken shares last traded at $79.95, with a volume of 66,802 shares changing hands.

The industrial products company reported $1.23 earnings per share for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.15). Timken had a return on equity of 16.36% and a net margin of 7.52%. The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the prior year, the firm earned $1.55 EPS. The firm’s revenue was down 1.4% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Citigroup started coverage on shares of Timken in a research note on Monday, October 14th. They set a “neutral” rating and a $90.00 target price for the company. DA Davidson cut their price objective on shares of Timken from $103.00 to $99.00 and set a “buy” rating for the company in a research report on Wednesday. Oppenheimer reduced their target price on shares of Timken from $102.00 to $97.00 and set an “outperform” rating for the company in a research note on Wednesday. KeyCorp lowered their price target on Timken from $104.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Evercore ISI reduced their price objective on Timken from $94.00 to $87.00 and set an “in-line” rating for the company in a research report on Monday, August 19th. Eight investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Timken currently has a consensus rating of “Hold” and a consensus price target of $89.60.

Institutional Investors Weigh In On Timken

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in Timken by 5.6% during the first quarter. Vanguard Group Inc. now owns 6,515,972 shares of the industrial products company’s stock worth $569,691,000 after buying an additional 347,794 shares during the last quarter. American Century Companies Inc. grew its position in Timken by 4.8% during the 2nd quarter. American Century Companies Inc. now owns 2,817,294 shares of the industrial products company’s stock worth $225,750,000 after acquiring an additional 128,791 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Timken by 4.9% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,104,910 shares of the industrial products company’s stock valued at $168,667,000 after purchasing an additional 97,550 shares in the last quarter. Earnest Partners LLC increased its holdings in Timken by 2.1% during the 2nd quarter. Earnest Partners LLC now owns 1,322,312 shares of the industrial products company’s stock valued at $105,957,000 after purchasing an additional 26,671 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Timken by 0.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 529,161 shares of the industrial products company’s stock valued at $42,402,000 after purchasing an additional 3,462 shares during the last quarter. Institutional investors own 89.08% of the company’s stock.

Timken Trading Up 9.0 %

The business has a 50 day simple moving average of $82.70 and a 200 day simple moving average of $83.87. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.95 and a quick ratio of 1.64. The company has a market cap of $5.55 billion, a price-to-earnings ratio of 16.46, a price-to-earnings-growth ratio of 1.90 and a beta of 1.43.

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.