Timken (NYSE:TKR) Hits New 12-Month Low – Here’s What Happened

The Timken Company (NYSE:TKR)’s share price hit a new 52-week low during trading on Wednesday . The company traded as low as $71.70 and last traded at $72.05, with a volume of 305511 shares traded. The stock had previously closed at $74.75.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on TKR shares. Citigroup raised shares of Timken from a “neutral” rating to a “buy” rating and increased their price target for the company from $85.00 to $90.00 in a research report on Monday, December 9th. DA Davidson dropped their target price on 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 Timken from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $82.00 to $93.00 in a research note on Tuesday. Jefferies Financial Group raised Timken from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $80.00 to $95.00 in a report on Friday, December 6th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of Timken in a report on Friday, November 22nd. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $92.90.

Timken Stock Performance

The company has a market cap of $5.02 billion, a PE ratio of 14.89, a PEG ratio of 1.12 and a beta of 1.38. The company has a current ratio of 3.00, a quick ratio of 1.62 and a debt-to-equity ratio of 0.71. The business’s 50 day moving average is $78.91 and its two-hundred day moving average is $81.14.

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

Timken Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Shareholders of record on Tuesday, November 19th were paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 1.90%. The ex-dividend date was Tuesday, November 19th. Timken’s payout ratio is 28.27%.

Insider Activity

In related news, Director Richard G. Kyle sold 30,000 shares of the company’s stock in a transaction on 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 directly owns 194,485 shares in the company, valued at $14,895,606.15. This represents a 13.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On Timken

Several hedge funds and other institutional investors have recently modified their holdings of the stock. American Century Companies Inc. increased its stake in shares of Timken by 4.8% in the second 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 period. Thrivent Financial for Lutherans lifted its holdings in shares of Timken by 4.2% in the 3rd quarter. Thrivent Financial for Lutherans now owns 2,679,790 shares of the industrial products company’s stock valued at $225,880,000 after buying an additional 107,350 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Timken by 4.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,104,910 shares of the industrial products company’s stock worth $168,667,000 after buying an additional 97,550 shares during the last quarter. State Street Corp grew its holdings in Timken by 3.5% during the third quarter. State Street Corp now owns 1,953,838 shares of the industrial products company’s stock worth $164,689,000 after acquiring an additional 66,208 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC lifted its holdings in Timken by 34.3% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 1,700,979 shares of the industrial products company’s stock valued at $143,376,000 after acquiring an additional 434,800 shares during the period. 89.08% of the stock is owned by hedge funds and other institutional investors.

About Timken

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.