Timken (NYSE:TKR) Sets New 52-Week High – Still a Buy?

Timken Company (The) (NYSE:TKR) shares hit a new 52-week high during trading on Tuesday . The company traded as high as $145.72 and last traded at $145.7350, with a volume of 112315 shares trading hands. The stock had previously closed at $143.50.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. JPMorgan Chase & Co. upgraded Timken from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $130.00 to $150.00 in a report on Tuesday, May 26th. KeyCorp lifted their price target on shares of Timken from $130.00 to $140.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Citigroup increased their price objective on shares of Timken from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Weiss Ratings reissued a “hold (c+)” rating on shares of Timken in a research report on Monday, April 20th. Finally, Evercore reaffirmed an “outperform” rating and set a $158.00 price target on shares of Timken in a research report on Monday, May 11th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $141.62.

Timken Trading Up 1.6%

The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55. The business’s fifty day simple moving average is $124.35 and its 200 day simple moving average is $106.90. The stock has a market cap of $10.13 billion, a price-to-earnings ratio of 33.13, a P/E/G ratio of 1.69 and a beta of 1.21.

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

Timken Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Tuesday, May 19th were issued a $0.36 dividend. This is a boost from Timken’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.0%. Timken’s dividend payout ratio is 32.73%.

Insider Activity at Timken

In related news, Director John M. Timken, Jr. sold 15,000 shares of Timken 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 sale, the director directly owned 264,744 shares in the company, valued at $30,845,323.44. This trade represents a 5.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Ajita G. Rajendra sold 8,450 shares of the business’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the transaction, the director directly owned 20,225 shares of the company’s stock, valued at $2,656,351.50. The trade was a 29.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 69,079 shares of company stock worth $8,296,144 in the last ninety days. 8.10% of the stock is owned by insiders.

Institutional Trading of Timken

Several hedge funds have recently added to or reduced their stakes in TKR. Fifth Third Wealth Advisors LLC grew its position in Timken by 4.3% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 2,537 shares of the industrial products company’s stock worth $255,000 after purchasing an additional 104 shares during the last quarter. Parallel Advisors LLC increased its stake in Timken by 4.1% during the first quarter. Parallel Advisors LLC now owns 2,970 shares of the industrial products company’s stock valued at $299,000 after acquiring an additional 116 shares during the period. Uncommon Cents Investing LLC raised its holdings in Timken by 0.5% in the 4th quarter. Uncommon Cents Investing LLC now owns 27,465 shares of the industrial products company’s stock valued at $2,311,000 after acquiring an additional 125 shares in the last quarter. Parvin Asset Management LLC lifted its position in shares of Timken by 16.5% in the 1st quarter. Parvin Asset Management LLC now owns 920 shares of the industrial products company’s stock worth $93,000 after acquiring an additional 130 shares during the period. Finally, Quadrant Capital Group LLC lifted its position in Timken by 3.2% in the third quarter. Quadrant Capital Group LLC now owns 4,319 shares of the industrial products company’s stock worth $325,000 after purchasing an additional 132 shares during the period. Institutional investors own 89.08% of the company’s stock.

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.