Timken (NYSE:TKR) Shares Gap Down – Here’s Why

Timken Company (The) (NYSE:TKR) shares gapped down prior to trading on Tuesday . The stock had previously closed at $141.75, but opened at $131.33. Timken shares last traded at $130.3060, with a volume of 271,969 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have commented on TKR. Morgan Stanley set a $140.00 price target on shares of Timken in a research report on Thursday, May 21st. Citigroup lifted their price target on Timken from $140.00 to $160.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Timken in a research note on Friday, July 17th. KeyCorp boosted their price target on shares of Timken from $140.00 to $160.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Timken from $150.00 to $160.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $150.00.

Timken Trading Down 0.3%

The firm has a market capitalization of $9.15 billion, a P/E ratio of 35.67, a price-to-earnings-growth ratio of 1.57 and a beta of 1.21. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.55 and a current ratio of 3.10. The firm has a 50 day moving average price of $137.60 and a two-hundred day moving average price of $116.60.

Timken (NYSE:TKR) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.83 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.21. The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.23 billion. Timken had a return on equity of 12.63% and a net margin of 5.43%.Timken’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter last year, the company posted $1.12 EPS. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. On average, equities research analysts expect that Timken Company will post 6.19 EPS for the current fiscal year.

Timken Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, August 18th will be given a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, August 18th. Timken’s dividend payout ratio (DPR) is 39.02%.

Insider Activity

In other news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $116.51, for a total value of $1,747,650.00. Following the completion of the sale, the director owned 264,744 shares in the company, valued at $30,845,323.44. This represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Ajita G. Rajendra sold 8,450 shares of Timken stock in a transaction on Friday, June 5th. The shares were sold at an average price of $131.34, for a total value of $1,109,823.00. Following the transaction, the director owned 20,225 shares in the company, valued at $2,656,351.50. This represents a 29.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 69,079 shares of company stock worth $8,296,144 over the last 90 days. 8.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Timken

Several institutional investors and hedge funds have recently bought and sold shares of the business. Segall Bryant & Hamill LLC lifted its holdings in shares of Timken by 29.9% during the 1st quarter. Segall Bryant & Hamill LLC now owns 451,516 shares of the industrial products company’s stock valued at $45,409,000 after buying an additional 103,904 shares during the last quarter. Peregrine Investment Management Inc. bought a new stake in Timken during the first quarter valued at about $7,040,000. Wealth High Governance Capital Ltda acquired a new stake in Timken in the 4th quarter valued at approximately $16,429,000. Deprince Race & Zollo Inc. grew its stake in shares of Timken by 90.4% in the fourth quarter. Deprince Race & Zollo Inc. now owns 573,069 shares of the industrial products company’s stock worth $48,212,000 after acquiring an additional 272,135 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd boosted its holdings in Timken by 247.3% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 51,195 shares of the industrial products company’s stock valued at $5,149,000 after purchasing an additional 36,455 shares during the period. Hedge funds and other institutional investors own 89.08% of the company’s stock.

Timken Company Profile

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.