Zacks Investment Research Downgrades Timken (TKR) to Hold
Zacks Investment Research downgraded shares of Timken (NYSE:TKR) from a buy rating to a hold rating in a report issued on Friday morning.
According to Zacks, “The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, belts, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company’s growing product and services portfolio features many strong industrial brands including Timken, Fafnir, Philadelphia Gear, Carlisle, Drives and Interlube. “
Several other research analysts have also issued reports on the stock. Bank of America upgraded shares of Timken from an underperform rating to a neutral rating and set a $56.00 price target for the company in a report on Wednesday, August 8th. Goldman Sachs Group started coverage on shares of Timken in a report on Tuesday, October 2nd. They set a neutral rating and a $56.00 price target for the company. ValuEngine upgraded shares of Timken from a strong sell rating to a sell rating in a report on Saturday, July 28th. Finally, KeyCorp raised their price target on shares of Timken from $54.00 to $60.00 and gave the stock an overweight rating in a report on Wednesday, August 1st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the stock. Timken presently has an average rating of Hold and a consensus target price of $56.20.
Timken (NYSE:TKR) last released its quarterly earnings results on Monday, October 29th. The industrial products company reported $1.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.01). Timken had a return on equity of 19.58% and a net margin of 7.89%. The firm had revenue of $881.30 million for the quarter, compared to the consensus estimate of $912.58 million. During the same quarter in the previous year, the business posted $0.71 EPS. The firm’s revenue for the quarter was up 14.2% compared to the same quarter last year. Analysts forecast that Timken will post 4.18 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 4th. Stockholders of record on Tuesday, November 20th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Monday, November 19th. This represents a $1.12 annualized dividend and a dividend yield of 2.82%. Timken’s dividend payout ratio is currently 42.59%.
In related news, Director Frank C. Sullivan acquired 5,000 shares of the stock in a transaction dated Monday, November 5th. The stock was bought at an average price of $41.05 per share, for a total transaction of $205,250.00. Following the purchase, the director now directly owns 51,932 shares of the company’s stock, valued at approximately $2,131,808.60. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 11.15% of the company’s stock.
Several large investors have recently added to or reduced their stakes in TKR. LPL Financial LLC increased its stake in shares of Timken by 79.4% in the 1st quarter. LPL Financial LLC now owns 8,522 shares of the industrial products company’s stock valued at $389,000 after acquiring an additional 3,773 shares in the last quarter. Royal Bank of Canada increased its stake in shares of Timken by 41.7% in the 1st quarter. Royal Bank of Canada now owns 74,917 shares of the industrial products company’s stock valued at $3,416,000 after acquiring an additional 22,043 shares in the last quarter. Principal Financial Group Inc. increased its stake in shares of Timken by 2.9% in the 1st quarter. Principal Financial Group Inc. now owns 299,769 shares of the industrial products company’s stock valued at $13,669,000 after acquiring an additional 8,575 shares in the last quarter. State of Alaska Department of Revenue increased its stake in shares of Timken by 40.0% in the 2nd quarter. State of Alaska Department of Revenue now owns 7,600 shares of the industrial products company’s stock valued at $330,000 after acquiring an additional 2,170 shares in the last quarter. Finally, Bank of Montreal Can bought a new stake in shares of Timken in the 2nd quarter valued at $123,000. Institutional investors own 78.55% of the company’s stock.
Timken Company Profile
The Timken Company engineers, manufactures, and markets bearings, transmissions, gearboxes, belts, chains, lubrication systems, couplings, industrial clutches and brakes, and related products worldwide. It operates through two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices, and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches and brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives.
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