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

Timken Company (The) (NYSE:TKR)’s share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $144.25 and last traded at $141.88, with a volume of 1004120 shares. The stock had previously closed at $142.36.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Evercore reaffirmed an “outperform” rating and set a $158.00 target price on shares of Timken in a research report on Monday, May 11th. JPMorgan Chase & Co. upgraded shares of Timken from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $130.00 to $150.00 in a report on Tuesday, May 26th. DA Davidson initiated coverage on Timken in a research note on Tuesday, June 16th. They issued a “neutral” rating and a $130.00 price target for the company. Morgan Stanley set a $140.00 price objective on Timken in a report on Thursday, May 21st. Finally, Oppenheimer raised their price objective on shares of Timken from $137.00 to $147.00 and gave the company an “outperform” rating in a research report on Friday, June 5th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $141.62.

Timken Price Performance

The stock has a market cap of $9.59 billion, a price-to-earnings ratio of 31.37, a P/E/G ratio of 1.65 and a beta of 1.21. The stock’s 50 day simple moving average is $122.07 and its two-hundred day simple moving average is $105.65. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55.

Timken (NYSE:TKR) last posted 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 firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.17 billion. Timken had a net margin of 6.60% and a return on equity of 11.84%. The company’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.40 earnings per share. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. On average, analysts forecast that Timken Company will post 6.14 earnings per share for the current fiscal year.

Timken Increases Dividend

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

Insider Transactions at Timken

In related news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $116.51, for a total transaction 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 trade represents a 5.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard G. Kyle sold 8,448 shares of Timken stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $127.35, for a total transaction of $1,075,852.80. Following the transaction, the director directly owned 197,361 shares of the company’s stock, valued at $25,133,923.35. This represents a 4.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 69,079 shares of company stock valued at $8,296,144. 8.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. UBS Group AG increased its holdings in Timken by 734.7% during the 3rd quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company’s stock valued at $171,880,000 after purchasing an additional 2,012,352 shares in the last quarter. Invesco Ltd. boosted its stake in Timken by 124.5% in the third quarter. Invesco Ltd. now owns 1,358,154 shares of the industrial products company’s stock worth $102,106,000 after purchasing an additional 753,275 shares in the last quarter. Norges Bank acquired a new position in Timken in the fourth quarter worth $47,644,000. Alyeska Investment Group L.P. bought a new stake in shares of Timken during the fourth quarter worth $44,421,000. Finally, Balyasny Asset Management L.P. grew its holdings in shares of Timken by 235.2% during the fourth quarter. Balyasny Asset Management L.P. now owns 735,354 shares of the industrial products company’s stock worth $61,865,000 after purchasing an additional 515,948 shares during the last quarter. 89.08% of the stock is owned by institutional investors and hedge funds.

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.