Timken (NYSE:TKR) Sets New 52-Week Low – Should You Sell?

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

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Citigroup raised Timken from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $85.00 to $90.00 in a research note on Monday, December 9th. Evercore ISI raised Timken from an “in-line” rating to an “outperform” rating and increased their price target for the company from $87.00 to $91.00 in a research report on Wednesday, November 13th. Morgan Stanley raised Timken from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $82.00 to $93.00 in a research report on Tuesday. DA Davidson decreased their price target on Timken from $103.00 to $99.00 and set a “buy” rating for the company in a research report on Wednesday, November 6th. Finally, Oppenheimer decreased their price target on Timken from $102.00 to $97.00 and set an “outperform” rating for the company in a research report on Wednesday, November 6th. Five analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, Timken has a consensus rating of “Moderate Buy” and an average price target of $92.90.

Timken Stock Performance

The company has a 50-day moving average of $79.34 and a 200 day moving average of $81.28. The company has a quick ratio of 1.62, a current ratio of 3.00 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $5.05 billion, a PE ratio of 14.97, a PEG ratio of 1.12 and a beta of 1.38.

Timken (NYSE:TKR) last posted its quarterly earnings data on Tuesday, November 5th. The industrial products company reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.15). Timken had a return on equity of 14.82% and a net margin of 7.41%. The firm had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the previous year, the company posted $1.55 earnings per share. Timken’s revenue for the quarter was down 1.4% compared to the same quarter last year. Equities research analysts predict that The Timken Company will post 5.61 EPS for the current year.

Timken Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Tuesday, November 19th were paid a $0.34 dividend. The ex-dividend date of this dividend was Tuesday, November 19th. This represents a $1.36 annualized dividend and a dividend yield of 1.89%. Timken’s payout ratio is currently 28.27%.

Insider Buying and Selling

In other Timken news, Director Richard G. Kyle sold 30,000 shares of the 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 sale, the director now directly owns 194,485 shares in the company, valued at approximately $14,895,606.15. This trade represents a 13.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 8.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Timken

Several hedge funds and other institutional investors have recently modified their holdings of the company. American Century Companies Inc. lifted its holdings in shares of Timken by 4.8% during the 2nd quarter. American Century Companies Inc. now owns 2,817,294 shares of the industrial products company’s stock valued at $225,750,000 after buying an additional 128,791 shares during the period. Thrivent Financial for Lutherans raised its holdings in 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 worth $225,880,000 after purchasing an additional 107,350 shares during the period. Dimensional Fund Advisors LP raised its holdings in Timken by 4.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,104,910 shares of the industrial products company’s stock worth $168,667,000 after purchasing an additional 97,550 shares during the period. State Street Corp raised its holdings in Timken by 3.5% in the 3rd quarter. State Street Corp now owns 1,953,838 shares of the industrial products company’s stock worth $164,689,000 after purchasing an additional 66,208 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC raised its holdings in Timken by 34.3% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 1,700,979 shares of the industrial products company’s stock worth $143,376,000 after purchasing an additional 434,800 shares during the period. 89.08% of the stock is owned by 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.