Timken (NYSE:TKR) Reaches New 1-Year Low – Should You Sell?

The Timken Company (NYSE:TKR)’s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $57.17 and last traded at $57.51, with a volume of 30756 shares changing hands. The stock had previously closed at $60.09.

Analyst Ratings Changes

A number of brokerages have issued reports on TKR. Bank of America raised Timken from an “underperform” rating to a “neutral” rating and boosted their price target for the company from $73.00 to $78.00 in a report on Tuesday, February 4th. Citigroup decreased their target price on shares of Timken from $95.00 to $70.00 and set a “buy” rating for the company in a research note on Tuesday. Morgan Stanley raised their price target on shares of Timken from $93.00 to $94.00 and gave the company an “overweight” rating in a research report on Tuesday, February 11th. The Goldman Sachs Group cut their price objective on shares of Timken from $85.00 to $75.00 and set a “neutral” rating for the company in a report on Wednesday, April 2nd. Finally, Jefferies Financial Group reissued a “hold” rating and set a $70.00 target price (down from $90.00) on shares of Timken in a research note on Wednesday, April 2nd. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $87.45.

Timken Price Performance

The company has a current ratio of 3.07, a quick ratio of 1.61 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $3.96 billion, a price-to-earnings ratio of 11.42, a price-to-earnings-growth ratio of 1.51 and a beta of 1.28. The company’s 50 day moving average is $75.93 and its 200 day moving average is $77.32.

Timken (NYSE:TKR) last announced its earnings results on Wednesday, February 5th. The industrial products company reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.08. Timken had a net margin of 7.71% and a return on equity of 13.93%. Research analysts anticipate that The Timken Company will post 5.62 EPS for the current fiscal year.

Timken Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Tuesday, February 25th were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Tuesday, February 25th. This represents a $1.36 dividend on an annualized basis and a yield of 2.41%. Timken’s payout ratio is currently 27.25%.

Insider Buying and Selling

In other Timken news, CFO Philip D. Fracassa sold 5,000 shares of the firm’s stock in a transaction on Friday, February 7th. The stock was sold at an average price of $81.50, for a total transaction of $407,500.00. Following the completion of the transaction, the chief financial officer now owns 90,541 shares of the company’s stock, valued at approximately $7,379,091.50. This trade represents a 5.23 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 8.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Beese Fulmer Investment Management Inc. increased its holdings in shares of Timken by 1.8% during the 1st quarter. Beese Fulmer Investment Management Inc. now owns 15,114 shares of the industrial products company’s stock worth $1,086,000 after buying an additional 268 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of Timken by 11.2% in the 1st quarter. Parallel Advisors LLC now owns 3,616 shares of the industrial products company’s stock worth $260,000 after purchasing an additional 365 shares during the period. GAMMA Investing LLC lifted its stake in shares of Timken by 27,378.3% in the 1st quarter. GAMMA Investing LLC now owns 82,435 shares of the industrial products company’s stock valued at $5,925,000 after purchasing an additional 82,135 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Timken by 25.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 7,288 shares of the industrial products company’s stock worth $520,000 after purchasing an additional 1,489 shares during the period. Finally, Phocas Financial Corp. acquired a new stake in Timken during the 4th quarter worth approximately $3,623,000. 89.08% of the stock is currently owned by institutional investors and hedge funds.

Timken Company Profile

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.