DA Davidson Weighs in on Timken’s FY2024 Earnings (NYSE:TKR)

The Timken Company (NYSE:TKR) – DA Davidson dropped their FY2024 earnings per share (EPS) estimates for Timken in a note issued to investors on Tuesday, October 29th. DA Davidson analyst M. Shlisky now forecasts that the industrial products company will post earnings of $6.07 per share for the year, down from their prior forecast of $6.10. DA Davidson has a “Buy” rating and a $103.00 price objective on the stock. The consensus estimate for Timken’s current full-year earnings is $6.05 per share.

Timken (NYSE:TKR) last announced its quarterly earnings results on Wednesday, July 31st. The industrial products company reported $1.63 EPS for the quarter, beating analysts’ consensus estimates of $1.60 by $0.03. Timken had a return on equity of 16.36% and a net margin of 7.52%. The firm had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same period last year, the firm posted $2.01 earnings per share. The business’s revenue for the quarter was down 7.1% on a year-over-year basis.

A number of other equities analysts have also commented on TKR. Evercore ISI cut their price objective on Timken from $94.00 to $87.00 and set an “in-line” rating on the stock in a research note on Monday, August 19th. Citigroup assumed coverage on Timken in a research note on Monday, October 14th. They issued a “neutral” rating and a $90.00 price objective on the stock. Eight investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $91.70.

Timken Stock Performance

Shares of TKR stock opened at $84.29 on Wednesday. The business’s 50-day moving average price is $83.04 and its 200-day moving average price is $84.03. The company has a current ratio of 2.95, a quick ratio of 1.64 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $5.91 billion, a price-to-earnings ratio of 17.27, a PEG ratio of 1.92 and a beta of 1.43. Timken has a 12 month low of $65.71 and a 12 month high of $94.71.

Institutional Investors Weigh In On Timken

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in Timken by 5.6% during the first quarter. Vanguard Group Inc. now owns 6,515,972 shares of the industrial products company’s stock worth $569,691,000 after buying an additional 347,794 shares in the last quarter. Interval Partners LP bought a new stake in Timken during the first quarter worth $22,907,000. American Century Companies Inc. grew its holdings in Timken by 4.8% during the second quarter. American Century Companies Inc. now owns 2,817,294 shares of the industrial products company’s stock worth $225,750,000 after buying an additional 128,791 shares in the last quarter. Kodai Capital Management LP bought a new stake in Timken during the first quarter worth $9,130,000. Finally, Dimensional Fund Advisors LP grew its holdings in Timken by 4.9% during the second quarter. Dimensional Fund Advisors LP now owns 2,104,910 shares of the industrial products company’s stock worth $168,667,000 after buying an additional 97,550 shares in the last quarter. Institutional investors own 89.08% of the company’s stock.

Insider Activity

In other news, CEO Richard G. Kyle sold 30,000 shares of the business’s stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $80.46, for a total transaction of $2,413,800.00. Following the completion of the sale, the chief executive officer now owns 244,485 shares in the company, valued at $19,671,263.10. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 8.70% of the company’s stock.

Timken Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 30th. Stockholders of record on Tuesday, August 20th were issued a dividend of $0.34 per share. The ex-dividend date was Tuesday, August 20th. This represents a $1.36 annualized dividend and a dividend yield of 1.61%. Timken’s dividend payout ratio is 27.87%.

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.