Timken (TKR) Reaches New 1-Year Low After Earnings Miss

Timken Co (NYSE:TKR) hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $34.90 and last traded at $36.59, with a volume of 63860 shares changing hands. The stock had previously closed at $37.25.

The industrial products company reported $1.06 earnings per share for the quarter, missing analysts’ consensus estimates of $1.07 by ($0.01). The company had revenue of $881.30 million during the quarter, compared to analyst estimates of $912.58 million. Timken had a net margin of 7.60% and a return on equity of 18.39%. The business’s revenue for the quarter was up 14.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.71 EPS.

TKR has been the subject of a number of research reports. Zacks Investment Research raised shares of Timken from a “hold” rating to a “buy” rating and set a $49.00 price target for the company in a report on Saturday, October 13th. ValuEngine lowered shares of Timken from a “sell” rating to a “strong sell” rating in a report on Friday, October 12th. Goldman Sachs Group initiated coverage on shares of Timken in a report on Tuesday, October 2nd. They issued a “neutral” rating and a $56.00 price target for the company. Bank of America raised 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. Finally, KeyCorp raised their price target on shares of Timken from $54.00 to $60.00 and gave the company an “overweight” rating in a report on Wednesday, August 1st. One research analyst has rated the stock with a sell rating, three have issued a hold rating and six have assigned a buy rating to the company’s stock. Timken presently has a consensus rating of “Buy” and an average target price of $56.20.



In other Timken news, insider Shelly Marie Chadwick sold 1,043 shares of Timken stock in a transaction on Tuesday, August 21st. The shares were sold at an average price of $48.85, for a total transaction of $50,950.55. Following the completion of the sale, the insider now owns 3,102 shares of the company’s stock, valued at approximately $151,532.70. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Philip D. Fracassa sold 3,582 shares of Timken stock in a transaction on Friday, August 10th. The stock was sold at an average price of $48.39, for a total transaction of $173,332.98. Following the sale, the chief financial officer now directly owns 43,534 shares of the company’s stock, valued at approximately $2,106,610.26. The disclosure for this sale can be found here. 11.15% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Visionary Asset Management Inc. grew its holdings in Timken by 14.7% during the 3rd quarter. Visionary Asset Management Inc. now owns 8,155 shares of the industrial products company’s stock worth $407,000 after acquiring an additional 1,044 shares during the period. Arizona State Retirement System grew its holdings in shares of Timken by 2.3% in the 2nd quarter. Arizona State Retirement System now owns 47,409 shares of the industrial products company’s stock valued at $2,065,000 after buying an additional 1,047 shares during the period. Aperio Group LLC grew its holdings in shares of Timken by 6.2% in the 3rd quarter. Aperio Group LLC now owns 26,842 shares of the industrial products company’s stock valued at $1,338,000 after buying an additional 1,560 shares during the period. Intrust Bank NA grew its holdings in shares of Timken by 11.3% in the 2nd quarter. Intrust Bank NA now owns 15,576 shares of the industrial products company’s stock valued at $679,000 after buying an additional 1,580 shares during the period. Finally, PNC Financial Services Group Inc. grew its holdings in shares of Timken by 16.9% in the 2nd quarter. PNC Financial Services Group Inc. now owns 11,060 shares of the industrial products company’s stock valued at $482,000 after buying an additional 1,599 shares during the period. 77.51% of the stock is owned by hedge funds and other institutional investors.

The firm has a market cap of $2.90 billion, a PE ratio of 14.49, a price-to-earnings-growth ratio of 0.60 and a beta of 1.58. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.30 and a current ratio of 2.39.

Timken Company Profile (NYSE:TKR)

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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