Bank of America Corp. Downgrades Timken Co. (TKR) to Neutral
Timken Co. (NYSE:TKR) was downgraded by investment analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Thursday. They presently have a $40.00 price objective on the stock. Bank of America Corp.’s price objective points to a potential upside of 4.58% from the company’s previous close. The analysts noted that the move was a valuation call.
Several other research analysts also recently commented on TKR. Zacks Investment Research downgraded Timken from a “hold” rating to a “strong sell” rating in a report on Wednesday, November 2nd. Evercore ISI raised Timken from a “hold” rating to a “buy” rating and set a $37.00 target price on the stock in a report on Monday, November 7th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the stock. Timken has a consensus rating of “Hold” and a consensus price target of $34.63.
Timken (NYSE:TKR) opened at 38.25 on Thursday. The company has a 50 day moving average price of $34.43 and a 200-day moving average price of $33.35. The firm has a market capitalization of $2.98 billion, a PE ratio of 33.00 and a beta of 1.44. Timken has a one year low of $22.22 and a one year high of $39.00.
Timken (NYSE:TKR) last announced its earnings results on Thursday, October 27th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.46 by $0.03. The business had revenue of $657.40 million for the quarter, compared to the consensus estimate of $1.28 billion. Timken had a return on equity of 12.38% and a net margin of 3.40%. Timken’s revenue was down 7.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.55 EPS. On average, equities analysts predict that Timken will post $1.93 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 2nd. Shareholders of record on Tuesday, November 22nd will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 2.72%. The ex-dividend date is Friday, November 18th. Timken’s dividend payout ratio is 88.89%.
In other news, EVP William R. Burkhart sold 4,235 shares of the stock in a transaction on Monday, August 29th. The stock was sold at an average price of $34.37, for a total value of $145,556.95. Following the transaction, the executive vice president now owns 40,607 shares of the company’s stock, valued at approximately $1,395,662.59. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Philip D. Fracassa sold 2,229 shares of the stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $34.27, for a total value of $76,387.83. Following the completion of the transaction, the chief financial officer now directly owns 30,784 shares in the company, valued at approximately $1,054,967.68. The disclosure for this sale can be found here. Company insiders own 10.30% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vulcan Value Partners LLC increased its position in Timken by 29.0% in the second quarter. Vulcan Value Partners LLC now owns 1,548,244 shares of the company’s stock worth $47,469,000 after buying an additional 347,891 shares during the period. First Trust Advisors LP bought a new position in Timken during the third quarter worth $12,178,000. Credit Suisse AG increased its position in Timken by 190.0% in the third quarter. Credit Suisse AG now owns 489,879 shares of the company’s stock worth $17,215,000 after buying an additional 320,932 shares during the period. JPMorgan Chase & Co. increased its position in Timken by 74.2% in the second quarter. JPMorgan Chase & Co. now owns 736,787 shares of the company’s stock worth $22,590,000 after buying an additional 313,795 shares during the period. Finally, American Century Companies Inc. increased its position in Timken by 1,836.0% in the second quarter. American Century Companies Inc. now owns 323,674 shares of the company’s stock worth $9,924,000 after buying an additional 306,955 shares during the period. 77.55% of the stock is currently owned by institutional investors.
Timken Company Profile
The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products and offers a spectrum of power system rebuild and repair services around the world. The Company operates through two segments: Mobile Industries, which offers bearings, seals, lubrication devices and systems, as well as power transmission components, engineered chain, augers and related products and maintenance services, and Process Industries, which provides industrial bearings and assemblies, power transmission components such as gears and gearboxes, couplings, seals, lubricants, chains and related products and services.
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