Timken (TKR) Shares Up -6% on Strong Earnings

Timken Co (NYSE:TKR) shares shot up 6% during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $50.38 and last traded at $46.65. 52,653 shares changed hands during trading, a decline of 90% from the average session volume of 519,320 shares. The stock had previously closed at $49.65.

The industrial products company reported $1.11 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.08 by $0.03. Timken had a return on equity of 16.55% and a net margin of 7.71%. The company had revenue of $906.30 million for the quarter, compared to analysts’ expectations of $904.77 million. During the same quarter in the previous year, the business posted $0.68 EPS. The business’s revenue for the quarter was up 20.7% on a year-over-year basis.

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Several research firms have weighed in on TKR. KeyCorp reaffirmed an “overweight” rating and set a $60.00 target price (up previously from $54.00) on shares of Timken in a research note on Wednesday. ValuEngine raised Timken from a “strong sell” rating to a “sell” rating in a research note on Saturday, July 28th. CL King began coverage on Timken in a research note on Thursday, June 28th. They set a “neutral” rating on the stock. Vertical Research raised Timken from a “hold” rating to a “buy” rating in a research note on Friday, May 4th. Finally, Bank of America lifted their target price on Timken from $50.00 to $51.00 and gave the company an “underperform” rating in a research note on Tuesday, May 22nd. Three analysts have rated the stock with a sell rating, one has issued a hold rating and seven have given a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $53.83.

In other news, CFO Philip D. Fracassa sold 3,739 shares of Timken stock in a transaction dated Tuesday, May 8th. The stock was sold at an average price of $47.71, for a total transaction of $178,387.69. Following the completion of the sale, the chief financial officer now directly owns 43,534 shares in the company, valued at approximately $2,077,007.14. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Ward J. Timken, Jr. sold 4,002 shares of Timken stock in a transaction dated Wednesday, May 30th. The shares were sold at an average price of $49.10, for a total value of $196,498.20. Following the sale, the director now owns 269,902 shares of the company’s stock, valued at $13,252,188.20. The disclosure for this sale can be found here. 11.15% of the stock is owned by insiders.

Several institutional investors have recently made changes to their positions in TKR. Bronfman E.L. Rothschild L.P. lifted its holdings in shares of Timken by 1,368.0% during the 1st quarter. Bronfman E.L. Rothschild L.P. now owns 2,202 shares of the industrial products company’s stock valued at $100,000 after buying an additional 2,052 shares during the last quarter. Bank of Montreal Can acquired a new stake in shares of Timken during the 2nd quarter valued at about $123,000. Integrated Investment Consultants LLC acquired a new stake in shares of Timken during the 2nd quarter valued at about $220,000. Palouse Capital Management Inc. acquired a new stake in shares of Timken during the 2nd quarter valued at about $222,000. Finally, Matarin Capital Management LLC acquired a new stake in shares of Timken during the 1st quarter valued at about $271,000. Institutional investors and hedge funds own 77.20% of the company’s stock.

The firm has a market cap of $3.57 billion, a PE ratio of 17.70, a PEG ratio of 0.81 and a beta of 1.53. The company has a quick ratio of 1.24, a current ratio of 2.34 and a debt-to-equity ratio of 0.58.

About Timken

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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