The Timken Company (NYSE:TKR) Plans Dividend Increase – $0.31 Per Share

The Timken Company (NYSE:TKRGet Rating) declared a quarterly dividend on Friday, May 6th, Zacks reports. Shareholders of record on Monday, May 16th will be given a dividend of 0.31 per share by the industrial products company on Thursday, June 2nd. This represents a $1.24 annualized dividend and a yield of 2.10%. The ex-dividend date of this dividend is Friday, May 13th. This is a positive change from Timken’s previous quarterly dividend of $0.30.

Timken has raised its dividend payment by an average of 2.4% per year over the last three years and has raised its dividend annually for the last 2 consecutive years. Timken has a dividend payout ratio of 19.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Timken to earn $6.14 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 19.5%.

NYSE TKR opened at $59.01 on Friday. The firm’s fifty day simple moving average is $60.48 and its two-hundred day simple moving average is $66.53. The company has a current ratio of 2.94, a quick ratio of 1.31 and a debt-to-equity ratio of 0.74. Timken has a 12-month low of $55.32 and a 12-month high of $92.39. The firm has a market capitalization of $4.37 billion, a P/E ratio of 12.09, a P/E/G ratio of 1.00 and a beta of 1.56.

Timken (NYSE:TKRGet Rating) last posted its quarterly earnings data on Monday, May 2nd. The industrial products company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.16 by $0.45. Timken had a net margin of 8.84% and a return on equity of 15.97%. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the previous year, the firm posted $1.38 earnings per share. The business’s revenue for the quarter was up 9.6% compared to the same quarter last year. As a group, sell-side analysts predict that Timken will post 5.3 earnings per share for the current fiscal year.

In other Timken news, CFO Philip D. Fracassa sold 5,000 shares of the company’s stock in a transaction dated Friday, February 18th. The shares were sold at an average price of $68.32, for a total value of $341,600.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 10.79% of the company’s stock.

Several institutional investors have recently modified their holdings of the business. Morgan Stanley raised its position in shares of Timken by 210.9% in the second quarter. Morgan Stanley now owns 684,964 shares of the industrial products company’s stock worth $55,200,000 after acquiring an additional 464,666 shares during the period. Nuveen Asset Management LLC increased its stake in shares of Timken by 11.9% during the fourth quarter. Nuveen Asset Management LLC now owns 137,018 shares of the industrial products company’s stock worth $9,494,000 after purchasing an additional 14,586 shares in the last quarter. Metropolitan Life Insurance Co NY increased its stake in shares of Timken by 8.5% during the fourth quarter. Metropolitan Life Insurance Co NY now owns 12,255 shares of the industrial products company’s stock worth $849,000 after purchasing an additional 965 shares in the last quarter. NewEdge Advisors LLC purchased a new stake in shares of Timken during the fourth quarter worth about $693,000. Finally, William Blair Investment Management LLC purchased a new stake in shares of Timken during the fourth quarter worth about $447,000. Institutional investors and hedge funds own 80.18% of the company’s stock.

Several research firms have recently commented on TKR. Evercore ISI upgraded shares of Timken from an “in-line” rating to an “outperform” rating and set a $78.00 price objective for the company in a research note on Tuesday, February 15th. They noted that the move was a valuation call. KeyCorp decreased their target price on shares of Timken from $84.00 to $75.00 in a research report on Tuesday. Oppenheimer started coverage on shares of Timken in a research report on Wednesday, April 13th. They set an “outperform” rating and a $75.00 target price for the company. Bank of America downgraded shares of Timken from a “buy” rating to a “neutral” rating and decreased their target price for the company from $85.00 to $80.00 in a research report on Friday, January 7th. Finally, The Goldman Sachs Group decreased their target price on shares of Timken from $74.00 to $64.00 and set a “neutral” rating for the company in a research report on Thursday, April 7th. Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $77.10.

Timken Company Profile (Get Rating)

The Timken Company designs, manufactures, and manages engineered bearings and power transmission products worldwide. It operates in two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, and lubrication devices and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches, 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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Dividend History for Timken (NYSE:TKR)

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