Wall Street Zen Downgrades Timken (NYSE:TKR) to Hold

Timken (NYSE:TKR) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Several other brokerages have also commented on TKR. Weiss Ratings restated a “hold (c+)” rating on shares of Timken in a report on Wednesday, January 21st. Morgan Stanley increased their price target on shares of Timken from $105.00 to $116.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 10th. DA Davidson raised their price objective on shares of Timken from $86.00 to $108.00 and gave the stock a “neutral” rating in a report on Tuesday, February 10th. Oppenheimer set a $108.00 target price on Timken in a report on Thursday, February 5th. Finally, Citigroup increased their target price on Timken from $105.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, February 5th. Four investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $93.78.

Timken Stock Performance

Timken stock opened at $108.12 on Friday. Timken has a 1-year low of $56.20 and a 1-year high of $111.39. The firm has a market cap of $7.52 billion, a P/E ratio of 26.31, a P/E/G ratio of 1.57 and a beta of 1.21. The company has a current ratio of 2.82, a quick ratio of 1.47 and a debt-to-equity ratio of 0.56. The firm has a 50-day moving average of $94.14 and a 200-day moving average of $83.32.

Timken (NYSE:TKR) last released its quarterly earnings data on Wednesday, February 4th. The industrial products company reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.05. The business had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. Timken had a return on equity of 11.52% and a net margin of 6.29%.The business’s revenue was up 3.5% on a year-over-year basis. During the same quarter last year, the business posted $1.16 EPS. Timken has set its FY 2026 guidance at 5.500-6.000 EPS. Sell-side analysts expect that Timken will post 5.62 EPS for the current year.

Insider Activity at Timken

In related news, Director Richard G. Kyle sold 15,837 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $81.03, for a total value of $1,283,272.11. Following the sale, the director owned 266,942 shares in the company, valued at $21,630,310.26. This represents a 5.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 8.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Timken

A number of institutional investors have recently made changes to their positions in the company. Invesco Ltd. lifted its position in Timken by 1.0% in the 4th quarter. Invesco Ltd. now owns 1,371,613 shares of the industrial products company’s stock valued at $115,394,000 after acquiring an additional 13,459 shares in the last quarter. Corient Private Wealth LLC raised its stake in shares of Timken by 111.8% in the fourth quarter. Corient Private Wealth LLC now owns 17,933 shares of the industrial products company’s stock worth $1,517,000 after purchasing an additional 9,465 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in shares of Timken by 6.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 47,807 shares of the industrial products company’s stock worth $4,022,000 after purchasing an additional 2,939 shares during the last quarter. EP Wealth Advisors LLC bought a new position in shares of Timken during the fourth quarter valued at $231,000. Finally, Empowered Funds LLC boosted its position in shares of Timken by 106.3% during the fourth quarter. Empowered Funds LLC now owns 7,788 shares of the industrial products company’s stock valued at $655,000 after buying an additional 4,012 shares during the last quarter. Hedge funds and other institutional investors own 89.08% of the company’s stock.

Trending Headlines about Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Zacks nudged up Q4 2027 EPS to $1.52 (from $1.50) — a small upward revision that supports better late‑cycle profitability expectations. Zacks revisions – MarketBeat
• Positive Sentiment: Zacks published a FY2028 EPS forecast of $6.96, signaling stronger longer‑term growth expectations vs. current consensus — a potential reason investors are looking past some near‑term cuts.
• Neutral Sentiment: Small trims to near‑term quarters: Q1 2026 to $1.49 (from $1.51) and Q2 2026 to $1.55 (from $1.60) — modest reductions that temper, but do not radically change, near‑quarter expectations.
• Negative Sentiment: Larger downward revisions for 2026/2027 cadence: Q4 2026 cut to $1.25 (from $1.43), and multiple 2027 quarters trimmed (Q1 2027 to $1.56 from $1.63; Q2 2027 to $1.65 from $1.71; Q3 2027 to $1.61 from $1.69). These reductions suggest Zacks expects weaker demand or margin pressure in the near‑to‑mid term.
• Negative Sentiment: FY revisions: FY2026 lowered to $5.80 (from $6.04) and FY2027 lowered to $6.33 (from $6.53). Those cuts reduce near‑term earnings visibility and are a negative for valuation if sustained.

About Timken

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken’s products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken’s portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.