The Timken Company (TKR): What’s Inside the Story?

On Wednesday, shares of The Timken Company (NYSE:TKR) marked $42.38 per share versus a previous $44.05 closing price. With having a -3.79% loss, an insight into the fundamental values of The Timken Company, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. TKR showed a fall of -24.74% within its YTD performance, with highs and lows between $22.25 – $58.78 during the period of 52 weeks, compared to the simple moving average of -7.23% in the period of the last 200 days.

BofA/Merrill equity researchers changed the status of The Timken Company (NYSE: TKR) shares from “Underperform” to a “Buy” rating in the report published on January 7th, 2020. Other analysts, including BofA/Merrill, also published their reports on TKR shares. BofA/Merrill repeated the rating from the previous report, marking TKR under “Underperform” rating, in the report published on September 26th, 2019. Additionally, TKR shares got another “Buy” rating from Goldman, setting a target price of $56 on the company’s shares, according to the report published in July 16th, 2019. On the other hand, Morgan Stanley Initiated the “Equal-Weight” rating for TKR shares, as published in the report on June 10th, 2019. BofA/Merrill seems to be going bullish on the price of TKR shares, based on the price prediction for TKR. Another “Neutral” rating came from Goldman, providing a prediction for price target according to the report published in October 3rd, 2018.

The Timken Company (TKR) Analysis

The present dividend yield for TKR owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with The Timken Company, the company needs to provide a healthy cash flow, currently at the value of 10.22. In addition, the growth of sales from quarter to quarter is recording -5.70%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of The Timken Company (TKR) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 19.70% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.70 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while TKR is currently recording an average of 669.65K in volumes. The volatility of the stock on monthly basis is set at 3.90%, while the weekly volatility levels are marked at 3.23%with -4.96% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $49.44, indicating growth from the present price of $42.38, which can represent yet another valuable research and analysis points that can help you decide whether to invest in TKR or pass.

What to Look for When Analyzing The Timken Company Shares?

The Timken Company (TKR) is based in the USA and it represents one of the well-known company operating with Industrials sector. If you wish to compare TKR shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 9.27 for The Timken Company, while the value 11.73 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.57 is supported by the yearly EPS growth of 21.80%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.90%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 80.30% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in TKR Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in TKR in the recent period. That is how The Vanguard Group, Inc. now has an increase position in TKR by 1.81% in the first quarter, owning 6.48 million shares of TKR stocks, with the value of $275.51 million after the purchase of an additional 115,292 shares during the last quarter. In the meanwhile, Adage Capital Management LP also increased their stake in TKR shares changed 182.93% in the first quarter, which means that the company now owns 2.58 million shares of company, all valued at $109.55 million after the acquisition of additional 1,664,949 shares during the last quarter.

Dimensional Fund Advisors LP acquired a new position in The Timken Company during the first quarter, with the value of $106.93 million, and EARNEST Partners LLC increased their stake in the company’s shares by 2.98% in the first quarter, now owning 63,572 shares valued at $93.49 million after the acquisition of the additional 2.2 million shares during the last quarter. In the end, LSV Asset Management increased their position by 8.61% during the first quarter, now owning 1.87 million TKR shares, now holding the value of $79.61 million in TKR with the purchase of the additional 127,292 shares during the period of the last quarter. At the present, 80.30% of TKR shares are in the ownership of institutional investors.