Zacks Investment Research lowered shares of Timken (NYSE:TKR) from a hold rating to a strong sell rating in a research report released on Tuesday morning, Zacks.com reports. The firm currently has $56.00 target price on the industrial products company’s stock.
According to Zacks, “Timken’s third-quarter earnings and sales missed the Zacks Consensus Estimate and improved year over year. Timken projects adjusted earnings per share to be $4.70-$4.75 for 2019. The mid-point of the guidance suggests year-over-year growth of 13%. Though acquisition benefits, positive pricing and strong organic growth in renewable energy, aerospace, marine and rail sectors will likely drive top-line growth, lower demand in off-highway, heavy truck and industrial services is expected to offset these positives. Further, the company is well placed to gain from cost-reduction initiatives, acquisitions and strong free cash flow in the current year. However, inflated raw-material prices on account of the implementation of tariffs and elevated interest expenses due to higher debt levels are likely to dent the company’s margins.”
Several other equities analysts have also commented on TKR. Bank of America lowered shares of Timken from a neutral rating to an underperform rating and set a $41.00 price objective on the stock. in a report on Thursday, September 26th. Goldman Sachs Group upgraded shares of Timken from a neutral rating to a buy rating and increased their target price for the stock from $55.00 to $56.00 in a report on Tuesday, July 16th. Morgan Stanley set a $52.00 target price on shares of Timken and gave the stock a hold rating in a report on Friday, November 1st. Finally, ValuEngine upgraded shares of Timken from a strong sell rating to a sell rating in a report on Thursday, October 31st. Three research analysts have rated the stock with a sell rating, one has issued a hold rating and one has issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus price target of $51.25.
Timken (NYSE:TKR) last issued its quarterly earnings data on Wednesday, October 30th. The industrial products company reported $1.14 EPS for the quarter, missing the consensus estimate of $1.18 by ($0.04). Timken had a return on equity of 21.12% and a net margin of 8.11%. The company had revenue of $914.00 million during the quarter, compared to analyst estimates of $945.87 million. During the same quarter in the prior year, the company posted $1.06 earnings per share. The business’s revenue was up 3.7% compared to the same quarter last year. Equities analysts forecast that Timken will post 4.72 earnings per share for the current year.
In other news, CAO Shelly Marie Chadwick acquired 1,183 shares of Timken stock in a transaction dated Monday, November 4th. The shares were acquired at an average cost of $52.73 per share, for a total transaction of $62,379.59. Also, EVP Christopher A. Coughlin sold 46,813 shares of the firm’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $53.00, for a total transaction of $2,481,089.00. Following the completion of the sale, the executive vice president now owns 115,539 shares in the company, valued at $6,123,567. The disclosure for this sale can be found here. Insiders sold a total of 58,143 shares of company stock worth $3,081,427 over the last 90 days. Company insiders own 11.58% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Advisors Preferred LLC acquired a new stake in shares of Timken in the 2nd quarter valued at $37,000. Flagship Harbor Advisors LLC grew its position in shares of Timken by 72.6% in the 3rd quarter. Flagship Harbor Advisors LLC now owns 918 shares of the industrial products company’s stock valued at $39,000 after buying an additional 386 shares during the last quarter. NumerixS Investment Technologies Inc purchased a new position in shares of Timken in the 2nd quarter valued at $56,000. Quest Capital Management Inc. ADV purchased a new position in shares of Timken in the 3rd quarter valued at $78,000. Finally, C M Bidwell & Associates Ltd. purchased a new position in shares of Timken in the 2nd quarter valued at $112,000. Institutional investors and hedge funds own 78.44% of the company’s stock.
The Timken Company engineers, manufactures, and markets 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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