Timken (NYSE:TKR) Shares Gap Down – Here’s Why

Shares of The Timken Company (NYSE:TKR) gapped down before the market opened on Tuesday . The stock had previously closed at $83.37, but opened at $78.00. Timken shares last traded at $79.95, with a volume of 66,802 shares.

Wall Street Analyst Weigh In

Several brokerages have commented on TKR. DA Davidson restated a “buy” rating and set a $103.00 target price on shares of Timken in a report on Tuesday, September 17th. Citigroup started coverage on shares of Timken in a report on Monday, October 14th. They issued a “neutral” rating and a $90.00 price objective on the stock. Finally, Evercore ISI lowered their price objective on shares of Timken from $94.00 to $87.00 and set an “in-line” rating on the stock in a report on Monday, August 19th. Eight equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Timken has an average rating of “Hold” and a consensus price target of $91.70.

Timken Stock Down 9.8 %

The company has a debt-to-equity ratio of 0.72, a current ratio of 2.95 and a quick ratio of 1.64. The firm’s 50 day moving average is $82.98 and its two-hundred day moving average is $84.00. The firm has a market capitalization of $5.28 billion, a P/E ratio of 16.13, a PEG ratio of 1.89 and a beta of 1.43.

Timken Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 30th. Investors of record on Tuesday, August 20th were paid a $0.34 dividend. The ex-dividend date of this dividend was Tuesday, August 20th. This represents a $1.36 annualized dividend and a dividend yield of 1.81%. Timken’s dividend payout ratio is presently 27.87%.

Insiders Place Their Bets

In other Timken news, CEO Richard G. Kyle sold 30,000 shares of Timken stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $80.46, for a total transaction of $2,413,800.00. Following the completion of the transaction, the chief executive officer now directly owns 244,485 shares of the company’s stock, valued at $19,671,263.10. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On Timken

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in shares of Timken by 5.6% in the first quarter. Vanguard Group Inc. now owns 6,515,972 shares of the industrial products company’s stock valued at $569,691,000 after acquiring an additional 347,794 shares during the period. Interval Partners LP bought a new stake in shares of Timken in the first quarter valued at about $22,907,000. American Century Companies Inc. boosted its position in shares of Timken by 4.8% in the second quarter. American Century Companies Inc. now owns 2,817,294 shares of the industrial products company’s stock valued at $225,750,000 after acquiring an additional 128,791 shares during the period. Kodai Capital Management LP bought a new stake in shares of Timken in the first quarter valued at about $9,130,000. Finally, Dimensional Fund Advisors LP boosted its position in shares of Timken by 4.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,104,910 shares of the industrial products company’s stock valued at $168,667,000 after acquiring an additional 97,550 shares during the period. 89.08% of the stock is owned by institutional investors.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.