The Timken Company Announces Quarterly Dividend of $0.34 (NYSE:TKR)

The Timken Company (NYSE:TKR) declared a quarterly dividend on Wednesday, August 7th, Wall Street Journal reports. Stockholders of record on Tuesday, August 20th will be given a dividend of 0.34 per share by the industrial products company on Friday, August 30th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date is Tuesday, August 20th.

Timken has raised its dividend by an average of 4.8% annually over the last three years and has increased its dividend annually for the last 11 consecutive years. Timken has a payout ratio of 19.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Timken to earn $7.02 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 19.4%.

Timken Stock Performance

TKR stock opened at $83.01 on Monday. The company has a market cap of $5.84 billion, a P/E ratio of 15.81, a price-to-earnings-growth ratio of 1.75 and a beta of 1.46. Timken has a 1 year low of $65.71 and a 1 year high of $94.71. 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 stock’s fifty day moving average price is $82.20 and its 200-day moving average price is $84.63.

Timken (NYSE:TKR) last released its quarterly earnings results on Wednesday, July 31st. The industrial products company reported $1.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.60 by $0.03. The firm had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.18 billion. Timken had a return on equity of 16.36% and a net margin of 7.52%. The company’s revenue for the quarter was down 7.1% on a year-over-year basis. During the same period last year, the business posted $2.01 EPS. On average, equities analysts forecast that Timken will post 6.13 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on TKR shares. Stifel Nicolaus raised their target price on Timken from $92.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, May 1st. Loop Capital raised their target price on Timken from $78.00 to $87.00 and gave the stock a “hold” rating in a report on Wednesday, May 1st. Raymond James started coverage on Timken in a report on Friday, June 28th. They issued a “market perform” rating on the stock. Finally, KeyCorp raised their target price on Timken from $95.00 to $104.00 and gave the stock an “overweight” rating in a report on Thursday, May 23rd. One analyst has rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $87.91.

Insider Buying and Selling at Timken

In other news, CEO Richard G. Kyle sold 30,000 shares of Timken stock in a transaction dated Thursday, August 8th. The stock was sold at an average price of $80.46, for a total value of $2,413,800.00. Following the sale, the chief executive officer now directly owns 244,485 shares of the company’s stock, valued at $19,671,263.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 8.70% of the company’s stock.

Timken Company Profile

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.