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

The Timken Company (NYSE:TKR) announced a quarterly dividend on Friday, November 8th,Wall Street Journal reports. Investors of record on Tuesday, November 19th will be given a dividend of 0.34 per share by the industrial products company on Friday, November 29th. This represents a $1.36 dividend on an annualized basis and a yield of 1.80%. The ex-dividend date of this dividend is Tuesday, November 19th.

Timken has raised its dividend by an average of 4.8% per year over the last three years and has raised its dividend every year for the last 11 years. Timken has a payout ratio of 20.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Timken to earn $6.47 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 21.0%.

Timken Price Performance

NYSE TKR opened at $75.59 on Monday. Timken has a 12-month low of $71.57 and a 12-month high of $94.71. The firm’s fifty day simple moving average is $81.89 and its two-hundred day simple moving average is $83.33. The company has a current ratio of 3.00, a quick ratio of 1.62 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $5.30 billion, a P/E ratio of 15.72, a P/E/G ratio of 1.12 and a beta of 1.43.

Timken (NYSE:TKR) last announced its earnings results on Tuesday, November 5th. The industrial products company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.15). Timken had a return on equity of 14.82% and a net margin of 7.41%. The business had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter last year, the firm earned $1.55 earnings per share. The firm’s quarterly revenue was down 1.4% compared to the same quarter last year. Analysts forecast that Timken will post 5.61 EPS for the current fiscal year.

Insider Buying and Selling at Timken

In related news, Director Richard G. Kyle sold 30,000 shares of the firm’s stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $76.59, for a total transaction of $2,297,700.00. Following the sale, the director now directly owns 194,485 shares of the company’s stock, valued at $14,895,606.15. This trade represents a 13.36 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 8.70% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently commented on TKR shares. KeyCorp decreased their price objective on shares of Timken from $104.00 to $90.00 and set an “overweight” rating for the company in a research report on Wednesday, November 6th. DA Davidson lowered their price objective on shares of Timken from $103.00 to $99.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Evercore ISI raised shares of Timken from an “in-line” rating to an “outperform” rating and boosted their price objective for the company from $87.00 to $91.00 in a report on Wednesday, November 13th. Citigroup assumed coverage on Timken in a research note on Monday, October 14th. They issued a “neutral” rating and a $90.00 target price for the company. Finally, Oppenheimer dropped their price target on Timken from $102.00 to $97.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 6th. Seven research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $90.00.

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.