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

The Timken Company (NYSE:TKR) declared a quarterly dividend on Friday, November 8th,Wall Street Journal reports. Stockholders 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 annualized dividend and a dividend 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 increased its dividend annually for the last 11 consecutive years. Timken has a dividend payout ratio of 20.8% indicating that its dividend is sufficiently covered by earnings. Equities 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 Trading Up 0.8 %

NYSE:TKR opened at $75.59 on Friday. The stock has a 50-day simple moving average of $81.89 and a 200-day simple moving average of $83.36. The stock has a market cap 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 has a 1 year low of $71.57 and a 1 year high of $94.71. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.62 and a current ratio of 3.00.

Timken (NYSE:TKR) last posted 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 net margin of 7.41% and a return on equity of 14.82%. The firm had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same period in the previous year, the firm posted $1.55 earnings per share. The firm’s revenue for the quarter was down 1.4% on a year-over-year basis. As a group, analysts anticipate that Timken will post 5.61 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TKR. Citigroup began coverage on Timken in a report on Monday, October 14th. They issued a “neutral” rating and a $90.00 target price for the company. KeyCorp reduced their target price on Timken from $104.00 to $90.00 and set an “overweight” rating for the company in a report on Wednesday, November 6th. Oppenheimer reduced their target price on Timken from $102.00 to $97.00 and set an “outperform” rating for the company in a report on Wednesday, November 6th. DA Davidson reduced their price objective on Timken from $103.00 to $99.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. Finally, Evercore ISI raised Timken from an “in-line” rating to an “outperform” rating and upped their price objective for the company from $87.00 to $91.00 in a research note on Wednesday. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $90.00.

Insider Activity

In other news, Director Richard G. Kyle sold 30,000 shares of the firm’s stock in a transaction that occurred on Friday, November 8th. The stock was sold at an average price of $76.59, for a total value of $2,297,700.00. Following the completion of 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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.