Hudson Bay Capital Management LP Boosts Stake in The Timken Company (NYSE:TKR)

Hudson Bay Capital Management LP lifted its holdings in The Timken Company (NYSE:TKR) by 130.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 130,500 shares of the industrial products company’s stock after buying an additional 73,916 shares during the quarter. Hudson Bay Capital Management LP’s holdings in Timken were worth $9,314,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of TKR. Graham Capital Management L.P. purchased a new stake in Timken during the fourth quarter worth $1,534,000. Ethic Inc. boosted its position in Timken by 2.8% during the fourth quarter. Ethic Inc. now owns 6,882 shares of the industrial products company’s stock worth $491,000 after purchasing an additional 188 shares in the last quarter. Deutsche Bank AG boosted its position in Timken by 150.8% during the fourth quarter. Deutsche Bank AG now owns 11,427 shares of the industrial products company’s stock worth $816,000 after purchasing an additional 6,870 shares in the last quarter. D. E. Shaw & Co. Inc. purchased a new stake in Timken during the fourth quarter worth $12,338,000. Finally, Ameriprise Financial Inc. boosted its position in Timken by 1.3% during the fourth quarter. Ameriprise Financial Inc. now owns 97,084 shares of the industrial products company’s stock worth $6,929,000 after purchasing an additional 1,206 shares in the last quarter. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

Timken Stock Performance

Timken stock opened at $68.62 on Monday. The firm has a market capitalization of $4.80 billion, a P/E ratio of 13.75, a PEG ratio of 1.51 and a beta of 1.30. The stock has a fifty day moving average price of $67.77 and a 200 day moving average price of $73.92. The Timken Company has a 52 week low of $56.20 and a 52 week high of $93.66. The company has a current ratio of 3.07, a quick ratio of 1.61 and a debt-to-equity ratio of 0.69.

Timken (NYSE:TKR) last posted its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.03). Timken had a net margin of 7.71% and a return on equity of 13.93%. The firm had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.13 billion. During the same period last year, the firm posted $1.77 EPS. Timken’s revenue was down 4.2% on a year-over-year basis. Equities research analysts anticipate that The Timken Company will post 5.62 earnings per share for the current year.

Timken Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 23rd. Shareholders of record on Tuesday, May 13th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.04%. The ex-dividend date is Tuesday, May 13th. This is an increase from Timken’s previous quarterly dividend of $0.34. Timken’s payout ratio is 30.17%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on TKR shares. Jefferies Financial Group reissued a “hold” rating and issued a $70.00 price target (down from $90.00) on shares of Timken in a report on Wednesday, April 2nd. Loop Capital cut their price target on Timken from $85.00 to $65.00 and set a “hold” rating for the company in a report on Thursday, April 17th. DA Davidson boosted their price target on Timken from $66.00 to $71.00 and gave the stock a “neutral” rating in a report on Monday, May 5th. Citigroup boosted their price target on Timken from $70.00 to $75.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Bank of America raised Timken from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $73.00 to $78.00 in a report on Tuesday, February 4th. Seven equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, Timken currently has an average rating of “Hold” and an average price target of $80.20.

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.