Citigroup has recently initiated Timken Co (TKR) stock to Neutral rating, as announced on October 14, 2024, according to Finviz. Earlier, on June 28, 2024, Raymond James had initiated the stock to Mkt Perform. Evercore ISI also reduced rating with a price target of $84. Additionally, DA Davidson initiated Buy rating on January 23, 2024, with a target price of $92. Morgan Stanley analysts, in their report published on January 8, 2024, also initiated research coverage and set a price target of $74 for Timken Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Timken Co (TKR) Stock Trading Recap
On Tuesday, Timken Co (TKR) stock saw a decline, ending the day at $72.6 which represents a decrease of $-10.77 or -12.92% from the prior close of $83.37. The stock opened at $78 and touched a low of $72.35 during the day, reaching a high of $80.72. The volume of shares traded was 2.26 million exceeding the average volume of 0.44 million.
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TKR Stock Performance and Moving Averages
In recent trading, Timken Co (TKR) stock price has shown some volatility, fluctuating -14.00% over the last five trades and -12.61% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -19.34%, and it has plunged by -9.22% in the previous three months. Currently, TKR is trading at -13.53%, -12.26%, and -13.61% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, TKR, a Industrials sector stock, is trading -23.34% below its 52-week high but remains 3.49% above its 52-week low. The Average True Range (ATR) (14 days) of 2.34 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Timken Co’s Profitability and Valuation Ratios
Timken Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 14.47% and a profit margin of 7.52%, with a gross margin of -19.34%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Timken Co’s market capitalization stands at $5.09 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 14.89, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.5. Additionally, the Price-to-Sales Ratio is 1.11, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.82, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 10.04% of Timken Co (TKR)’s shares, while financial institutions hold 84.95%.
Notable insider trades include Kyle Richard G, President and CEO at Timken Co (TKR), who sold 20000 shares on Aug 15 ’24, at $83.4 each, totaling $1.67 million. On Aug 15 ’24, Fracassa Philip D., EVP & CFO, sold 5000 shares for $83.19 each, amounting to $0.42 million. Additionally, on Aug 13 ’24, Fracassa Philip D. sold 5000 shares at $80.77 each, generating $0.40 million.