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Natixis Advisors LLC Raises Holdings in The Timken Company (NYSE:TKR)

Natixis Advisors LLC Raises Holdings in The Timken Company (NYSE:TKR)

  • 24.03.2025 09:25
  • etfdailynews.com
  • Keywords: High Debt, Low Profitability

Natixis Advisors LLC increased its stake in Timken by 6.5%, purchasing additional shares, while other hedge funds also boosted their holdings. The company received positive analyst ratings with a "Moderate Buy" average and an increased target price.

Meta ProductsJEFsentiment_satisfiedCsentiment_dissatisfiedMS/PLsentiment_satisfiedBAC/PNsentiment_neutral

Estimated market influence

Natixis Advisors LLC

Positivesentiment_satisfied
Analyst rating: N/A

Natixis Advisors increased their holdings in Timken by 6.5% during the fourth quarter, indicating confidence in the company's stock performance.

Commerce Bank

Positivesentiment_satisfied
Analyst rating: N/A

Commerce Bank boosted its stake in Timken by 5.5% in the third quarter, showing increased investment in the company.

First Horizon Advisors Inc.

Positivesentiment_satisfied
Analyst rating: N/A

First Horizon Advisors increased their holdings by 16.5%, reflecting a positive outlook on Timken's stock.

BNP PARIBAS ASSET MANAGEMENT Holding S.A.

Positivesentiment_satisfied
Analyst rating: N/A

BNP PARIBAS increased its stake in Timken, indicating confidence in the company's future performance.

Charles Schwab Investment Management Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Charles Schwab raised its holdings in Timken by 0.3%, showing support for the stock.

Penserra Capital Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Penserra acquired a new position in Timken, indicating a fresh investment based on potential growth.

Jefferies Financial Group

Jefferies Financial Group

Positivesentiment_satisfied
Analyst rating: Buy

Jefferies upgraded Timken's rating from 'hold' to 'buy', increasing the target price, which is a positive signal for investors.

Evercore ISI

Positivesentiment_satisfied
Analyst rating: N/A

Evercore ISI raised their price target and maintained an 'outperform' rating on Timken, showing confidence in its stock.

Citigroup

Citigroup

Negativesentiment_dissatisfied
Analyst rating: Buy

Citigroup downgraded their price target for Timken from $90 to $85 but still maintained a 'buy' rating, indicating some concern about the stock's valuation.

Morgan Stanley

Positivesentiment_satisfied
Analyst rating: —

Morgan Stanley upgraded Timken's rating and increased their price target, signaling a positive outlook for the company.

Bank of America

Neutralsentiment_neutral
Analyst rating: —

Bank of America changed their rating from 'underperform' to 'neutral', suggesting a more cautious stance on Timken's stock.

The Timken Company

Positivesentiment_satisfied
Analyst rating: N/A

Timken reported strong earnings, beating estimates with EPS of $1.16 and a positive outlook for the fiscal year.

Context

Analysis of Natixis Advisors LLC's Investment in The Timken Company (TKR)

Market Sentiment

  • Analyst Upgrades: Multiple analysts have upgraded Timken, reflecting positive sentiment. Notable upgrades include:
    • Jefferies: Upgraded from "Hold" to "Buy," with a price target raised from $80 to $95.
    • Evercore ISI: Raised price target from $91 to $102 and maintained an "Outperform" rating.
    • Morgan Stanley: Increased price target from $93 to $94 and reaffirmed "Overweight."
  • Average Rating: The company has a "Moderate Buy" average rating with a target price of $92.70.

Institutional Investment

  • Natixis Advisors LLC:
    • Increased holdings by 6.5%, adding 2,042 shares, totaling 33,679 shares.
    • Holdings valued at $2,404,000 as of the latest filing.
  • Other Hedge Funds:
    • Commerce Bank: Boosted stake by 5.5%, owning 5,994 shares worth $505,000.
    • First Horizon Advisors Inc.: Increased holdings by 16.5%, holding 1,823 shares valued at $154,000.
    • BNP PARIBAS ASSET MANAGEMENT Holding S.A.: Raised stake by 0.5%, owning 122,557 shares worth $10,330,000.
    • Charles Schwab Investment Management Inc.: Increased holdings by 0.3%, holding 649,952 shares valued at $54,784,000.
    • Penserra Capital Management LLC: Acquired a new position worth $451,000.

Insider Trading

  • CFO Sale: The CFO sold 5,000 shares at an average price of $81.50, totaling $407,500.
    • Ownership decreased by 5.23%, but the CFO still holds 90,541 shares worth approximately $7,379,091.50.
  • Insider Ownership: 8.70% of the company is owned by insiders.

Financial Health

  • Key Metrics:
    • Market Capitalization: $5.20 billion
    • Debt-to-Equity Ratio: 0.69
    • Current Ratio: 3.07
    • Quick Ratio: 1.61
    • 50-Day SMA: $78.21
    • 200-Day SMA: $78.43
  • Earnings:
    • Q4 EPS: $1.16, beating estimates of $1.08.
    • ROE: 13.93%
    • Net Margin: 7.71%
    • FY2024 EPS Estimate: 5.62

Dividend Policy

  • Dividend: Quarterly dividend of $0.34, annualized to $1.36.
  • Yield: 1.83%
  • Payout Ratio: 27.25%

Industry Position

  • Business Model: Timken designs, manufactures, and sells engineered bearings and industrial motion products globally.
  • Product Range: Includes tapered, spherical, cylindrical roller bearings, plain bearings, metal-polymer bearings, rod end bearings, radial, angular, precision ball bearings, thrust and specialty ball bearings, journal bearings, and housed or mounted bearings.

Risks & Opportunities

  • Opportunities: Positive analyst sentiment, increased institutional investment, and strong financial performance suggest potential growth.
  • Risks: Dependence on cyclical industries and global trade conditions may impact performance.

Competitive Dynamics

  • Competitive Advantage: Diverse product portfolio and strong financial health position Timken favorably in the industrial products sector.

Long-Term Implications

  • Strategic Considerations: Focus on innovation, operational efficiency, and market expansion could drive long-term growth.
  • Regulatory Impact: Compliance with industry standards and potential regulatory changes will be critical for sustained success.