The Timken Company (TKR): Stock Have a Latest Story:

The Timken Company (TKR):

The Timken Company (TKR) stock finished at $38.74 and recorded change of -2.52% in Thursday trading session. The Company kept 67M Floating Shares and holds 75.04M shares outstanding. The recent trading activity revealed that the stock price is at 11.00% off from its 52-week low and traded with move of -30.39% from high printed in the last 52-week period.

The company’s earnings per share shows growth of 70.20% for the current year and expected to arrive earnings growth for the next year at 16.07% . Analyst projected EPS growth for the next 5 years at2.50%. The company’s EPS growth rate for past five years was -2.00%. The earnings growth rate for the next years is an important measure for investors planning to hold onto a stock for several years. The company’s earnings will usually have a direct relationship to the price of the company’s stock. The stock observed Sales growth of -2.20% during past 5 years. EPS growth quarter over quarter stands at 34.50% and Sales growth quarter over quarter is at 14.20%.

Shares price moved with -25.03% from its 50 Day high and distanced at 11.00% from 50 Day low. Analyses consensus rating score stands at 2.1. For the next one year period, the average of individual price target estimates referred by covering sell-side analysts is $55.57.

As took short look on profitability, the firm profit margin which was recorded 7.90%, and operating margin was noted at 12.10%. The company maintained a Gross Margin of 28.90%. The Institutional ownership of the firm is 81.60% while Insiders ownership is 0.50%. Company has kept return on investment (ROI) at 10.90% over the previous 12 months and has been able to maintain return on asset (ROA) at 7.30% for the last twelve months. Return on equity (ROE) recorded at 18.00%.

The Timken Company (TKR) stock recent traded volume stands with 724110 shares as compared with its average volume of 763.49K shares. The relative volume observed at 0.95.

Volume Interpretation:

Volume is simply the number of shares traded during a specified time frame (e.g., hour, day, week, month, etc). The analysis of volume is a basic yet very important element of technical analysis. Volume provides clues as to the intensity of a given price move. Low volume levels are characteristic of the indecisive expectations that typically occur during consolidation periods (i.e., periods where prices move sideways in a trading range). Low volume also often occurs during the indecisive period during market bottoms. High volume levels are characteristic of market tops when there is a strong consensus that prices will move higher. High volume levels are also very common at the beginning of new trends (i.e., when prices break out of a trading range). Just before market bottoms, volume will often increase due to panic-driven selling.

The current ratio of 2.7 is mainly used to give an idea of a company’s ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable). As such, current ratio can be used to make a rough estimate of a company’s financial health. The quick ratio of 1.4 is a measure of how well a company can meet its short-term financial liabilities with quick assets (cash and cash equivalents, short-term marketable securities, and accounts receivable). The higher the ratio, the more financially secure a company is in the short term. A common rule of thumb is that companies with a quick ratio of greater than 1.0 are sufficiently able to meet their short-term liabilities.

The long term debt/equity shows a value of 1.06 with a total debt/equity of 1.1. It gives the investors the idea on the company’s financial leverage, measured by apportioning total liabilities by its stockholders equity. It also illustrates how much debt the corporation is using to finance its assets in relation to the value represented in shareholders’ equity.

Moving Averages Fluctuations:

The highest trading profits are generally made in strongly trending markets, and the best way to detect trends, and changes in trends, is by the use of moving averages. Moving averages are average prices of a security or index over a specific time interval that is continually updated. Because prices are averaged, the daily fluctuations are dampened into a smoother line that better represents the current trend. The strength of the trend is indicated by the slope of the moving average, especially longer-term moving averages. Moving averages are also used in other technical indicators, such as Bollinger Bands, envelopes, and directional movement indicators.

Because moving averages are based on data in a preceding period, they are lagging indicators. They can only indicate a trend that is already in place. Moving averages based on shorter time spans more closely reflect the underlying current trend, but they are also more sensitive to the volatility of the markets, which can generate many false signals. To minimize false signals, especially in a whipsaw market that trades within a narrow range, multiple moving averages of different time spans are used together.

The Timken Company (TKR) stock moved down -3.56% in contrast to its 20 day moving average displaying short-term a downside movement of stock. It shifted -8.60% down its 50-day simple moving average. This is showing medium-term bearish trend based on SMA 50. The stock price went below -14.90% from its 200-day simple moving average identifying long-term declining trend.

Larry Spivey Category – Business

Larry Spivey also covers the business news across all market sectors. He also has an enormous knowledge of stock market.  He holds an MBA degree from University of Florida. He has more than 10 years of experience in writing financial and market news. Larry previously worked at a number of companies in different role including web developer, software engineer and product manager. He currently covers Business news section.

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