Timken Co (TKR): Relational Investors Further Cuts Its Stake

Relational Investors has cut another slice from Timken Co (NYSE:TKR) stake, selling 1.4 million shares in the open market at an average price of $46.40 per share. The investor still remains a majority shareholder in the company with close to 5 million shares, which constitutes 5.41% of the company’s outstanding shares. According to a transaction report, half of the shares were sold at an average price of $47.45, and the other half at $45.25.

Ralph V. Whitworth

Relational Investors and its manager, Ralph V. Whitworth, are probably seeking to exit the stock, given that the current cut is the second in less than a month. On July 10, the investor decreased its stake from 9% to 7%, selling around 2 million shares.

Timken Co (NYSE:TKR) has recently spun-off its steel business, acquiescing to the hedge fund’s request. After the split, Ralph V. Whitworth’s Relational received 1.3 million or around 3% of the outstanding shares in the newly created company Timkensteel Corp (NYSE:TMST).  It is possible that the investor will continue to buy more of Timkensteel Corp (NYSE:TMST) shares with the proceeds from selling stock in the parent company.

Timken Co (NYSE:TKR), an industrial company manufacturing products for friction management and mechanical power transmission, issued its second quarter results on July 30, reporting lower than expected net income of $62.7 million, or $0.68 per diluted share on sales of $789 million, citing a fall in demand for its ball bearings and power transmission components.  The stock fell around 5% on the news, but has rebounded somewhat and trades now at $45.68. Despite the bleak results in the first half of the year, Timken Co (NYSE:TKR)’s management had remained optimistic, saying that it is winning new OE and aftermarket business in both Mobile and Process Industries Segments.

Other notable investors that hold important stakes in Timken Co (NYSE:TKR) are Richard Chilton’s Chilton Investment Company with 1.1 million shares, worth $50 million, and Cliff Asness’  Aqr Capital Management  who owns 900,000 shares with a market value of $45 million, as of the end of the first quarter. Also worth noticing, Mario Gabelli is bullish on the stock as well, with his fund Gamco Investors holding around 600,000 shares valued at $27 million as of the end of March.

Disclosure: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!