It’s definitely too loose, there is No torque spec per say. I make all final torque settings with the cylinder in the bore.
1. Assemble everything back together, including spring, covers and c-clip.
2. Mount the hex portion in a vise.
3. Start tightening the nut in small increments and push down on the pump piston/release. As you tighten the nut, it’s squeezes the vee’s and increases cylinder wall pressure. You don’t want to over compress the seals to the point where they can’t overcome the spring. I’ve been doing it so long that it’s more of a feel, versus typing on keyboard. Once I’m happy with the feel, I dot punch where the nut meets the stem to prevent it from backing off.
Hope this helps.
I suppose it would be a good idea prior to reinstalling all the components and settings the compression to check the seals to make sure everything is in order. Always work from the bottom up when installing/removing the piston from the cylinder, Do NOT ever try to install/remove from the top side as it will damage the seals. It will require removing the splined pin, if it’s an older model.