Regal Rexnord (NYSE:RRX) Cut to “Buy” at Wall Street Zen

Wall Street Zen cut shares of Regal Rexnord (NYSE:RRX) from a strong-buy rating to a buy rating in a research report report published on Saturday morning.

Several other equities analysts have also commented on the company. KeyCorp boosted their price target on Regal Rexnord from $255.00 to $265.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Barclays increased their price objective on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an “overweight” rating in a research report on Monday, March 23rd. Wolfe Research set a $250.00 price objective on shares of Regal Rexnord in a research note on Thursday, July 9th. UBS Group set a $260.00 target price on shares of Regal Rexnord in a research report on Monday, June 15th. Finally, DA Davidson started coverage on shares of Regal Rexnord in a research note on Tuesday, June 16th. They issued a “buy” rating and a $260.00 target price for the company. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $247.00.

Regal Rexnord Stock Down 0.5%

Shares of NYSE RRX opened at $205.69 on Friday. The stock has a fifty day moving average price of $211.65 and a 200 day moving average price of $198.10. The company has a current ratio of 2.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.69. Regal Rexnord has a 12-month low of $127.96 and a 12-month high of $247.80. The company has a market cap of $13.69 billion, a P/E ratio of 47.83, a P/E/G ratio of 1.94 and a beta of 1.08.

Regal Rexnord (NYSE:RRX) last issued its quarterly earnings data on Thursday, May 7th. The company reported $2.17 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.43 billion. During the same quarter in the previous year, the firm posted $2.15 earnings per share. The firm’s quarterly revenue was up 4.3% on a year-over-year basis. Research analysts anticipate that Regal Rexnord will post 10.64 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th were issued a $0.35 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is currently 32.56%.

Insider Buying and Selling at Regal Rexnord

In other Regal Rexnord news, CFO Robert Rehard sold 6,499 shares of Regal Rexnord stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the sale, the chief financial officer directly owned 27,965 shares in the company, valued at $5,593,000. The trade was a 18.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Louis V. Pinkham sold 22,509 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.68, for a total value of $4,764,705.12. Following the completion of the transaction, the chief executive officer directly owned 56,749 shares in the company, valued at approximately $12,012,628.32. The trade was a 28.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 30,305 shares of company stock worth $6,341,869 in the last 90 days. 0.63% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RRX. Victory Capital Management Inc. raised its holdings in shares of Regal Rexnord by 42.6% during the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company’s stock valued at $793,983,000 after buying an additional 1,690,264 shares during the last quarter. Bank of New York Mellon Corp raised its stake in Regal Rexnord by 115.5% during the 1st quarter. Bank of New York Mellon Corp now owns 1,836,264 shares of the company’s stock valued at $343,859,000 after acquiring an additional 984,185 shares in the last quarter. Bessemer Group Inc. boosted its position in Regal Rexnord by 4,155.4% during the 1st quarter. Bessemer Group Inc. now owns 916,054 shares of the company’s stock worth $171,541,000 after acquiring an additional 894,527 shares during the period. Norges Bank acquired a new position in Regal Rexnord during the 4th quarter worth $121,301,000. Finally, Viking Global Investors LP grew its stake in shares of Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock worth $497,231,000 after purchasing an additional 701,145 shares in the last quarter. 99.72% of the stock is currently owned by institutional investors.

Regal Rexnord Company Profile

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.