Rexnord (RXN) Lifted to Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of Rexnord (NYSE:RXN) from a hold rating to a buy rating in a report published on Wednesday morning. They currently have $32.00 price target on the industrial products company’s stock.

According to Zacks, “Year to date, Rexnord's shares have outperformed the industry. In second-quarter fiscal 2019, the company's adjusted earnings trumped the Zacks Consensus Estimate by 12.2% while grew 37.5% year over year on the back of solid top-line growth. The company expects to gain from product innovation, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. World Dryer and Centa Power buyouts are expected to boost the company's businesses while its plans to divest VAG operations are anticipated to free resources, which can be used for debt reduction. Core sales growth is predicted to be in a mid-single digit. In the past 60 days, earnings estimates on the stock improved for both fiscal 2019 and fiscal 2020.”

Several other research firms have also commented on RXN. Goldman Sachs Group began coverage on Rexnord in a research note on Tuesday, October 2nd. They issued a neutral rating and a $31.00 target price for the company. Oppenheimer upped their target price on Rexnord from $35.00 to $37.00 and gave the company a buy rating in a research note on Wednesday, October 10th. ValuEngine upgraded Rexnord from a hold rating to a buy rating in a research note on Friday, November 16th. Credit Suisse Group reiterated a neutral rating and issued a $31.00 target price on shares of Rexnord in a research note on Friday, November 23rd. Finally, TheStreet upgraded Rexnord from a c+ rating to a b- rating in a research note on Monday, December 3rd. Four equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus target price of $32.63.

Rexnord stock opened at $25.62 on Wednesday. The firm has a market capitalization of $2.77 billion, a P/E ratio of 18.43, a price-to-earnings-growth ratio of 0.92 and a beta of 1.49. Rexnord has a 52 week low of $23.75 and a 52 week high of $32.11. The company has a quick ratio of 1.50, a current ratio of 2.23 and a debt-to-equity ratio of 1.17.

Rexnord (NYSE:RXN) last released its earnings results on Tuesday, October 30th. The industrial products company reported $0.46 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.42 by $0.04. The firm had revenue of $524.80 million during the quarter, compared to analyst estimates of $516.66 million. Rexnord had a positive return on equity of 16.99% and a negative net margin of 0.89%. The business’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.32 earnings per share. Research analysts predict that Rexnord will post 1.75 EPS for the current year.

In other news, Director Theodore D. Crandall purchased 4,000 shares of the company’s stock in a transaction on Thursday, November 1st. The stock was bought at an average cost of $27.84 per share, for a total transaction of $111,360.00. Following the completion of the purchase, the director now directly owns 20,330 shares of the company’s stock, valued at approximately $565,987.20. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Craig Wehr sold 7,500 shares of the company’s stock in a transaction dated Friday, November 2nd. The stock was sold at an average price of $28.50, for a total value of $213,750.00. Following the sale, the insider now owns 15,054 shares of the company’s stock, valued at $429,039. The disclosure for this sale can be found here. Insiders have sold 29,964 shares of company stock valued at $850,167 over the last 90 days. 4.50% of the stock is currently owned by insiders.

Large investors have recently made changes to their positions in the business. SG Americas Securities LLC boosted its position in shares of Rexnord by 22.3% in the second quarter. SG Americas Securities LLC now owns 9,266 shares of the industrial products company’s stock worth $269,000 after buying an additional 1,692 shares during the period. DekaBank Deutsche Girozentrale purchased a new stake in shares of Rexnord in the third quarter worth about $290,000. Stone Ridge Asset Management LLC purchased a new stake in shares of Rexnord in the third quarter worth about $326,000. Jane Street Group LLC purchased a new stake in shares of Rexnord in the second quarter worth about $314,000. Finally, Credit Agricole S A boosted its position in shares of Rexnord by 25.5% in the second quarter. Credit Agricole S A now owns 14,049 shares of the industrial products company’s stock worth $408,000 after buying an additional 2,854 shares during the period.

Rexnord Company Profile

Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies.

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