Regal Beloit Corp. (RBC) Upgraded to Hold at Zacks Investment Research
Regal Beloit Corp. (NYSE:RBC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Regal Beloit’s long-term growth strategy involves organic growth through new product development, coupled with tactical investments in emerging markets through an aggressive acquisition policy. Regal Beloit continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. The company’s robust operating platform and an efficient management team are further expected to aid execution of its strategic priorities and drive net asset value. However, increased concentration risks and high R&D and integration costs related to its acquisitions reduce its profitability to some extent. The company has a dismal earnings history, having missed estimates thrice over the trailing four quarters. Regal Beloit’s earnings are susceptible to exchange rate volatility, which undermine its growth potential.”
A number of other analysts also recently issued reports on the stock. BMO Capital Markets downgraded shares of Regal Beloit Corp. from an “outperform” rating to a “market perform” rating and cut their price target for the stock from $76.00 to $66.00 in a report on Tuesday, August 2nd. TheStreet upgraded shares of Regal Beloit Corp. from a “hold” rating to a “buy” rating in a report on Thursday, August 18th. Jefferies Group restated a “hold” rating on shares of Regal Beloit Corp. in a report on Friday, July 1st. Finally, Credit Suisse Group AG restated a “buy” rating and set a $63.00 price target on shares of Regal Beloit Corp. in a report on Tuesday, August 9th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $64.25.
Shares of Regal Beloit Corp. (NYSE:RBC) traded up 1.114% during trading on Monday, reaching $57.706. 71,594 shares of the company were exchanged. The stock has a market capitalization of $2.58 billion, a P/E ratio of 18.210 and a beta of 1.69. The firm has a 50-day moving average price of $61.82 and a 200-day moving average price of $60.23. Regal Beloit Corp. has a 1-year low of $47.77 and a 1-year high of $68.45.
Regal Beloit Corp. (NYSE:RBC) last announced its quarterly earnings results on Monday, August 8th. The company reported $1.14 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.24 by $0.10. The firm had revenue of $838.60 million for the quarter, compared to analyst estimates of $857.88 million. Regal Beloit Corp. had a return on equity of 10.35% and a net margin of 4.30%. The firm’s quarterly revenue was down 11.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.53 EPS. Equities research analysts predict that Regal Beloit Corp. will post $4.39 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Friday, September 30th will be given a $0.24 dividend. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.96 annualized dividend and a yield of 1.66%. Regal Beloit Corp.’s dividend payout ratio is presently 30.28%.
In other Regal Beloit Corp. news, VP Terry R. Colvin sold 1,615 shares of the firm’s stock in a transaction that occurred on Thursday, August 11th. The shares were sold at an average price of $62.47, for a total value of $100,889.05. Following the completion of the transaction, the vice president now owns 21,146 shares of the company’s stock, valued at approximately $1,320,990.62. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 2.00% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in RBC. Nomura Holdings Inc. purchased a new stake in Regal Beloit Corp. during the second quarter valued at about $243,000. Mason Street Advisors LLC purchased a new stake in Regal Beloit Corp. during the second quarter valued at about $1,123,000. Royal Bank of Canada boosted its stake in Regal Beloit Corp. by 12.7% in the second quarter. Royal Bank of Canada now owns 472,864 shares of the company’s stock valued at $26,033,000 after buying an additional 53,260 shares during the period. Public Employees Retirement System of Ohio boosted its stake in Regal Beloit Corp. by 174.0% in the second quarter. Public Employees Retirement System of Ohio now owns 42,935 shares of the company’s stock valued at $2,364,000 after buying an additional 27,268 shares during the period. Finally, Schwab Charles Investment Management Inc. boosted its stake in Regal Beloit Corp. by 49.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 292,156 shares of the company’s stock valued at $16,084,000 after buying an additional 96,370 shares during the period. 96.07% of the stock is owned by institutional investors and hedge funds.
Regal Beloit Corp. Company Profile
Regal Beloit Corporation is a manufacturer of electric motors and controls, electric generators and controls, and power transmission products. The Company operates through three segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Its Commercial and Industrial Systems segment produces medium and large motors, commercial and industrial equipment, generator and custom drives and systems serving commercial heating, ventilation and air conditioning (HVAC), and power and oil and gas systems.
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