Regal Rexnord (NYSE:RRX) Shares Gap Down – Here’s Why

Regal Rexnord Corporation (NYSE:RRX) gapped down prior to trading on Thursday . The stock had previously closed at $231.37, but opened at $211.17. Regal Rexnord shares last traded at $205.5220, with a volume of 537,988 shares trading hands.

More Regal Rexnord News

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Q1 results beat consensus — Q1 adjusted EPS $2.17 vs. $2.11 expected and revenue $1.48B vs. $1.43B; daily orders and backlog rose, with AMC orders up >34%, indicating demand strength across end markets. Q1 Results Release
• Neutral Sentiment: Management is engaging investors — Regal participated in an Oppenheimer fireside chat and investor meetings (May 8), making management accessible for questions on strategy and outlook. Conference Participation
• Neutral Sentiment: Leadership succession announced — Aamir Paul was named next CEO. Succession clarity reduces long‑term governance uncertainty but investors will monitor execution under new leadership. Q1 & Leadership Release
• Negative Sentiment: FY‑2026 guidance came in modestly below consensus — the company gave an EPS range of 10.20–11.00 versus a consensus ~10.69, which likely disappointed some investors and pressured the stock despite the quarter beat. Guidance & Q1 Release
• Negative Sentiment: Margin and mix signals — adjusted EBITDA was slightly below last year and management flagged headwinds in long‑cycle projects; investors may be concerned about near‑term margin pressure even as orders grow. Earnings Details

Analyst Upgrades and Downgrades

RRX has been the topic of a number of recent analyst reports. Robert W. Baird set a $253.00 price target on shares of Regal Rexnord in a research report on Friday, February 6th. Citigroup lifted their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. JPMorgan Chase & Co. upped their price target on shares of Regal Rexnord from $190.00 to $230.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Barclays increased their price target on Regal Rexnord from $237.00 to $245.00 and gave the stock an “overweight” rating in a report on Monday, March 23rd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Regal Rexnord in a research note on Tuesday, April 21st. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $231.00.

Regal Rexnord Price Performance

The business has a 50-day moving average of $200.72 and a 200 day moving average of $172.14. The company has a current ratio of 2.15, a quick ratio of 1.10 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $13.73 billion, a P/E ratio of 49.11, a price-to-earnings-growth ratio of 2.07 and a beta of 1.15.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings data on Thursday, May 7th. The company reported $2.17 earnings per share for the quarter, beating analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. The business’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the firm earned $2.15 earnings per share. On average, sell-side analysts predict that Regal Rexnord Corporation will post 10.73 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord’s payout ratio is currently 33.33%.

Insider Activity

In related news, CFO Robert Rehard sold 7,704 shares of the firm’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $216.72, for a total transaction of $1,669,610.88. Following the transaction, the chief financial officer directly owned 34,154 shares of the company’s stock, valued at $7,401,854.88. This trade represents a 18.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Louis V. Pinkham sold 36,728 shares of the business’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $215.52, for a total transaction of $7,915,618.56. Following the transaction, the chief executive officer owned 83,337 shares in the company, valued at approximately $17,960,790.24. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 48,951 shares of company stock worth $10,576,689 over the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Regal Rexnord

Hedge funds have recently modified their holdings of the company. IFP Advisors Inc grew its holdings in shares of Regal Rexnord by 34.0% in the fourth quarter. IFP Advisors Inc now owns 193 shares of the company’s stock valued at $27,000 after acquiring an additional 49 shares in the last quarter. Parallel Advisors LLC lifted its holdings in Regal Rexnord by 5.6% during the first quarter. Parallel Advisors LLC now owns 938 shares of the company’s stock worth $176,000 after acquiring an additional 50 shares during the period. Northwestern Mutual Investment Management Company LLC boosted its position in Regal Rexnord by 0.4% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 14,855 shares of the company’s stock worth $2,084,000 after purchasing an additional 60 shares during the last quarter. UMB Bank n.a. boosted its position in Regal Rexnord by 6.2% in the fourth quarter. UMB Bank n.a. now owns 1,023 shares of the company’s stock worth $144,000 after purchasing an additional 60 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC grew its stake in Regal Rexnord by 3.2% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 2,092 shares of the company’s stock valued at $392,000 after purchasing an additional 65 shares during the period. Institutional investors own 99.72% of the company’s stock.

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.