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

Regal Rexnord Corporation (NYSE:RRX)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $220.04, but opened at $192.97. Regal Rexnord shares last traded at $194.13, with a volume of 638,331 shares.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on RRX. Oppenheimer restated an “outperform” rating on shares of Regal Rexnord in a report on Friday, July 10th. Citigroup upped their price target on Regal Rexnord from $240.00 to $260.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Wolfe Research set a $250.00 price target on Regal Rexnord in a research note on Thursday, July 9th. KeyCorp lowered their price objective on Regal Rexnord from $265.00 to $240.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Wall Street Zen cut Regal Rexnord from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $244.92.

Regal Rexnord Stock Down 0.3%

The stock has a market cap of $11.88 billion, a price-to-earnings ratio of 36.66, a PEG ratio of 1.22 and a beta of 1.09. The stock has a 50 day simple moving average of $212.69 and a 200 day simple moving average of $202.95. The company has a quick ratio of 1.08, a current ratio of 2.28 and a debt-to-equity ratio of 0.66.

Regal Rexnord (NYSE:RRX) last issued its earnings results on Wednesday, August 5th. The company reported $2.99 earnings per share for the quarter, topping analysts’ consensus estimates of $2.58 by $0.41. Regal Rexnord had a return on equity of 9.93% and a net margin of 5.35%.The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the firm earned $2.48 earnings per share. Regal Rexnord’s revenue for the quarter was up 4.2% on a year-over-year basis. Regal Rexnord has set its FY 2026 guidance at 10.350-10.850 EPS. As a group, analysts expect that Regal Rexnord Corporation will post 10.65 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, September 30th. Regal Rexnord’s dividend payout ratio (DPR) is 32.56%.

Insider Activity

In related news, CEO Louis V. Pinkham sold 22,509 shares of the firm’s stock in a transaction dated 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 transaction, the chief executive officer owned 56,749 shares of the company’s stock, valued at approximately $12,012,628.32. This trade represents a 28.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of Regal Rexnord stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $213.85, for a total value of $277,363.45. Following the transaction, the director owned 5,503 shares of the company’s stock, valued at $1,176,816.55. This trade represents a 19.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 30,305 shares of company stock worth $6,341,869 over the last three months. 0.63% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Regal Rexnord

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of New York Mellon Corp bought a new position in shares of Regal Rexnord during the 2nd quarter worth approximately $449,281,000. Victory Capital Management Inc. grew its holdings in shares of Regal Rexnord by 42.6% in the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company’s stock valued at $793,983,000 after acquiring an additional 1,690,264 shares in the last quarter. Bessemer Group Inc. increased its position in shares of Regal Rexnord by 4,155.4% during the first quarter. Bessemer Group Inc. now owns 916,054 shares of the company’s stock valued at $171,541,000 after acquiring an additional 894,527 shares during the last quarter. Norges Bank purchased a new stake in shares of Regal Rexnord during the fourth quarter valued at approximately $121,301,000. Finally, Viking Global Investors LP lifted its holdings in Regal Rexnord by 25.7% during the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock worth $497,231,000 after acquiring an additional 701,145 shares during the period. 99.72% of the stock is owned by hedge funds and other institutional investors.

About Regal Rexnord

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.