Zacks Investment Research cut shares of Regal Beloit (NYSE:RBC) from a hold rating to a sell rating in a research note issued to investors on Thursday.

According to Zacks, “In the past month, Regal Beloit's shares have underperformed the industry. Currently, the company is grappling with adverse impacts of rising costs and expenses. In the third quarter of 2018, its costs of sales increased 8.4% year over year and gross margin was down 30 basis points (bps). Rising prices of both aluminum and steel on account of Section 232 tariff as well as secondary inflation impact on the purchase of certain other components that include aluminum and steel as inputs are creating problems. Further, headwinds like high customer concentration risks and cyclical nature of business, as well as high debt levels, might dent near-term results of the company. In the past 60 days, the company's earnings estimates declined for 2019.”

Other equities research analysts have also recently issued reports about the company. Royal Bank of Canada reaffirmed a buy rating and issued a $90.00 price objective (down from $95.00) on shares of Regal Beloit in a research note on Monday, November 5th. Wolfe Research cut Regal Beloit from an outperform rating to a market perform rating in a research note on Tuesday. CIBC reaffirmed a market perform rating on shares of Regal Beloit in a research note on Tuesday. BMO Capital Markets dropped their price objective on Regal Beloit to $83.00 and set a market perform rating for the company in a research note on Wednesday, November 7th. Finally, Oppenheimer cut Regal Beloit from an outperform rating to a market perform rating in a research note on Tuesday. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $89.13.

RBC stock traded down $0.70 during midday trading on Thursday, hitting $71.63. 219,789 shares of the company’s stock were exchanged, compared to its average volume of 267,649. The company has a quick ratio of 1.42, a current ratio of 2.61 and a debt-to-equity ratio of 0.54. The stock has a market cap of $3.10 billion, a price-to-earnings ratio of 14.71, a price-to-earnings-growth ratio of 1.10 and a beta of 1.47. Regal Beloit has a 1-year low of $66.04 and a 1-year high of $86.75.

Regal Beloit (NYSE:RBC) last posted its earnings results on Monday, November 5th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.61 by $0.06. The company had revenue of $925.40 million during the quarter, compared to analysts’ expectations of $924.18 million. Regal Beloit had a return on equity of 10.73% and a net margin of 6.34%. The firm’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.39 earnings per share. As a group, sell-side analysts anticipate that Regal Beloit will post 5.91 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, January 11th. Investors of record on Friday, December 28th will be paid a dividend of $0.28 per share. The ex-dividend date of this dividend is Thursday, December 27th. This represents a $1.12 annualized dividend and a yield of 1.56%. Regal Beloit’s payout ratio is 23.00%.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RBC. LSV Asset Management grew its stake in Regal Beloit by 15.9% during the 3rd quarter. LSV Asset Management now owns 1,387,151 shares of the industrial products company’s stock worth $114,370,000 after purchasing an additional 190,206 shares in the last quarter. Point72 Asset Management L.P. purchased a new stake in Regal Beloit during the 3rd quarter worth about $13,241,000. Walthausen & Co. LLC purchased a new stake in Regal Beloit during the 3rd quarter worth about $10,813,000. Morgan Stanley lifted its holdings in Regal Beloit by 120.9% during the 3rd quarter. Morgan Stanley now owns 226,691 shares of the industrial products company’s stock worth $18,691,000 after buying an additional 124,057 shares during the last quarter. Finally, Panagora Asset Management Inc. lifted its holdings in Regal Beloit by 104.7% during the 3rd quarter. Panagora Asset Management Inc. now owns 223,670 shares of the industrial products company’s stock worth $18,442,000 after buying an additional 114,397 shares during the last quarter. 92.65% of the stock is owned by hedge funds and other institutional investors.

Regal Beloit Company Profile

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.

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