Regal Rexnord Corporation (NYSE:RRX) Receives $227.50 Average Price Target from Brokerages

Regal Rexnord Corporation (NYSE:RRX) has received an average recommendation of “Moderate Buy” from the ten analysts that are covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $227.50.

Several research firms recently weighed in on RRX. Zacks Research raised shares of Regal Rexnord from a “strong sell” rating to a “hold” rating in a research note on Tuesday, December 30th. Robert W. Baird set a $253.00 price objective on Regal Rexnord in a report on Friday, February 6th. Citigroup lifted their price target on shares of Regal Rexnord from $180.00 to $230.00 and gave the company a “buy” rating in a research note on Monday, February 9th. Jefferies Financial Group downgraded shares of Regal Rexnord from a “buy” rating to a “hold” rating and decreased their price objective for the company from $170.00 to $160.00 in a research report on Wednesday, December 10th. Finally, KeyCorp raised their price target on Regal Rexnord from $200.00 to $255.00 and gave the company an “overweight” rating in a report on Tuesday, February 10th.

Regal Rexnord Stock Down 6.1%

RRX opened at $186.78 on Monday. The firm has a market cap of $12.42 billion, a price-to-earnings ratio of 44.47, a PEG ratio of 1.73 and a beta of 1.05. The firm’s 50-day simple moving average is $181.64 and its 200-day simple moving average is $156.81. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.10 and a current ratio of 2.15. Regal Rexnord has a twelve month low of $90.56 and a twelve month high of $229.30.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings results on Thursday, February 5th. The company reported $2.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.47 by $0.04. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The business had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.54 billion. During the same period in the previous year, the business posted $2.34 earnings per share. The firm’s revenue for the quarter was up 4.3% compared to the same quarter last year. Equities research analysts anticipate that Regal Rexnord will post 9.95 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 14th. Investors of record on Tuesday, March 31st will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.40 annualized dividend and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is currently 33.33%.

Insiders Place Their Bets

In related news, CEO Louis V. Pinkham sold 36,728 shares of the company’s stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $215.52, for a total transaction of $7,915,618.56. Following the completion of the transaction, the chief executive officer directly owned 83,337 shares in the company, valued at $17,960,790.24. This represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Cheryl Lewis sold 2,262 shares of the company’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $215.73, for a total value of $487,981.26. Following the completion of the transaction, the executive vice president directly owned 13,219 shares of the company’s stock, valued at approximately $2,851,734.87. The trade was a 14.61% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 53,451 shares of company stock worth $11,386,689. Insiders own 0.82% of the company’s stock.

Institutional Trading of Regal Rexnord

Large investors have recently bought and sold shares of the company. Victory Capital Management Inc. increased its holdings in Regal Rexnord by 138.4% during the 3rd quarter. Victory Capital Management Inc. now owns 3,968,101 shares of the company’s stock worth $566,981,000 after acquiring an additional 2,303,373 shares during the period. Norges Bank purchased a new stake in shares of Regal Rexnord in the 2nd quarter valued at $256,155,000. Viking Global Investors LP grew its stake in shares of Regal Rexnord by 25.7% during the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock valued at $497,231,000 after buying an additional 701,145 shares during the last quarter. Nordea Investment Management AB increased its stake in Regal Rexnord by 30.7% in the 3rd quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company’s stock worth $289,083,000 after purchasing an additional 476,802 shares during the period. Finally, Invesco Ltd. increased its stake in shares of Regal Rexnord by 27.1% in the fourth quarter. Invesco Ltd. now owns 1,905,828 shares of the company’s stock worth $267,426,000 after buying an additional 405,828 shares during the period. 99.72% of the stock is owned by hedge funds and other institutional investors.

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.