Regal Rexnord (NYSE:RRX) Sets New 1-Year High After Better-Than-Expected Earnings

Regal Rexnord Corporation (NYSE:RRX) hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $232.67 and last traded at $231.6080, with a volume of 46521 shares. The stock had previously closed at $222.02.

The company reported $2.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.11 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.43 billion. Regal Rexnord had a return on equity of 9.51% and a net margin of 4.78%.The business’s revenue was up 4.3% on a year-over-year basis. During the same period last year, the business earned $2.15 earnings per share. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS.

Regal Rexnord Announces Dividend

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

Wall Street Analyst Weigh In

RRX has been the topic of a number of research analyst reports. Oppenheimer increased their price target on Regal Rexnord from $180.00 to $225.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. KeyCorp increased their price target on Regal Rexnord from $255.00 to $265.00 and gave the stock an “overweight” rating in a research report on Thursday. Robert W. Baird set a $253.00 price target on Regal Rexnord in a research report on Friday, February 6th. JPMorgan Chase & Co. increased their price target on Regal Rexnord from $190.00 to $230.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th. Finally, Barclays increased their price target on Regal Rexnord from $237.00 to $245.00 and gave the stock an “overweight” rating in a research report on Monday, March 23rd. Six investment 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 presently has an average rating of “Moderate Buy” and an average price target of $231.00.

Insiders Place Their Bets

In other Regal Rexnord news, EVP Cheryl Lewis sold 2,262 shares of the company’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $215.73, for a total transaction of $487,981.26. Following the transaction, the executive vice president owned 13,219 shares of the company’s stock, valued at approximately $2,851,734.87. This represents a 14.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Louis V. Pinkham sold 36,728 shares of the company’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $215.52, for a total value of $7,915,618.56. Following the transaction, the chief executive officer directly owned 83,337 shares in the company, valued at approximately $17,960,790.24. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 48,951 shares of company stock valued at $10,576,689. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RRX. AIA Group Ltd acquired a new position in shares of Regal Rexnord in the 3rd quarter valued at $1,477,000. Oppenheimer Asset Management Inc. lifted its stake in shares of Regal Rexnord by 475.2% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 21,991 shares of the company’s stock valued at $3,154,000 after purchasing an additional 18,168 shares during the period. American Century Companies Inc. acquired a new position in shares of Regal Rexnord in the 3rd quarter valued at $47,778,000. Nordea Investment Management AB lifted its stake in shares of Regal Rexnord by 30.7% in the 3rd quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company’s stock valued at $289,083,000 after purchasing an additional 476,802 shares during the period. Finally, JPMorgan Chase & Co. lifted its stake in shares of Regal Rexnord by 97.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 260,853 shares of the company’s stock valued at $37,419,000 after purchasing an additional 128,468 shares during the period. Institutional investors and hedge funds own 99.72% of the company’s stock.

Regal Rexnord Stock Performance

The stock has a 50 day moving average price of $200.38 and a two-hundred day moving average price of $172.61. 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 company has a market cap of $14.31 billion, a price-to-earnings ratio of 50.00, a P/E/G ratio of 2.16 and a beta of 1.15.

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.