Rexnord (RXN) Upgraded by Zacks Investment Research to “Buy”
Rexnord (NYSE:RXN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The firm currently has a $32.00 target price on the industrial products company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 21.03% from the stock’s current price.
According to Zacks, “Year to date, Rexnord's shares have outperformed the industry. In second-quarter fiscal 2019, the company's adjusted earnings trumped the Zacks Consensus Estimate by 12.2% while grew 37.5% year over year on the back of solid top-line growth. The company expects to gain from product innovation, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. World Dryer and Centa Power buyouts are expected to boost the company's businesses while its plans to divest VAG operations are anticipated to free resources, which can be used for debt reduction. Core sales growth is predicted to be in a mid-single digit. In the past 60 days, earnings estimates on the stock improved for both fiscal 2019 and fiscal 2020.”
Several other analysts have also recently weighed in on the stock. TheStreet upgraded shares of Rexnord from a “c+” rating to a “b-” rating in a research note on Monday. ValuEngine cut shares of Rexnord from a “buy” rating to a “hold” rating in a research note on Tuesday, November 27th. Credit Suisse Group reiterated a “neutral” rating and issued a $31.00 price objective on shares of Rexnord in a research note on Friday, November 23rd. Oppenheimer lifted their price objective on shares of Rexnord from $35.00 to $37.00 and gave the stock a “buy” rating in a research note on Wednesday, October 10th. Finally, Goldman Sachs Group assumed coverage on shares of Rexnord in a research note on Tuesday, October 2nd. They issued a “neutral” rating and a $31.00 price objective for the company. Four research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $32.63.
Rexnord (NYSE:RXN) last posted its earnings results on Tuesday, October 30th. The industrial products company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04. The company had revenue of $524.80 million during the quarter, compared to analysts’ expectations of $516.66 million. Rexnord had a negative net margin of 0.89% and a positive return on equity of 16.99%. Rexnord’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.32 EPS. As a group, equities research analysts expect that Rexnord will post 1.75 earnings per share for the current year.
In other news, Director Theodore D. Crandall bought 4,000 shares of the company’s stock in a transaction dated Thursday, November 1st. The stock was bought at an average cost of $27.84 per share, for a total transaction of $111,360.00. Following the transaction, the director now owns 20,330 shares of the company’s stock, valued at $565,987.20. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Craig Wehr sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $28.99, for a total transaction of $217,425.00. Following the completion of the transaction, the insider now owns 15,054 shares of the company’s stock, valued at $436,415.46. The disclosure for this sale can be found here. Insiders sold a total of 29,964 shares of company stock valued at $850,167 in the last quarter. Corporate insiders own 4.50% of the company’s stock.
Several large investors have recently modified their holdings of RXN. SG Americas Securities LLC raised its position in shares of Rexnord by 22.3% in the 2nd quarter. SG Americas Securities LLC now owns 9,266 shares of the industrial products company’s stock valued at $269,000 after buying an additional 1,692 shares in the last quarter. DekaBank Deutsche Girozentrale acquired a new position in shares of Rexnord in the 3rd quarter valued at approximately $290,000. Jane Street Group LLC acquired a new position in shares of Rexnord in the 2nd quarter valued at approximately $314,000. Stone Ridge Asset Management LLC acquired a new position in shares of Rexnord in the 3rd quarter valued at approximately $326,000. Finally, Credit Agricole S A raised its position in shares of Rexnord by 25.5% in the 2nd quarter. Credit Agricole S A now owns 14,049 shares of the industrial products company’s stock valued at $408,000 after buying an additional 2,854 shares in the last quarter.
Rexnord Company Profile
Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies.
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