Wall Street Zen Downgrades Regal Rexnord (NYSE:RRX) to Buy

Wall Street Zen lowered shares of Regal Rexnord (NYSE:RRX) from a strong-buy rating to a buy rating in a report released on Saturday morning.

RRX has been the subject of several other research reports. Robert W. Baird upped their price target on shares of Regal Rexnord from $167.00 to $172.00 and gave the company an “outperform” rating in a report on Wednesday, May 7th. Barclays upped their price target on shares of Regal Rexnord from $160.00 to $165.00 and gave the company an “overweight” rating in a report on Wednesday, July 9th. The Goldman Sachs Group upped their price target on shares of Regal Rexnord from $173.00 to $195.00 and gave the company a “buy” rating in a report on Tuesday, July 8th. Citigroup reiterated a “buy” rating and issued a $165.00 price target (up previously from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. Finally, KeyCorp set a $180.00 price target on shares of Regal Rexnord and gave the company an “overweight” rating in a report on Thursday, June 26th. Nine investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $185.25.

Regal Rexnord Stock Down 1.7%

Shares of NYSE RRX opened at $145.74 on Friday. The stock has a market cap of $9.67 billion, a P/E ratio of 38.76, a P/E/G ratio of 1.47 and a beta of 1.18. The firm has a 50 day moving average price of $147.25 and a 200 day moving average price of $132.32. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 2.00. Regal Rexnord has a 52-week low of $90.56 and a 52-week high of $185.28.

Regal Rexnord (NYSE:RRX) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $2.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.42 by $0.06. The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.50 billion. Regal Rexnord had a net margin of 4.28% and a return on equity of 9.73%. The business’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.29 earnings per share. Analysts expect that Regal Rexnord will post 9.95 EPS for the current year.

Regal Rexnord Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 30th. Regal Rexnord’s payout ratio is currently 37.23%.

Institutional Trading of Regal Rexnord

A number of institutional investors have recently made changes to their positions in RRX. Norges Bank bought a new stake in shares of Regal Rexnord in the second quarter worth $256,155,000. Nordea Investment Management AB bought a new stake in shares of Regal Rexnord in the second quarter worth $224,889,000. Nuveen LLC bought a new stake in shares of Regal Rexnord in the first quarter worth $117,996,000. Viking Global Investors LP lifted its position in shares of Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock worth $497,231,000 after purchasing an additional 701,145 shares in the last quarter. Finally, Invesco Ltd. raised its position in Regal Rexnord by 76.3% during the first quarter. Invesco Ltd. now owns 932,829 shares of the company’s stock worth $106,203,000 after acquiring an additional 403,845 shares in the last quarter. Institutional investors own 99.72% of the company’s stock.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.