Rexnord Corp. (RXN) Cut to Sell at Zacks Investment Research
Rexnord Corp. (NYSE:RXN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.
According to Zacks, “We believe that positive impacts from Rexnord's solid business portfolio, rising demand from non-residential construction markets in the U.S. and potential benefits from its acquired Cambridge International assets and divested Rodney Hunt Fontaine (RHF) product line are more-than-offset by exposure to near-term headwinds. Forex woes, active industry rivalry, rising debt level and dependence on few large customers for a major portion of revenues are a prime concerning factor for the company. For fiscal 2017, weakness in the industrial end-markets is expected to partially offset the top-line growth. Core sales are predicted to decline 2% to improve 1%.”
Several other brokerages have also issued reports on RXN. Barclays PLC boosted their price target on Rexnord Corp. from $21.00 to $23.00 and gave the company an “equal weight” rating in a research note on Monday, July 18th. Robert W. Baird downgraded Rexnord Corp. from an “outperform” rating to a “neutral” rating and set a $22.00 price objective on the stock. in a report on Thursday, June 23rd. Finally, Credit Suisse Group AG reaffirmed a “buy” rating on shares of Rexnord Corp. in a report on Saturday, July 9th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and four have given a buy rating to the stock. Rexnord Corp. currently has an average rating of “Hold” and a consensus target price of $22.50.
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Rexnord Corp. (NYSE:RXN) traded up 0.42% during mid-day trading on Monday, reaching $19.26. The company had a trading volume of 97,101 shares. The company’s 50 day moving average is $20.84 and its 200 day moving average is $20.91. The stock has a market capitalization of $1.98 billion, a price-to-earnings ratio of 30.28 and a beta of 1.57. Rexnord Corp. has a 52-week low of $14.04 and a 52-week high of $22.97.
Rexnord Corp. (NYSE:RXN) last issued its quarterly earnings results on Monday, August 1st. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.05. Rexnord Corp. had a return on equity of 25.62% and a net margin of 3.43%. The firm had revenue of $472 million for the quarter, compared to analyst estimates of $459.57 million. During the same period in the previous year, the company posted $0.30 earnings per share. The company’s quarterly revenue was down 2.7% compared to the same quarter last year. Equities analysts predict that Rexnord Corp. will post $1.51 earnings per share for the current year.
In other Rexnord Corp. news, Director David C. Longren bought 2,000 shares of Rexnord Corp. stock in a transaction dated Thursday, August 11th. The shares were acquired at an average cost of $21.39 per share, with a total value of $42,780.00. Following the acquisition, the director now directly owns 8,467 shares of the company’s stock, valued at $181,109.13. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.40% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its position in shares of Rexnord Corp. by 11.4% in the first quarter. BlackRock Inc. now owns 44,749 shares of the company’s stock valued at $905,000 after buying an additional 4,572 shares during the last quarter. Princeton Alpha Management LP purchased a new position in Rexnord Corp. during the second quarter valued at about $231,000. BNP Paribas Arbitrage SA increased its position in Rexnord Corp. by 152.9% in the second quarter. BNP Paribas Arbitrage SA now owns 9,853 shares of the company’s stock valued at $193,000 after buying an additional 5,957 shares in the last quarter. Boothbay Fund Management LLC purchased a new position in Rexnord Corp. during the first quarter valued at about $1,085,000. Finally, LMR Partners LLP purchased a new position in Rexnord Corp. during the second quarter valued at about $357,000. 97.01% of the stock is currently owned by institutional investors and hedge funds.
Rexnord Corp. Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems.
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