Rexnord Corp. (RXN) Downgraded 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 research note 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%.”
Other equities analysts have also recently issued research reports about the stock. Credit Suisse Group AG reaffirmed a “buy” rating on shares of Rexnord Corp. in a research note on Saturday, July 9th. Barclays PLC boosted their price target on shares of Rexnord Corp. from $21.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Monday, July 18th. Finally, Robert W. Baird cut shares of Rexnord Corp. from an “outperform” rating to a “neutral” rating and set a $22.00 price target for the company. in a research note on Thursday, June 23rd. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and four have issued a buy rating to the company. Rexnord Corp. presently has a consensus rating of “Hold” and an average price target of $22.50.
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Rexnord Corp. (NYSE:RXN) traded up 0.26% during trading on Monday, hitting $19.23. 91,180 shares of the stock traded hands. The stock has a market cap of $1.98 billion, a PE ratio of 30.24 and a beta of 1.57. Rexnord Corp. has a 12 month low of $14.04 and a 12 month high of $22.97. The company has a 50-day moving average price of $20.84 and a 200-day moving average price of $20.91.
Rexnord Corp. (NYSE:RXN) last issued its quarterly earnings data on Monday, August 1st. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.30 by $0.05. The company earned $472 million during the quarter, compared to analysts’ expectations of $459.57 million. Rexnord Corp. had a net margin of 3.43% and a return on equity of 25.62%. Rexnord Corp.’s revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.30 earnings per share. Equities research analysts expect that Rexnord Corp. will post $1.51 EPS for the current year.
In other Rexnord Corp. news, Director David C. Longren acquired 2,000 shares of the business’s stock in a transaction dated Thursday, August 11th. The stock was bought at an average price of $21.39 per share, with a total value of $42,780.00. Following the purchase, the director now owns 8,467 shares of the company’s stock, valued at $181,109.13. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.40% of the stock is currently owned by insiders.
Large investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC boosted its stake in shares of Rexnord Corp. by 6,055.4% in the second quarter. Tower Research Capital LLC TRC now owns 6,217 shares of the company’s stock worth $122,000 after buying an additional 6,116 shares during the period. BNP Paribas Arbitrage SA boosted its stake in shares of Rexnord Corp. by 152.9% in the second quarter. BNP Paribas Arbitrage SA now owns 9,853 shares of the company’s stock worth $193,000 after buying an additional 5,957 shares during the period. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Rexnord Corp. during the first quarter worth about $222,000. Clinton Group Inc. acquired a new stake in shares of Rexnord Corp. during the second quarter worth about $224,000. Finally, Princeton Alpha Management LP acquired a new stake in shares of Rexnord Corp. during the second quarter worth about $231,000. 97.01% of the stock is owned by institutional investors.
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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