Regal Beloit (RBC) Upgraded to “Buy” by Zacks Investment Research

Regal Beloit (NYSE:RBC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm presently has a $85.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 14.32% from the stock’s current price.

According to Zacks, “Regal Beloit reported decent fourth-quarter 2017 results with adjusted earnings in line with the Zacks Consensus Estimate, on the back of modest organic growth and positive order trends. Over the years, the company has consolidated its product lines and streamlined product brands to evolve as a dynamic enterprise. In order to drive continuous improvement, Regal Beloit continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. Regal Beloit continues to focus on simplification initiatives to lower operating costs and improve margins in the future. The company expects organic growth for 2018 in low single digits with healthy demand trends. However, margin pressures, high concentration risks and adverse foreign currency translation remain headwinds. Regal Beloit has also underperformed the industry in the last three months.”

Several other equities analysts have also recently commented on the company. Barrington Research reaffirmed an “outperform” rating and issued a $87.00 price target on shares of Regal Beloit in a report on Monday. Seaport Global Securities raised Regal Beloit from a “neutral” rating to a “buy” rating and upped their price target for the company from $82.00 to $88.00 in a report on Wednesday, February 7th. ValuEngine raised Regal Beloit from a “hold” rating to a “buy” rating in a report on Tuesday, December 19th. Royal Bank of Canada reaffirmed a “buy” rating and issued a $90.00 price target on shares of Regal Beloit in a report on Tuesday, November 28th. Finally, BMO Capital Markets cut their price target on Regal Beloit from $88.00 to $85.00 and set a “market perform” rating for the company in a report on Tuesday, November 7th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and nine have assigned a buy rating to the company. The stock has an average rating of “Buy” and an average price target of $86.64.

Regal Beloit (NYSE RBC) traded down $1.65 during trading on Tuesday, reaching $74.35. The company’s stock had a trading volume of 131,162 shares, compared to its average volume of 355,581. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.15 and a current ratio of 2.21. The firm has a market cap of $3,329.45, a PE ratio of 15.73, a price-to-earnings-growth ratio of 1.22 and a beta of 1.44. Regal Beloit has a 12-month low of $71.05 and a 12-month high of $87.50.

Regal Beloit (NYSE:RBC) last posted its quarterly earnings results on Monday, February 5th. The industrial products company reported $1.14 EPS for the quarter, beating the consensus estimate of $1.13 by $0.01. The firm had revenue of $820.70 million during the quarter, compared to analysts’ expectations of $794.65 million. Regal Beloit had a return on equity of 9.64% and a net margin of 6.34%. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.04 EPS. sell-side analysts expect that Regal Beloit will post 5.59 earnings per share for the current year.

Several institutional investors and hedge funds have recently modified their holdings of RBC. LSV Asset Management raised its holdings in shares of Regal Beloit by 133.6% in the 4th quarter. LSV Asset Management now owns 543,660 shares of the industrial products company’s stock worth $41,644,000 after buying an additional 310,927 shares in the last quarter. Principal Financial Group Inc. grew its position in Regal Beloit by 133.4% during the 3rd quarter. Principal Financial Group Inc. now owns 444,149 shares of the industrial products company’s stock worth $35,088,000 after acquiring an additional 253,888 shares during the last quarter. BlackRock Inc. grew its position in Regal Beloit by 4.3% during the 4th quarter. BlackRock Inc. now owns 4,243,407 shares of the industrial products company’s stock worth $325,044,000 after acquiring an additional 173,534 shares during the last quarter. New Amsterdam Partners LLC NY bought a new stake in Regal Beloit during the 4th quarter worth approximately $5,520,000. Finally, Prudential Financial Inc. grew its position in Regal Beloit by 11.4% during the 3rd quarter. Prudential Financial Inc. now owns 630,849 shares of the industrial products company’s stock worth $49,837,000 after acquiring an additional 64,750 shares during the last quarter. 94.75% of the stock is owned by institutional investors and hedge funds.

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About Regal Beloit

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque.

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