Regal Rexnord (NYSE:RRX) Shares Gap Up Following Earnings Beat

Shares of Regal Rexnord Corporation (NYSE:RRX) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $178.30, but opened at $190.00. Regal Rexnord shares last traded at $195.8410, with a volume of 1,052,303 shares changing hands.

The company reported $2.51 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.04. The business had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. The business’s revenue was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.34 EPS. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS.

Regal Rexnord Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 14th. Investors of record on Tuesday, March 31st will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is currently 33.33%.

Key Regal Rexnord News

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Huge data‑center traction — management highlighted data‑center E‑Pod wins worth about $735M and said initial E‑Pod shipments are expected to start in early 2027, supporting longer‑term secular growth and a much larger backlog. PR Newswire: Q4 results & data center orders
• Positive Sentiment: Earnings beat and margin expansion — Q4 adjusted EPS of $2.51 topped expectations and adjusted gross margin improved ~50 bps year‑over‑year; adjusted EBITDA and net income were up, signaling improving profitability. Zacks: Q4 earnings surpass estimates
• Positive Sentiment: Analyst support — JPMorgan raised its price target from $190 to $230 and kept an overweight rating, providing near‑term upside and institutional validation for the growth story. Benzinga: JPMorgan raises PT
• Positive Sentiment: Dividend announced — the company declared a $0.35 dividend, which can attract income‑seeking investors and signals confidence in cash flow. Yahoo Finance: Dividend announced
• Neutral Sentiment: FY2026 guidance provided — management set EPS guidance of $10.20–$11.00, which roughly brackets consensus; guidance shows strong profitability expectations but the range is wider/lower than some sell‑side midpoints. Regal Rexnord press release / slide deck
• Negative Sentiment: Revenue slightly missed estimates — Q4 sales of ~$1.52B were a touch below consensus (~$1.54B), which tempered the topline narrative despite the EPS beat. MSN: Q4 revenue miss

Wall Street Analyst Weigh In

A number of brokerages recently commented on RRX. Oppenheimer raised their price target on Regal Rexnord from $180.00 to $225.00 and gave the stock an “outperform” rating in a research report on Friday. Jefferies Financial Group downgraded shares of Regal Rexnord from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $170.00 to $160.00 in a research note on Wednesday, December 10th. Zacks Research upgraded shares of Regal Rexnord from a “strong sell” rating to a “hold” rating in a research report on Tuesday, December 30th. Citigroup upped their price target on shares of Regal Rexnord from $175.00 to $180.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Finally, KeyCorp set a $200.00 price objective on shares of Regal Rexnord in a research note on Thursday. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $197.88.

Insider Activity at Regal Rexnord

In other news, Director Curtis W. Stoelting sold 4,500 shares of Regal Rexnord stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $180.00, for a total transaction of $810,000.00. Following the transaction, the director owned 15,617 shares in the company, valued at approximately $2,811,060. The trade was a 22.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Louis V. Pinkham sold 35,935 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $146.20, for a total transaction of $5,253,697.00. Following the completion of the sale, the chief executive officer directly owned 103,262 shares in the company, valued at approximately $15,096,904.40. This represents a 25.82% decrease in their position. The SEC filing for this sale provides additional information. 0.82% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. AQR Capital Management LLC grew its position in shares of Regal Rexnord by 208.1% in the 1st quarter. AQR Capital Management LLC now owns 17,747 shares of the company’s stock valued at $2,011,000 after buying an additional 11,987 shares during the last quarter. Jones Financial Companies Lllp boosted its stake in shares of Regal Rexnord by 91.6% in the 1st quarter. Jones Financial Companies Lllp now owns 617 shares of the company’s stock valued at $70,000 after purchasing an additional 295 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Regal Rexnord by 135.1% during the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock worth $25,000 after buying an additional 127 shares during the period. Janney Montgomery Scott LLC raised its stake in Regal Rexnord by 7.0% during the second quarter. Janney Montgomery Scott LLC now owns 4,406 shares of the company’s stock worth $639,000 after buying an additional 287 shares during the last quarter. Finally, KLP Kapitalforvaltning AS lifted its holdings in Regal Rexnord by 2.2% in the second quarter. KLP Kapitalforvaltning AS now owns 13,803 shares of the company’s stock valued at $2,005,000 after buying an additional 300 shares during the period. 99.72% of the stock is owned by institutional investors.

Regal Rexnord Trading Up 5.9%

The company has a debt-to-equity ratio of 0.70, a current ratio of 2.15 and a quick ratio of 0.97. The firm’s fifty day moving average is $153.28 and its 200-day moving average is $147.39. The firm has a market cap of $14.07 billion, a price-to-earnings ratio of 50.45, a price-to-earnings-growth ratio of 1.85 and a beta of 1.13.

Regal Rexnord Company Profile

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.