Regal Rexnord (NYSE:RRX) Shares Gap Up Following Better-Than-Expected Earnings

Regal Rexnord Co. (NYSE:RRX)’s stock price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $110.28, but opened at $128.67. Regal Rexnord shares last traded at $126.49, with a volume of 143,497 shares changing hands.

The company reported $2.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $0.33. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.38 billion. Regal Rexnord had a net margin of 3.25% and a return on equity of 9.57%. The firm’s quarterly revenue was down 8.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.00 earnings per share.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 14th. Investors of record on Monday, June 30th will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.12%. The ex-dividend date of this dividend is Monday, June 30th. Regal Rexnord’s dividend payout ratio is currently 47.46%.

Analysts Set New Price Targets

RRX has been the topic of a number of analyst reports. KeyCorp dropped their price objective on shares of Regal Rexnord from $180.00 to $125.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 8th. Citigroup dropped their price target on shares of Regal Rexnord from $170.00 to $110.00 and set a “buy” rating on the stock in a research report on Tuesday, April 8th. Barclays decreased their price objective on shares of Regal Rexnord from $160.00 to $155.00 and set an “overweight” rating for the company in a research report on Wednesday, March 26th. Oppenheimer cut their price target on Regal Rexnord from $210.00 to $190.00 and set an “outperform” rating for the company in a research note on Friday, February 7th. Finally, StockNews.com downgraded Regal Rexnord from a “buy” rating to a “hold” rating in a research report on Wednesday, April 16th. Two investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $170.75.

Hedge Funds Weigh In On Regal Rexnord

Several hedge funds and other institutional investors have recently made changes to their positions in RRX. Norges Bank purchased a new position in Regal Rexnord in the 4th quarter valued at $235,188,000. Nuveen Asset Management LLC raised its position in shares of Regal Rexnord by 79.8% in the fourth quarter. Nuveen Asset Management LLC now owns 899,688 shares of the company’s stock valued at $139,569,000 after buying an additional 399,267 shares during the last quarter. Victory Capital Management Inc. lifted its stake in shares of Regal Rexnord by 20.1% in the fourth quarter. Victory Capital Management Inc. now owns 2,176,963 shares of the company’s stock worth $337,712,000 after buying an additional 363,728 shares in the last quarter. Cartenna Capital LP acquired a new position in Regal Rexnord during the fourth quarter worth about $55,900,000. Finally, Alyeska Investment Group L.P. grew its stake in Regal Rexnord by 425.4% during the 4th quarter. Alyeska Investment Group L.P. now owns 400,050 shares of the company’s stock valued at $62,060,000 after acquiring an additional 323,904 shares in the last quarter. Hedge funds and other institutional investors own 99.72% of the company’s stock.

Regal Rexnord Price Performance

The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.25 and a current ratio of 2.26. The stock’s 50 day simple moving average is $111.42 and its two-hundred day simple moving average is $143.15. The firm has a market capitalization of $8.30 billion, a PE ratio of 42.45, a price-to-earnings-growth ratio of 1.37 and a beta of 1.11.

Regal Rexnord Company Profile

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.