Wall Street Zen Downgrades Regal Rexnord (NYSE:RRX) to Buy

Regal Rexnord (NYSE:RRX) was downgraded by equities researchers at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

RRX has been the subject of several other research reports. JPMorgan Chase & Co. increased their price objective on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Wolfe Research set a $250.00 price objective on shares of Regal Rexnord in a research report on Thursday, July 9th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a research note on Tuesday, April 21st. UBS Group set a $260.00 target price on shares of Regal Rexnord in a research report on Monday, June 15th. Finally, Oppenheimer restated an “outperform” rating on shares of Regal Rexnord in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Regal Rexnord currently has a consensus rating of “Moderate Buy” and an average price target of $243.45.

Regal Rexnord Price Performance

NYSE RRX opened at $207.29 on Friday. The business has a 50 day simple moving average of $211.75 and a 200 day simple moving average of $197.27. Regal Rexnord has a 52-week low of $127.96 and a 52-week high of $247.80. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17. The stock has a market cap of $13.80 billion, a price-to-earnings ratio of 48.21, a PEG ratio of 1.99 and a beta of 1.08.

Regal Rexnord (NYSE:RRX) last announced its earnings results on Thursday, May 7th. The company reported $2.17 EPS for the quarter, topping the consensus estimate of $2.11 by $0.06. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period last year, the company posted $2.15 EPS. The business’s quarterly revenue was up 4.3% on a year-over-year basis. Analysts anticipate that Regal Rexnord will post 10.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Robert Rehard sold 6,499 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total value of $1,299,800.00. Following the completion of the sale, the chief financial officer directly owned 27,965 shares of the company’s stock, valued at $5,593,000. This trade represents a 18.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Robin A. Walker-Lee sold 1,297 shares of Regal Rexnord stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $213.85, for a total value of $277,363.45. Following the transaction, the director owned 5,503 shares of the company’s stock, valued at $1,176,816.55. This represents a 19.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 30,305 shares of company stock valued at $6,341,869 over the last 90 days. 0.63% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Regal Rexnord

A number of large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its position in Regal Rexnord by 208.1% during the first quarter. AQR Capital Management LLC now owns 17,747 shares of the company’s stock worth $2,011,000 after purchasing an additional 11,987 shares during the period. Jones Financial Companies Lllp raised its position in shares of Regal Rexnord by 91.6% in the first 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 period. Geneos Wealth Management Inc. raised its position in shares of Regal Rexnord by 135.1% in the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock valued at $25,000 after purchasing an additional 127 shares during the period. Cetera Investment Advisers lifted its stake in shares of Regal Rexnord by 6.7% during the 2nd quarter. Cetera Investment Advisers now owns 3,116 shares of the company’s stock worth $452,000 after buying an additional 196 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Regal Rexnord during the 2nd quarter worth about $4,759,000. Institutional investors own 99.72% of the company’s stock.

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.