RBC Bearings (NYSE:RBC) Upgraded to "Strong-Buy" at Guggenheim

Key Points

• Guggenheim upgraded RBC Bearings to “strong buy,” while the broader analyst consensus remains “Moderate Buy,” with a consensus price target of $615.44.
• RBC Bearings reported quarterly EPS of $3.88, beating estimates of $3.42, while revenue rose 19.2% year over year to $519.5 million.
• The stock opened at $485.38, below its 50-day and 200-day moving averages; company insiders recently sold shares, while several institutional investors increased their positions.

RBC Bearings (NYSE:RBC - Get Free Report) was upgraded by equities researchers at Guggenheim to a "strong-buy" rating in a note issued to investors on Monday, Zacks reports.

A number of other equities analysts also recently issued reports on RBC. Zacks Research downgraded RBC Bearings from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $686.00 target price on shares of RBC Bearings in a report on Tuesday, August 4th. Royal Bank Of Canada set a $600.00 target price on RBC Bearings in a research report on Monday. Morgan Stanley increased their price target on RBC Bearings from $600.00 to $640.00 and gave the company an "overweight" rating in a research report on Tuesday, May 19th. Finally, Truist Financial raised their price objective on RBC Bearings from $615.00 to $646.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, RBC Bearings currently has an average rating of "Moderate Buy" and a consensus price target of $615.44.

RBC Bearings Stock Up 0.3%

Shares of NYSE:RBC opened at $485.38 on Monday. RBC Bearings has a 52-week low of $364.50 and a 52-week high of $667.69. The business's 50 day simple moving average is $539.63 and its two-hundred day simple moving average is $568.91. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.98 and a current ratio of 2.53. The firm has a market cap of $15.37 billion, a P/E ratio of 47.96, a PEG ratio of 2.59 and a beta of 1.39.

RBC Bearings (NYSE:RBC - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.88 EPS for the quarter, beating analysts' consensus estimates of $3.42 by $0.46. The business had revenue of $519.50 million during the quarter, compared to analyst estimates of $508.92 million. RBC Bearings had a net margin of 16.40% and a return on equity of 12.06%. RBC Bearings's quarterly revenue was up 19.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.84 EPS. As a group, research analysts forecast that RBC Bearings will post 14.12 EPS for the current fiscal year.

Insider Activity at RBC Bearings

In other news, Director Dolores Ennico sold 600 shares of the business's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $636.11, for a total value of $381,666.00. Following the transaction, the director owned 7,254 shares in the company, valued at $4,614,341.94. The trade was a 7.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP John Feeney sold 225 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $657.94, for a total value of $148,036.50. Following the completion of the transaction, the vice president directly owned 2,378 shares of the company's stock, valued at approximately $1,564,581.32. This represents a 8.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On RBC Bearings

Hedge funds have recently made changes to their positions in the business. Geode Capital Management LLC increased its holdings in RBC Bearings by 8.5% during the fourth quarter. Geode Capital Management LLC now owns 619,314 shares of the industrial products company's stock worth $277,776,000 after buying an additional 48,419 shares during the last quarter. Maren Capital LLC boosted its stake in RBC Bearings by 1.4% in the fourth quarter. Maren Capital LLC now owns 450,314 shares of the industrial products company's stock valued at $201,934,000 after acquiring an additional 6,373 shares during the last quarter. First Trust Advisors LP grew its position in shares of RBC Bearings by 27.5% during the 1st quarter. First Trust Advisors LP now owns 409,700 shares of the industrial products company's stock valued at $222,516,000 after acquiring an additional 88,468 shares during the period. Norges Bank bought a new position in shares of RBC Bearings during the 4th quarter valued at approximately $175,909,000. Finally, Franklin Resources Inc. increased its stake in shares of RBC Bearings by 0.7% during the 4th quarter. Franklin Resources Inc. now owns 322,482 shares of the industrial products company's stock worth $144,611,000 after purchasing an additional 2,288 shares during the last quarter.

About RBC Bearings

RBC Bearings Incorporated is a manufacturer of highly engineered bearings and motion-control components. The company designs and produces products used to reduce friction, support rotating or moving equipment, and manage loads in demanding operating environments. Its offerings include plain bearings, roller bearings, ball bearings, spherical bearings, rod ends, thrust bearings, and specialty bearing assemblies.

The company supplies components for aerospace and defense applications, industrial machinery, transportation equipment, construction and mining systems, medical devices, and energy-related equipment.

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