RBC Bearings Incorporated (NYSE:RBC) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• RBC Bearings has a consensus “Moderate Buy” rating from nine analysts, with seven buys and two holds. The average 12-month price target is $623, implying potential upside from the reported $487.71 share price.
• The company exceeded quarterly expectations, reporting adjusted EPS of $3.88 versus the $3.42 consensus and revenue of $519.5 million versus $508.92 million expected. Revenue increased 19.2% year over year.
• Recent insider activity was negative, with a vice president and a director selling shares; insiders retain 1.8% ownership. Meanwhile, several institutional investors increased or initiated small positions in RBC Bearings.

RBC Bearings Incorporated (NYSE:RBC - Get Free Report) has received an average rating of "Moderate Buy" from the nine ratings firms that are covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $623.00.

Several analysts have recently issued reports on RBC shares. Raymond James Financial upgraded shares of RBC Bearings from a "market perform" rating to an "outperform" rating and set a $645.00 target price for the company in a research note on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $686.00 price target on shares of RBC Bearings in a research report on Tuesday, August 4th. Zacks Research downgraded shares of RBC Bearings from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Weiss Ratings lowered shares of RBC Bearings from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, August 27th. Finally, Wall Street Zen cut shares of RBC Bearings from a "buy" rating to a "hold" rating in a research report on Saturday, August 22nd.

Insider Buying and Selling

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

Hedge Funds Weigh In On RBC Bearings

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Advisors Asset Management Inc. purchased a new stake in RBC Bearings during the first quarter worth about $26,000. Western Wealth Management LLC purchased a new position in RBC Bearings in the first quarter valued at about $27,000. SBI Securities Co. Ltd. grew its position in shares of RBC Bearings by 106.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 64 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 33 shares during the period. Larson Financial Group LLC grew its position in shares of RBC Bearings by 148.5% during the 3rd quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company's stock valued at $32,000 after acquiring an additional 49 shares during the period. Finally, EverSource Wealth Advisors LLC increased its stake in shares of RBC Bearings by 123.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 96 shares of the industrial products company's stock worth $37,000 after purchasing an additional 53 shares during the last quarter.

RBC Bearings Stock Performance

Shares of RBC Bearings stock opened at $487.71 on Friday. RBC Bearings has a 52 week low of $364.50 and a 52 week high of $667.69. The company has a quick ratio of 0.98, a current ratio of 2.53 and a debt-to-equity ratio of 0.21. The business has a 50 day moving average price of $560.06 and a 200-day moving average price of $573.01. The company has a market cap of $15.44 billion, a PE ratio of 48.19, a price-to-earnings-growth ratio of 2.62 and a beta of 1.39.

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

About RBC Bearings

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.

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