Regal Rexnord Corporation (RRX) - What Are Researchers Saying About This Stock?

Key Points

• Analysts maintain a moderately bullish view: Regal Rexnord has a consensus “Moderate Buy” rating, with eight buy ratings and three holds. The average 12-month price target is $230.50, although several firms recently lowered their targets.
• Institutional ownership is substantial: Institutional investors own 99.72% of the company, with major recent purchases from BlackRock, Bank of America, Engineers Gate Manager, and Medina Value Partners.
• Quarterly earnings beat expectations: Regal Rexnord reported adjusted EPS of $2.99 versus the $2.58 analyst consensus, while revenue rose 4.2% year over year to $1.56 billion. The company also declared a quarterly dividend of $0.35 per share, yielding approximately 0.9% annually.

Shares of Regal Rexnord Corporation (NYSE:RRX - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the eleven brokerages that are covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $230.50.

Several research firms have weighed in on RRX. Citigroup lowered their price target on Regal Rexnord from $220.00 to $200.00 and set a "buy" rating on the stock in a research report on Monday. JPMorgan Chase & Co. cut their price objective on Regal Rexnord from $240.00 to $196.00 and set an "overweight" rating for the company in a report on Friday. KeyCorp cut their price objective on Regal Rexnord from $265.00 to $240.00 and set an "overweight" rating for the company in a report on Thursday, August 6th. The Goldman Sachs Group set a $216.00 target price on shares of Regal Rexnord in a research note on Wednesday, September 30th. Finally, Wolfe Research set a $250.00 target price on shares of Regal Rexnord in a report on Thursday, July 9th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Bank of America Corp DE raised its stake in Regal Rexnord by 4.4% in the 1st quarter. Bank of America Corp DE now owns 397,219 shares of the company's stock valued at $74,383,000 after acquiring an additional 16,615 shares during the period. Engineers Gate Manager LP acquired a new stake in Regal Rexnord during the 2nd quarter valued at $11,920,000. Medina Value Partners LLC bought a new position in Regal Rexnord during the second quarter worth $12,349,675. BlackRock Inc. bought a new position in Regal Rexnord during the second quarter worth $1,477,356,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Regal Rexnord in the second quarter valued at $2,161,000. Institutional investors own 99.72% of the company's stock.

Regal Rexnord Price Performance

Shares of NYSE RRX opened at $163.25 on Tuesday. The stock has a market capitalization of $10.87 billion, a price-to-earnings ratio of 33.66, a PEG ratio of 1.31 and a beta of 1.09. The business has a 50-day moving average of $163.46 and a 200-day moving average of $192.32. The company has a debt-to-equity ratio of 0.66, a current ratio of 2.28 and a quick ratio of 1.16. Regal Rexnord has a fifty-two week low of $127.96 and a fifty-two week high of $247.80.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $2.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.58 by $0.41. Regal Rexnord had a return on equity of 9.93% and a net margin of 5.35%. The business had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.58 billion. During the same quarter in the previous year, the business earned $2.48 earnings per share. Regal Rexnord's quarterly revenue was up 4.2% on a year-over-year basis. Regal Rexnord has set its FY 2026 guidance at 10.350-10.850 EPS. As a group, sell-side analysts predict that Regal Rexnord will post 10.65 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be paid a $0.35 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $1.40 dividend on an annualized basis and a yield of 0.9%. Regal Rexnord's dividend payout ratio (DPR) is currently 28.87%.

About Regal Rexnord

Regal Rexnord Corporation is a global manufacturer of industrial power, motion control and automation products. The company supplies electric motors, generators, gearboxes, bearings, couplings, clutches, brakes and related power-transmission equipment used to move, control and manage energy in industrial and commercial applications.

Its product portfolio also includes automation and motion-control technologies, conveyor and material-handling systems, precision components, and solutions designed to improve the efficiency and reliability of machinery.

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