89,708 Shares in Regal Rexnord Corporation $RRX Acquired by Daiwa Securities Group Inc.

Key Points

• Daiwa Securities Group initiated a new position in Regal Rexnord, buying 89,708 shares in the fourth quarter worth about $12.6 million.
• Wall Street sentiment is broadly positive: several firms raised price targets, and the stock now carries a Moderate Buy consensus with an average target price of $232.25.
• Regal Rexnord reported better-than-expected earnings for the latest quarter, with EPS of $2.17 and revenue of $1.48 billion, while also announcing a quarterly dividend of $0.35 per share.

Daiwa Securities Group Inc. purchased a new position in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 89,708 shares of the company's stock, valued at approximately $12,588,000. Daiwa Securities Group Inc. owned approximately 0.14% of Regal Rexnord as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. IFP Advisors Inc grew its holdings in Regal Rexnord by 34.0% in the 4th quarter. IFP Advisors Inc now owns 193 shares of the company's stock valued at $27,000 after buying an additional 49 shares in the last quarter. Northwestern Mutual Investment Management Company LLC raised its holdings in shares of Regal Rexnord by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 14,855 shares of the company's stock worth $2,084,000 after acquiring an additional 60 shares during the period. Allworth Financial LP raised its holdings in shares of Regal Rexnord by 35.9% during the 3rd quarter. Allworth Financial LP now owns 265 shares of the company's stock worth $38,000 after acquiring an additional 70 shares during the period. CWM LLC grew its holdings in shares of Regal Rexnord by 7.2% in the fourth quarter. CWM LLC now owns 1,075 shares of the company's stock valued at $151,000 after purchasing an additional 72 shares during the period. Finally, 1620 Investment Advisors Inc. grew its holdings in shares of Regal Rexnord by 8.2% in the fourth quarter. 1620 Investment Advisors Inc. now owns 1,021 shares of the company's stock valued at $143,000 after purchasing an additional 77 shares during the period. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms recently issued reports on RRX. JPMorgan Chase & Co. raised 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. The Goldman Sachs Group boosted their target price on shares of Regal Rexnord from $170.00 to $230.00 and gave the company a "buy" rating in a report on Monday, February 9th. KeyCorp increased their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. Finally, Barclays upped their price objective on Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, March 23rd. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $232.25.

Insider Activity

In other news, Director Robin A. Walker-Lee sold 1,297 shares of Regal Rexnord stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $213.85, for a total value of $277,363.45. Following the completion of the transaction, the director owned 5,503 shares in the company, valued at approximately $1,176,816.55. This trade represents a 19.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Robert Rehard sold 6,499 shares of Regal Rexnord stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $200.00, for a total value of $1,299,800.00. Following the completion of the transaction, the chief financial officer owned 27,965 shares of the company's stock, valued at $5,593,000. The trade was a 18.86% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 30,305 shares of company stock worth $6,341,869. 0.63% of the stock is currently owned by company insiders.

Regal Rexnord Stock Down 4.1%

Shares of RRX opened at $205.14 on Friday. The firm has a market cap of $13.66 billion, a P/E ratio of 47.71, a price-to-earnings-growth ratio of 1.92 and a beta of 1.11. Regal Rexnord Corporation has a 12-month low of $127.96 and a 12-month high of $236.35. The company's 50-day moving average price is $202.87 and its 200 day moving average price is $181.66. The company has a current ratio of 2.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.69.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $2.17 earnings per share for the quarter, beating the consensus estimate of $2.11 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.43 billion. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.Regal Rexnord's revenue was up 4.3% compared to the same quarter last year. During the same period in the previous year, the company posted $2.15 EPS. On average, sell-side analysts forecast that Regal Rexnord Corporation will post 10.63 earnings per share for the current year.

Regal Rexnord Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.7%. Regal Rexnord's dividend payout ratio is currently 32.56%.

About Regal Rexnord

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.

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