AIGH Capital Management LLC Takes Position in Regal Rexnord Corporation $RRX

Key Points

• AIGH Capital Management opened a new position in Regal Rexnord, buying 75,000 shares valued at about $14.0 million. The stake represents 1.9% of AIGH’s holdings and about 0.11% of the company.
• Wall Street sentiment remains constructive, with several analysts raising price targets and the stock carrying a consensus rating of Moderate Buy. The average target price stands at $237.80.
• Regal Rexnord reported solid quarterly results, beating EPS and revenue estimates with $2.17 EPS on $1.48 billion in revenue. The company also announced a quarterly dividend of $0.35 per share, payable July 14.

AIGH Capital Management LLC acquired a new stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 75,000 shares of the company's stock, valued at approximately $14,045,000. Regal Rexnord comprises 1.9% of AIGH Capital Management LLC's holdings, making the stock its 13th biggest position. AIGH Capital Management LLC owned approximately 0.11% of Regal Rexnord at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Victory Capital Management Inc. raised its stake in shares of Regal Rexnord by 42.6% during the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock valued at $793,983,000 after acquiring an additional 1,690,264 shares during the last quarter. Viking Global Investors LP lifted its holdings in shares of Regal Rexnord by 25.7% during the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock worth $497,231,000 after purchasing an additional 701,145 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Regal Rexnord by 5.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company's stock worth $355,031,000 after purchasing an additional 131,171 shares during the last quarter. Invesco Ltd. grew its stake in shares of Regal Rexnord by 27.1% in the fourth quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after purchasing an additional 405,828 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings in Regal Rexnord by 7.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 1,251,095 shares of the company's stock valued at $175,554,000 after purchasing an additional 85,242 shares during the period. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Citigroup raised their target price on Regal Rexnord from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. UBS Group set a $260.00 price target on Regal Rexnord in a research report on Monday, June 15th. Barclays raised their price objective on Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a research report on Monday, March 23rd. KeyCorp lifted their price objective on Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Finally, Wall Street Zen upgraded Regal Rexnord from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 4th. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Regal Rexnord presently has a consensus rating of "Moderate Buy" and a consensus target price of $237.80.

Insider Activity

In related news, CEO Louis V. Pinkham sold 22,509 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.68, for a total value of $4,764,705.12. Following the transaction, the chief executive officer owned 56,749 shares of the company's stock, valued at approximately $12,012,628.32. This trade represents a 28.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of the business's 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 sale, the director directly 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 disclosure for this sale is available in the SEC filing. Insiders sold 30,305 shares of company stock worth $6,341,869 over the last three months. 0.63% of the stock is currently owned by insiders.

Regal Rexnord Price Performance

RRX stock opened at $208.45 on Thursday. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. The company's 50-day moving average is $212.30 and its 200-day moving average is $194.34. The stock has a market capitalization of $13.88 billion, a PE ratio of 48.48, a price-to-earnings-growth ratio of 1.99 and a beta of 1.08. Regal Rexnord Corporation has a 1 year low of $127.96 and a 1 year high of $247.80.

Regal Rexnord (NYSE:RRX - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $2.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.11 by $0.06. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. Regal Rexnord's revenue was up 4.3% compared to the same quarter last year. During the same quarter last year, the firm posted $2.15 EPS. Equities research analysts expect that Regal Rexnord Corporation will post 10.64 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

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

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.

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