Brandywine Global Investment Management LLC Acquires Shares of 225,539 Regal Rexnord Corporation $RRX

Key Points

• Brandywine Global Investment Management LLC made a significant investment in Regal Rexnord Corporation, acquiring 225,539 shares valued at approximately $25.7 million, representing about 0.34% of the company.
• Analysts are optimistic about Regal Rexnord, with multiple firms raising their price targets and maintaining a consensus rating of "buy" and an average price target of $185.25.
• Regal Rexnord has announced a quarterly dividend of $0.35 per share, which equates to an annualized dividend of $1.40 and reflects a dividend yield of 1.0%.

Brandywine Global Investment Management LLC purchased a new stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 225,539 shares of the company's stock, valued at approximately $25,678,000. Brandywine Global Investment Management LLC owned 0.34% of Regal Rexnord at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in RRX. Envestnet Asset Management Inc. grew its stake in shares of Regal Rexnord by 10.9% in the 4th quarter. Envestnet Asset Management Inc. now owns 74,169 shares of the company's stock valued at $11,506,000 after buying an additional 7,275 shares during the period. Raymond James Financial Inc. purchased a new stake in shares of Regal Rexnord in the 4th quarter valued at approximately $22,325,000. Marshall Wace LLP purchased a new stake in shares of Regal Rexnord in the 4th quarter valued at approximately $4,801,000. Capital International Sarl grew its stake in shares of Regal Rexnord by 6.1% in the 4th quarter. Capital International Sarl now owns 29,682 shares of the company's stock valued at $4,605,000 after buying an additional 1,707 shares during the period. Finally, Capital Group Investment Management PTE. LTD. grew its stake in shares of Regal Rexnord by 6.3% in the 4th quarter. Capital Group Investment Management PTE. LTD. now owns 4,490 shares of the company's stock valued at $697,000 after buying an additional 267 shares during the period. Hedge funds and other institutional investors own 99.72% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RRX. Robert W. Baird increased their price target on shares of Regal Rexnord from $167.00 to $172.00 and gave the company an "outperform" rating in a research note on Wednesday, May 7th. Barclays upped their price objective on shares of Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a report on Wednesday, July 9th. Citigroup restated a "buy" rating and issued a $165.00 price objective (up from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. The Goldman Sachs Group upped their price objective on shares of Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Finally, Wall Street Zen lowered shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a report on Saturday. Eight investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company has an average rating of "Buy" and a consensus price target of $185.25.

Regal Rexnord Stock Down 2.3%

Regal Rexnord stock traded down $3.3820 during mid-day trading on Wednesday, reaching $145.0880. 443,979 shares of the company's stock were exchanged, compared to its average volume of 763,439. The company has a market cap of $9.63 billion, a P/E ratio of 38.62, a P/E/G ratio of 1.48 and a beta of 1.18. Regal Rexnord Corporation has a twelve month low of $90.56 and a twelve month high of $185.28. The company has a quick ratio of 0.93, a current ratio of 2.00 and a debt-to-equity ratio of 0.72. The company has a fifty day moving average of $147.43 and a 200-day moving average of $132.14.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $2.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.42 by $0.06. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.50 billion. Regal Rexnord had a net margin of 4.28% and a return on equity of 9.73%. The firm's quarterly revenue was down 3.3% on a year-over-year basis. During the same period in the prior year, the business earned $2.29 EPS. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. Sell-side analysts expect that Regal Rexnord Corporation will post 9.95 EPS for the current year.

Regal Rexnord Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be issued a dividend of $0.35 per share. The ex-dividend date is Tuesday, September 30th. This represents a $1.40 dividend on an annualized basis and a yield of 1.0%. Regal Rexnord's dividend payout ratio is 37.23%.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.