Capital World Investors Has $377.15 Million Holdings in Regal Rexnord Corporation $RRX

Key Points

• Capital World Investors reduced its Regal Rexnord stake by 31.3% in the fourth quarter, but still held 2.69 million shares worth about $377.1 million, or roughly 4.05% of the company.
• Regal Rexnord reported better-than-expected quarterly results, posting EPS of $2.17 versus estimates of $2.11 and revenue of $1.48 billion versus $1.43 billion expected. Revenue also rose 4.3% year over year.
• The company announced a quarterly dividend of $0.35 per share, payable July 14, while analysts remain broadly positive with a consensus Moderate Buy rating and an average price target of $232.25.

Capital World Investors cut its stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 31.3% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,687,729 shares of the company's stock after selling 1,225,381 shares during the period. Capital World Investors owned about 4.05% of Regal Rexnord worth $377,148,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of RRX. Covestor Ltd grew its position in Regal Rexnord by 81.6% during the 4th quarter. Covestor Ltd now owns 178 shares of the company's stock worth $25,000 after acquiring an additional 80 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Regal Rexnord by 135.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after acquiring an additional 127 shares during the last quarter. Aster Capital Management DIFC Ltd bought a new stake in Regal Rexnord during the 3rd quarter worth approximately $27,000. Garner Asset Management Corp bought a new stake in Regal Rexnord during the 4th quarter worth approximately $27,000. Finally, IFP Advisors Inc grew its position in Regal Rexnord by 34.0% during the 4th quarter. IFP Advisors Inc now owns 193 shares of the company's stock worth $27,000 after acquiring an additional 49 shares during the last quarter. 99.72% of the stock is owned by institutional investors and hedge funds.

Regal Rexnord Stock Up 2.7%

Shares of RRX opened at $210.02 on Tuesday. The firm has a market capitalization of $13.98 billion, a price-to-earnings ratio of 48.84, a PEG ratio of 1.92 and a beta of 1.11. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17. The business's fifty day moving average price is $203.32 and its two-hundred day moving average price is $182.59. Regal Rexnord Corporation has a 52 week low of $127.96 and a 52 week high of $236.35.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $2.17 EPS for the quarter, beating analysts' consensus estimates of $2.11 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The business's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the company earned $2.15 EPS. On average, analysts predict that Regal Rexnord Corporation will post 10.63 earnings per share for the current year.

Regal Rexnord Announces Dividend

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

Wall Street Analyst Weigh In

A number of research firms recently commented on RRX. Barclays increased their price target on Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a research report on Monday, March 23rd. Weiss Ratings restated a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. The Goldman Sachs Group increased their price target on Regal Rexnord from $170.00 to $230.00 and gave the stock a "buy" rating in a research report on Monday, February 9th. KeyCorp increased their price target on Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. increased their price target on Regal Rexnord from $230.00 to $240.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $232.25.

Insider Buying and Selling at Regal Rexnord

In other news, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction 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 transaction, the director owned 5,503 shares of the company's stock, valued at $1,176,816.55. This represents a 19.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Robert Rehard sold 6,499 shares of the stock in a transaction on 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 directly owned 27,965 shares in the company, valued at approximately $5,593,000. This trade represents a 18.86% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 30,305 shares of company stock worth $6,341,869. Insiders own 0.63% of the company's stock.

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.

Want to see what other hedge funds are holding RRX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Regal Rexnord Corporation (NYSE:RRX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.