Citigroup Inc. Reduces Holdings in Regal Rexnord Corporation $RRX

Key Points

• Citigroup cut its stake in Regal Rexnord by 32.8% in Q3, selling 8,955 shares and leaving it with 18,381 shares valued at about $2.64 million.
• Insiders have been selling: CEO Louis V. Pinkham disposed of 36,728 shares for roughly $7.92 million, and insiders sold a total of 53,451 shares (~$11.39 million) in the past 90 days, while corporate insiders now own 0.82% of the stock.
• Analysts have turned more bullish—multiple firms raised price targets and ratings, leaving Regal Rexnord with a consensus rating of "Moderate Buy" and a consensus price target of $227.50.

Citigroup Inc. cut its holdings in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) by 32.8% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 18,381 shares of the company's stock after selling 8,955 shares during the quarter. Citigroup Inc.'s holdings in Regal Rexnord were worth $2,637,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Oppenheimer Asset Management Inc. raised its stake in Regal Rexnord by 475.2% in the third quarter. Oppenheimer Asset Management Inc. now owns 21,991 shares of the company's stock valued at $3,154,000 after buying an additional 18,168 shares in the last quarter. Granite Investment Partners LLC acquired a new position in shares of Regal Rexnord during the 2nd quarter worth about $1,309,000. Nordea Investment Management AB boosted its position in shares of Regal Rexnord by 30.7% during the 3rd quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock worth $289,083,000 after acquiring an additional 476,802 shares in the last quarter. Prudential Financial Inc. increased its holdings in shares of Regal Rexnord by 233.6% in the 2nd quarter. Prudential Financial Inc. now owns 45,281 shares of the company's stock valued at $6,564,000 after acquiring an additional 31,709 shares during the last quarter. Finally, Stanley Capital Management LLC acquired a new stake in shares of Regal Rexnord during the 2nd quarter worth about $19,367,000. Hedge funds and other institutional investors own 99.72% of the company's stock.

Regal Rexnord Stock Performance

NYSE:RRX opened at $186.78 on Friday. The company has a current ratio of 2.15, a quick ratio of 1.10 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $12.42 billion, a P/E ratio of 44.47, a price-to-earnings-growth ratio of 1.85 and a beta of 1.05. The firm has a 50-day moving average price of $181.64 and a two-hundred day moving average price of $156.67. Regal Rexnord Corporation has a twelve month low of $90.56 and a twelve month high of $229.30.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $2.51 earnings per share for the quarter, topping analysts' consensus estimates of $2.47 by $0.04. The company had revenue of $1.52 billion during the quarter, compared to analysts' expectations of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The business's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.34 earnings per share. As a group, research analysts expect that Regal Rexnord Corporation will post 9.95 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 31st 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, March 31st. Regal Rexnord's dividend payout ratio is presently 33.33%.

Insider Transactions at Regal Rexnord

In other news, CEO Louis V. Pinkham sold 36,728 shares of the firm's stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $215.52, for a total value of $7,915,618.56. Following the transaction, the chief executive officer directly owned 83,337 shares in the company, valued at $17,960,790.24. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Cheryl Lewis sold 2,262 shares of the stock in a transaction on Monday, February 9th. The shares were sold at an average price of $215.73, for a total value of $487,981.26. Following the completion of the sale, the executive vice president owned 13,219 shares of the company's stock, valued at approximately $2,851,734.87. This represents a 14.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 53,451 shares of company stock valued at $11,386,689. Corporate insiders own 0.82% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on RRX shares. Citigroup upped their target price on shares of Regal Rexnord from $180.00 to $230.00 and gave the company a "buy" rating in a report on Monday, February 9th. KeyCorp boosted their price target on shares of Regal Rexnord from $200.00 to $255.00 and gave the company an "overweight" rating in a research report on Tuesday, February 10th. JPMorgan Chase & Co. upped their price objective on shares of Regal Rexnord from $190.00 to $230.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. Robert W. Baird set a $253.00 price objective on Regal Rexnord in a report on Friday, February 6th. Finally, Barclays lifted their target price on Regal Rexnord from $165.00 to $237.00 and gave the stock an "overweight" rating in a research report on Monday, February 9th. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $227.50.

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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