Diamond Hill Capital Management Inc. Boosts Stake in Regal Rexnord Corporation (NYSE:RRX)

Diamond Hill Capital Management Inc. raised its holdings in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) by 6.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 3,083,622 shares of the company's stock after purchasing an additional 175,273 shares during the period. Regal Rexnord accounts for approximately 1.6% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 23rd biggest holding. Diamond Hill Capital Management Inc. owned about 4.65% of Regal Rexnord worth $351,070,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the business. Kovitz Investment Group Partners LLC boosted its holdings in Regal Rexnord by 3.8% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 2,382 shares of the company's stock valued at $370,000 after purchasing an additional 87 shares during the last quarter. Advisory Research Inc. boosted its holdings in Regal Rexnord by 1.5% in the fourth quarter. Advisory Research Inc. now owns 6,710 shares of the company's stock valued at $1,041,000 after purchasing an additional 98 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in Regal Rexnord by 0.7% in the first quarter. Oregon Public Employees Retirement Fund now owns 13,549 shares of the company's stock valued at $1,543,000 after purchasing an additional 100 shares during the last quarter. Greenleaf Trust boosted its holdings in Regal Rexnord by 2.1% in the first quarter. Greenleaf Trust now owns 5,187 shares of the company's stock valued at $591,000 after purchasing an additional 105 shares during the last quarter. Finally, Xponance Inc. boosted its holdings in Regal Rexnord by 1.5% in the first quarter. Xponance Inc. now owns 7,866 shares of the company's stock valued at $896,000 after purchasing an additional 120 shares during the last quarter. 99.72% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently issued reports on RRX. KeyCorp set a $180.00 target price on shares of Regal Rexnord and gave the stock an "overweight" rating in a research note on Thursday, June 26th. Robert W. Baird increased their target price on shares of Regal Rexnord from $167.00 to $172.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 7th. The Goldman Sachs Group increased their target price on shares of Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a research note on Tuesday, July 8th. Wall Street Zen raised shares of Regal Rexnord from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 22nd. Finally, Citigroup reissued a "buy" rating and set a $165.00 target price (up from $145.00) on shares of Regal Rexnord in a research note on Tuesday, June 24th. Eight equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and an average price target of $185.25.

Regal Rexnord Price Performance

Shares of RRX traded up $2.81 during mid-day trading on Friday, hitting $157.25. 444,683 shares of the company were exchanged, compared to its average volume of 698,223. Regal Rexnord Corporation has a 1-year low of $90.56 and a 1-year high of $185.28. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.21 and a current ratio of 2.26. The company has a 50 day moving average of $143.85 and a 200-day moving average of $133.44. The stock has a market cap of $10.43 billion, a price-to-earnings ratio of 44.80, a price-to-earnings-growth ratio of 1.59 and a beta of 1.17.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings data on Monday, May 5th. The company reported $2.15 EPS for the quarter, beating analysts' consensus estimates of $1.82 by $0.33. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.38 billion. Regal Rexnord had a net margin of 3.96% and a return on equity of 9.67%. Regal Rexnord's quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.00 EPS. Analysts expect that Regal Rexnord Corporation will post 9.95 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be issued a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.89%. Regal Rexnord's dividend payout ratio is currently 39.89%.

Insider Activity

In other news, CEO Louis V. Pinkham sold 10,593 shares of the firm's stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $140.33, for a total transaction of $1,486,515.69. Following the completion of the sale, the chief executive officer owned 175,954 shares in the company, valued at $24,691,624.82. This trade represents a 5.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.82% of the stock is owned by corporate insiders.

Regal Rexnord Company Profile

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.