Dockside LLC Makes New Investment in Regal Rexnord Corporation $RRX

Key Points

• Dockside LLC opened a new position in Regal Rexnord during the fourth quarter, buying 4,974 shares worth about $698,000.
• Institutional ownership remains extremely high, with hedge funds and other investors holding 99.72% of Regal Rexnord’s shares. Several major funds, including Victory Capital and Viking Global, also increased their stakes recently.
• Analysts remain constructive on the stock: several raised price targets, and the consensus rating is Moderate Buy with an average target price of $232.25. Regal Rexnord also beat quarterly EPS and revenue estimates and declared a $0.35 quarterly dividend.

Dockside LLC bought a new position in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 4,974 shares of the company's stock, valued at approximately $698,000.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Victory Capital Management Inc. grew its position in shares of Regal Rexnord by 42.6% during the 4th quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock worth $793,983,000 after purchasing an additional 1,690,264 shares in the last quarter. Viking Global Investors LP grew its position in shares of Regal Rexnord by 25.7% during the 2nd 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 in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Regal Rexnord by 5.5% during the 4th 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 in the last quarter. Invesco Ltd. grew its position in shares of Regal Rexnord by 17.7% during the 3rd quarter. Invesco Ltd. now owns 1,500,000 shares of the company's stock worth $215,160,000 after purchasing an additional 225,734 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of Regal Rexnord by 7.3% during the 4th quarter. The Manufacturers Life Insurance Company now owns 1,251,095 shares of the company's stock worth $175,554,000 after purchasing an additional 85,242 shares in the last quarter. Institutional investors and hedge funds own 99.72% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Citigroup increased their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Wall Street Zen lowered shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, April 28th. KeyCorp increased their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. JPMorgan Chase & Co. increased their price target on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Finally, Barclays increased their price target on shares of Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a research report on Monday, March 23rd. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Regal Rexnord presently has an average rating of "Moderate Buy" and a consensus target price of $232.25.

Insider Activity

In other news, CEO Louis V. Pinkham sold 22,509 shares of the firm's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.68, for a total transaction of $4,764,705.12. Following the completion of 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of the firm's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the transaction, the director directly owned 5,503 shares of the company's stock, valued at $1,176,816.55. The trade was a 19.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 30,305 shares of company stock valued at $6,341,869. Insiders own 0.63% of the company's stock.

Regal Rexnord Price Performance

Shares of NYSE:RRX opened at $212.51 on Monday. The company has a market cap of $14.15 billion, a price-to-earnings ratio of 49.42, a PEG ratio of 2.00 and a beta of 1.11. 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 firm has a 50 day simple moving average of $205.28 and a 200 day simple moving average of $184.69. Regal Rexnord Corporation has a one year low of $127.96 and a one year high of $236.35.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $2.17 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%. The firm's revenue was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.15 EPS. Research analysts predict that Regal Rexnord Corporation will post 10.63 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

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

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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