Franklin Resources Inc. Acquires 269,008 Shares of Regal Rexnord Corporation $RRX

Key Points

• Franklin Resources increased its stake in Regal Rexnord by 32.4% in the fourth quarter, buying 269,008 additional shares and ending with 1,100,204 shares worth about $154.4 million.
• Regal Rexnord reported better-than-expected quarterly results, with EPS of $2.17 versus $2.11 expected and revenue of $1.48 billion versus $1.43 billion expected, while revenue rose 4.3% year over year.
• The company also declared a quarterly dividend of $0.35 per share, and analysts remain constructive on the stock with a consensus Moderate Buy rating and average price target of $232.25.

Franklin Resources Inc. increased its position in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 32.4% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,100,204 shares of the company's stock after acquiring an additional 269,008 shares during the quarter. Franklin Resources Inc. owned about 1.66% of Regal Rexnord worth $154,381,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Covestor Ltd boosted its position in shares of Regal Rexnord by 81.6% during the 4th quarter. Covestor Ltd now owns 178 shares of the company's stock valued at $25,000 after acquiring an additional 80 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new position in shares of Regal Rexnord in the third quarter worth about $27,000. Garner Asset Management Corp bought a new stake in shares of Regal Rexnord during the fourth quarter worth approximately $27,000. IFP Advisors Inc raised its stake in shares of Regal Rexnord by 34.0% during the fourth quarter. IFP Advisors Inc now owns 193 shares of the company's stock worth $27,000 after buying an additional 49 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in shares of Regal Rexnord by 135.1% during the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after buying an additional 127 shares during the last quarter. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Regal Rexnord Price Performance

NYSE:RRX opened at $200.42 on Thursday. Regal Rexnord Corporation has a 52 week low of $127.96 and a 52 week high of $236.35. The firm has a market cap of $13.34 billion, a price-to-earnings ratio of 46.61, a P/E/G ratio of 2.01 and a beta of 1.11. The firm's 50-day simple moving average is $204.39 and its 200 day simple moving average is $183.68. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $2.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.11 by $0.06. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period in the prior year, the company posted $2.15 earnings per share. The business's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, sell-side 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 declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.40 annualized dividend and a yield of 0.7%. Regal Rexnord's dividend payout ratio (DPR) is presently 32.56%.

Wall Street Analysts Forecast Growth

RRX has been the subject of a number of analyst reports. Barclays boosted their price objective on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, March 23rd. JPMorgan Chase & Co. upped their price target on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. KeyCorp upped their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Weiss Ratings restated a "hold (c)" rating on shares of Regal Rexnord in a report on Tuesday, April 21st. Finally, 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 report on Monday, April 13th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Regal Rexnord presently has a consensus rating of "Moderate Buy" and an average target price of $232.25.

Insider Activity

In related news, Director Robin A. Walker-Lee sold 1,297 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $213.85, for a total value of $277,363.45. Following the sale, the director directly owned 5,503 shares in the company, valued at approximately $1,176,816.55. The trade was a 19.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Louis V. Pinkham sold 22,509 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.68, for a total value of $4,764,705.12. Following the transaction, the chief executive officer directly owned 56,749 shares of the company's stock, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 30,305 shares of company stock worth $6,341,869 in the last quarter. 0.63% of the stock is owned by corporate insiders.

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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