Hsbc Holdings PLC Sells 13,438 Shares of Regal Rexnord Corporation $RRX

Key Points

• HSBC Holdings PLC reduced its stake in Regal Rexnord by 32.3% in the fourth quarter, selling 13,438 shares and leaving it with 28,173 shares worth about $3.96 million.
• Insider selling has also been active, with CEO Louis V. Pinkham and Director Robin A. Walker-Lee both selling shares on May 11, and insiders selling 30,305 shares total over the past 90 days.
• Regal Rexnord reported strong quarterly results, beating earnings and revenue estimates with $2.17 EPS on $1.48 billion in revenue, while analysts currently hold a “Moderate Buy” consensus and a $238.91 average price target.

Hsbc Holdings PLC lessened its holdings in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) by 32.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 28,173 shares of the company's stock after selling 13,438 shares during the period. Hsbc Holdings PLC's holdings in Regal Rexnord were worth $3,964,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. AIA Group Ltd bought a new position in shares of Regal Rexnord during the third quarter valued at approximately $1,477,000. JPMorgan Chase & Co. boosted its holdings in Regal Rexnord by 97.0% in the third quarter. JPMorgan Chase & Co. now owns 260,853 shares of the company's stock valued at $37,419,000 after acquiring an additional 128,468 shares in the last quarter. Easterly Investment Partners LLC boosted its holdings in Regal Rexnord by 719.4% in the fourth quarter. Easterly Investment Partners LLC now owns 75,354 shares of the company's stock valued at $10,574,000 after acquiring an additional 66,158 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Regal Rexnord by 42.1% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 25,793 shares of the company's stock valued at $3,619,000 after purchasing an additional 7,647 shares during the period. Finally, Vontobel Holding Ltd. increased its position in Regal Rexnord by 5.2% during the 4th quarter. Vontobel Holding Ltd. now owns 276,266 shares of the company's stock valued at $38,766,000 after purchasing an additional 13,564 shares during the period. Institutional investors own 99.72% of the company's stock.

Insider Activity at Regal Rexnord

In related news, CEO Louis V. Pinkham sold 22,509 shares of the company's stock in a transaction that occurred on 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 approximately $12,012,628.32. This represents a 28.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $213.85, for a total value of $277,363.45. Following the sale, the director owned 5,503 shares in the company, valued at approximately $1,176,816.55. This represents a 19.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 30,305 shares of company stock valued at $6,341,869 over the last 90 days. Corporate insiders own 0.63% of the company's stock.

Regal Rexnord Price Performance

RRX opened at $207.96 on Friday. The stock has a 50-day moving average price of $212.26 and a 200-day moving average price of $194.82. 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 market cap of $13.84 billion, a PE ratio of 48.36, a P/E/G ratio of 1.96 and a beta of 1.08. Regal Rexnord Corporation has a 1 year low of $127.96 and a 1 year high of $247.80.

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 the consensus estimate of $2.11 by $0.06. The company had revenue of $1.48 billion for 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%. Regal Rexnord's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.15 EPS. Sell-side analysts predict that Regal Rexnord Corporation will post 10.64 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.7%. Regal Rexnord's dividend payout ratio is presently 32.56%.

Analysts Set New Price Targets

RRX has been the subject of several research analyst reports. Barclays raised their target price 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. DA Davidson began coverage on shares of Regal Rexnord in a research report on Tuesday, June 16th. They set a "buy" rating and a $260.00 price target on the stock. UBS Group set a $260.00 price target on shares of Regal Rexnord in a research note on Monday, June 15th. KeyCorp raised their price objective on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Finally, JPMorgan Chase & Co. lifted their price objective on Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. Seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $238.91.

Regal Rexnord 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.

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