Hsbc Holdings PLC Sells 23,734 Shares of Regal Rexnord Corporation $RRX

Key Points

• HSBC Holdings cut its Regal Rexnord stake by 84.2% in the first quarter, selling 23,734 shares and retaining 4,439 shares valued at approximately $831,000.
• Institutional ownership remains high at 99.72%, while analysts maintain a broadly positive outlook: eight rate RRX a Buy and three a Hold, with a “Moderate Buy” consensus and average price target of $247.
• Regal Rexnord shares opened at $186.91 after declining 7.9%; the company recently exceeded quarterly earnings and revenue expectations and declared a $0.35 quarterly dividend, equivalent to a 0.7% yield.

Hsbc Holdings PLC lowered its stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 84.2% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 4,439 shares of the company's stock after selling 23,734 shares during the period. Hsbc Holdings PLC's holdings in Regal Rexnord were worth $831,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Victory Capital Management Inc. raised its stake in Regal Rexnord by 42.6% during the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock valued at $793,983,000 after buying an additional 1,690,264 shares during the last quarter. Viking Global Investors LP boosted its holdings in Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock worth $497,231,000 after acquiring an additional 701,145 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Regal Rexnord by 5.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company's stock worth $355,031,000 after acquiring an additional 131,171 shares during the last quarter. Invesco Ltd. grew its stake in shares of Regal Rexnord by 27.1% in the fourth quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after acquiring an additional 405,828 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings in shares of Regal Rexnord by 7.3% during the fourth quarter. The Manufacturers Life Insurance Company now owns 1,251,095 shares of the company's stock valued at $175,554,000 after acquiring an additional 85,242 shares in the last quarter. Institutional investors own 99.72% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on RRX. Wall Street Zen lowered Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. UBS Group set a $260.00 price objective on shares of Regal Rexnord in a research report on Monday, June 15th. Weiss Ratings restated a "hold (c)" rating on shares of Regal Rexnord in a research note on Friday, July 17th. JPMorgan Chase & Co. lifted their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock an "overweight" rating in a report on Tuesday, May 26th. Finally, KeyCorp upped their target price on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $247.00.

Insider Transactions at Regal Rexnord

In other news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.68, for a total value of $4,764,705.12. Following the completion of the sale, the chief executive officer directly owned 56,749 shares in the company, valued at $12,012,628.32. The trade was a 28.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Robert Rehard sold 6,499 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the transaction, the chief financial officer owned 27,965 shares in the company, valued at approximately $5,593,000. This trade represents a 18.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 30,305 shares of company stock worth $6,341,869 over the last three months. 0.63% of the stock is currently owned by company insiders.

Regal Rexnord Trading Down 7.9%

Shares of NYSE:RRX opened at $186.91 on Thursday. The company has a market cap of $12.44 billion, a P/E ratio of 43.47, a PEG ratio of 1.35 and a beta of 1.08. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. Regal Rexnord Corporation has a 1 year low of $127.96 and a 1 year high of $247.80. The stock's fifty day moving average price is $212.97 and its 200-day moving average price is $201.04.

Regal Rexnord (NYSE:RRX - Get Free Report) last released 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. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.43 billion. During the same period last year, the firm posted $2.15 earnings per share. Regal Rexnord's revenue was up 4.3% compared to the same quarter last year. Sell-side analysts expect that Regal Rexnord Corporation will post 10.65 earnings per share for the current year.

Regal Rexnord Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th 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 of this dividend is Wednesday, September 30th. 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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