Jennison Associates LLC Has $68 Million Stake in Regal Rexnord Corporation $RRX

Key Points

• Jennison Associates LLC increased its stake in Regal Rexnord by 22.8% in the first quarter, ending with 363,118 shares worth about $68 million.
• Regal Rexnord reported better-than-expected quarterly results, with EPS of $2.17 and revenue of $1.48 billion, both topping analyst estimates; revenue also rose 4.3% year over year.
• Analyst sentiment remains broadly positive, with eight Buy ratings and an average target price of $243.45, though insiders have recently sold shares, including CEO Louis Pinkham and CFO Robert Rehard.

Jennison Associates LLC raised its position in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 22.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 363,118 shares of the company's stock after buying an additional 67,333 shares during the quarter. Jennison Associates LLC owned about 0.55% of Regal Rexnord worth $67,997,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Covestor Ltd lifted its holdings in shares of Regal Rexnord by 81.6% during the 4th quarter. Covestor Ltd now owns 178 shares of the company's stock worth $25,000 after acquiring an additional 80 shares during the period. Garner Asset Management Corp bought a new position in Regal Rexnord in the fourth quarter valued at approximately $27,000. IFP Advisors Inc increased its stake in Regal Rexnord by 34.0% in the fourth quarter. IFP Advisors Inc now owns 193 shares of the company's stock valued at $27,000 after acquiring an additional 49 shares during the last quarter. Geneos Wealth Management Inc. raised its position in Regal Rexnord by 135.1% during the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock valued at $25,000 after purchasing an additional 127 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new position in Regal Rexnord during the third quarter valued at approximately $35,000. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Regal Rexnord Stock Up 0.2%

NYSE:RRX opened at $207.29 on Monday. Regal Rexnord Corporation has a one year low of $127.96 and a one year high of $247.80. 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 company has a market cap of $13.80 billion, a PE ratio of 48.21, a P/E/G ratio of 1.94 and a beta of 1.08. The firm's 50 day simple moving average is $211.75 and its 200 day simple moving average is $197.65.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $2.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.11 by $0.06. The firm had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The company's revenue was up 4.3% on a year-over-year basis. During the same period in the prior year, the company posted $2.15 EPS. On average, research analysts anticipate that Regal Rexnord Corporation will post 10.64 earnings per share for the current year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th were issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Tuesday, June 30th. Regal Rexnord's dividend payout ratio is presently 32.56%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on RRX shares. JPMorgan Chase & Co. raised their target price on Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a report on Tuesday, May 26th. Wolfe Research set a $250.00 price target on Regal Rexnord in a report on Thursday, July 9th. Wall Street Zen lowered Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. Finally, DA Davidson initiated coverage on Regal Rexnord in a research note on Tuesday, June 16th. They set a "buy" rating and a $260.00 target price for the company. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $243.45.

Insider Activity at Regal Rexnord

In other Regal Rexnord news, CEO Louis V. Pinkham sold 22,509 shares of the company'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 sale, the chief executive officer owned 56,749 shares in the company, valued at approximately $12,012,628.32. The trade was a 28.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Robert Rehard sold 6,499 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $200.00, for a total value of $1,299,800.00. Following the completion of the sale, the chief financial officer directly owned 27,965 shares of the company's stock, valued at approximately $5,593,000. The trade was 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. Company insiders own 0.63% of the company's stock.

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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