Mediolanum International Funds Ltd Reduces Stock Holdings in Regal Rexnord Corporation $RRX

Key Points

• Mediolanum International Funds Ltd cut its Regal Rexnord stake by 9.2% in the first quarter, leaving it with 113,845 shares valued at about $20.3 million.
• Insider selling has also been notable: CFO Robert Rehard and Director Robin A. Walker-Lee both sold shares, and insiders sold a total of 30,305 shares worth $6.34 million over the last three months.
• Despite those sales, analysts remain broadly positive on RRX, with eight Buy ratings, three Holds, and a consensus price target of $243.45; the company also beat quarterly earnings and revenue estimates and paid a $0.35 quarterly dividend.

Mediolanum International Funds Ltd lowered its holdings in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 9.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 113,845 shares of the company's stock after selling 11,509 shares during the quarter. Mediolanum International Funds Ltd owned 0.17% of Regal Rexnord worth $20,286,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Victory Capital Management Inc. lifted its position 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 purchasing an additional 1,690,264 shares during the period. Bank of New York Mellon Corp grew its position in Regal Rexnord by 115.5% during the 1st quarter. Bank of New York Mellon Corp now owns 1,836,264 shares of the company's stock worth $343,859,000 after purchasing an additional 984,185 shares during the period. Bessemer Group Inc. grew its position in Regal Rexnord by 4,155.4% during the 1st quarter. Bessemer Group Inc. now owns 916,054 shares of the company's stock worth $171,541,000 after purchasing an additional 894,527 shares during the period. Norges Bank purchased a new position in shares of Regal Rexnord during the 4th quarter valued at about $121,301,000. Finally, Viking Global Investors LP raised its stake 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 valued at $497,231,000 after buying an additional 701,145 shares during the last quarter. Hedge funds and other institutional investors own 99.72% of the company's stock.

Insider Transactions at Regal Rexnord

In other news, CFO Robert Rehard sold 6,499 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was 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 $5,593,000. This trade represents a 18.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction that occurred 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 transaction, the director owned 5,503 shares in the company, valued at $1,176,816.55. This trade represents a 19.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 30,305 shares of company stock valued at $6,341,869 in the last three months. 0.63% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on RRX shares. Oppenheimer restated an "outperform" rating on shares of Regal Rexnord in a research note on Friday, July 10th. UBS Group set a $260.00 price target on Regal Rexnord in a report on Monday, June 15th. KeyCorp upped their price objective on Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Wall Street Zen cut shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regal Rexnord in a report on Tuesday, April 21st. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $243.45.

Regal Rexnord Price Performance

NYSE:RRX opened at $207.29 on Monday. The company has a quick ratio of 1.08, a current ratio of 2.17 and a debt-to-equity ratio of 0.69. Regal Rexnord Corporation has a 52 week low of $127.96 and a 52 week high of $247.80. The stock's 50-day moving average price is $211.75 and its 200-day moving average price is $197.65. The stock has a market capitalization of $13.80 billion, a PE ratio of 48.21, a price-to-earnings-growth ratio of 1.94 and a beta of 1.08.

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

Regal Rexnord Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Tuesday, June 30th. Regal Rexnord's dividend payout ratio 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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