Nuveen LLC Makes New $118 Million Investment in Regal Rexnord Corporation (NYSE:RRX)

Key Points

• Nuveen LLC acquired approximately $118 million worth of Regal Rexnord Corporation (NYSE:RRX) shares, making up about 1.56% of the company's total stock ownership.
• Regal Rexnord reported $2.48 earnings per share (EPS) for the last quarter, beating estimates and showing a 3.3% year-over-year decline in revenue.
• The company announced a quarterly dividend of $0.35 per share, representing a 1.0% dividend yield with a payout ratio of 37.23%.

Nuveen LLC purchased a new stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 1,036,419 shares of the company's stock, valued at approximately $117,996,000. Nuveen LLC owned 1.56% of Regal Rexnord at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of RRX. Invesco Ltd. raised its stake in shares of Regal Rexnord by 76.3% during the 1st quarter. Invesco Ltd. now owns 932,829 shares of the company's stock worth $106,203,000 after purchasing an additional 403,845 shares during the period. Nuveen Asset Management LLC raised its stake in shares of Regal Rexnord by 79.8% during the 4th quarter. Nuveen Asset Management LLC now owns 899,688 shares of the company's stock worth $139,569,000 after purchasing an additional 399,267 shares during the period. Cartenna Capital LP bought a new stake in Regal Rexnord in the 4th quarter valued at about $55,900,000. Alyeska Investment Group L.P. raised its stake in Regal Rexnord by 425.4% in the 4th quarter. Alyeska Investment Group L.P. now owns 400,050 shares of the company's stock valued at $62,060,000 after acquiring an additional 323,904 shares during the period. Finally, Victory Capital Management Inc. raised its stake in Regal Rexnord by 11.9% in the 1st quarter. Victory Capital Management Inc. now owns 2,436,848 shares of the company's stock valued at $277,435,000 after acquiring an additional 259,885 shares during the period. Institutional investors and hedge funds own 99.72% of the company's stock.

Regal Rexnord Price Performance

Shares of RRX stock traded down $6.05 during trading on Thursday, hitting $148.52. The company had a trading volume of 1,054,587 shares, compared to its average volume of 1,014,497. The company has a quick ratio of 0.93, a current ratio of 2.00 and a debt-to-equity ratio of 0.72. The stock's 50-day moving average is $147.14 and its two-hundred day moving average is $132.62. The stock has a market capitalization of $9.86 billion, a price-to-earnings ratio of 39.50, a price-to-earnings-growth ratio of 1.56 and a beta of 1.18. Regal Rexnord Corporation has a 52 week low of $90.56 and a 52 week high of $185.28.

Regal Rexnord (NYSE:RRX - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $2.48 earnings per share for the quarter, topping the consensus estimate of $2.42 by $0.06. The company had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.50 billion. Regal Rexnord had a net margin of 4.28% and a return on equity of 9.73%. Regal Rexnord's revenue for the quarter was down 3.3% compared to the same quarter last year. During the same period in the prior year, the business earned $2.29 earnings per share. As a group, analysts predict that Regal Rexnord Corporation will post 9.95 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, September 30th. Regal Rexnord's dividend payout ratio is 37.23%.

Analysts Set New Price Targets

A number of brokerages recently issued reports on RRX. Robert W. Baird boosted their price objective on Regal Rexnord from $167.00 to $172.00 and gave the company an "outperform" rating in a research note on Wednesday, May 7th. Barclays boosted their price objective on Regal Rexnord from $160.00 to $165.00 and gave the company an "overweight" rating in a research note on Wednesday, July 9th. The Goldman Sachs Group boosted their price objective on Regal Rexnord from $173.00 to $195.00 and gave the company a "buy" rating in a research note on Tuesday, July 8th. KeyCorp set a $180.00 price objective on Regal Rexnord and gave the company an "overweight" rating in a research note on Thursday, June 26th. Finally, Citigroup reaffirmed a "buy" rating and set a $165.00 target price (up previously from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. Eight research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $185.25.

Regal Rexnord Company Profile

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.