Hsbc Holdings PLC Purchases 4,153 Shares of Regal Rexnord Corporation $RRX

Key Points

• Hsbc Holdings PLC has increased its stake in Regal Rexnord Corporation by 77.1%, owning 9,543 shares valued at approximately $1.08 million as of the end of the most recent quarter.
• Regal Rexnord reported a quarterly earnings per share of $2.48, exceeding analyst estimates and indicating a revenue of $1.50 billion, despite a year-over-year decrease of 3.3%.
• The company declared a quarterly dividend of $0.35 per share, to be paid on October 14th, representing an annual yield of 0.9% based on its current payout ratio of 37.23%.

Hsbc Holdings PLC lifted its stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 77.1% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 9,543 shares of the company's stock after purchasing an additional 4,153 shares during the period. Hsbc Holdings PLC's holdings in Regal Rexnord were worth $1,081,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in RRX. Nuveen LLC bought a new position in shares of Regal Rexnord in the 1st quarter worth $117,996,000. Invesco Ltd. boosted its position in shares of Regal Rexnord by 76.3% in 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 last quarter. Nuveen Asset Management LLC boosted its position in shares of Regal Rexnord by 79.8% in 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 last quarter. Dimensional Fund Advisors LP boosted its position in shares of Regal Rexnord by 30.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,712,297 shares of the company's stock worth $194,955,000 after purchasing an additional 396,737 shares during the last quarter. Finally, Alyeska Investment Group L.P. boosted its position in shares of Regal Rexnord by 425.4% in the 4th quarter. Alyeska Investment Group L.P. now owns 400,050 shares of the company's stock worth $62,060,000 after purchasing an additional 323,904 shares during the last quarter. 99.72% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have weighed in on RRX shares. Robert W. Baird lifted their target price on Regal Rexnord from $167.00 to $172.00 and gave the stock an "outperform" rating in a report on Wednesday, May 7th. The Goldman Sachs Group lifted their target price on Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Citigroup reiterated a "buy" rating and set a $165.00 target price (up from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. Wall Street Zen upgraded Regal Rexnord from a "buy" rating to a "strong-buy" rating in a report on Sunday, August 24th. Finally, Barclays lifted their price target on Regal Rexnord from $160.00 to $165.00 and gave the company an "overweight" rating in a research note on Wednesday, July 9th. Eight research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $185.25.

Regal Rexnord Stock Performance

NYSE RRX traded down $5.00 during trading on Wednesday, reaching $141.16. 417,426 shares of the company's stock were exchanged, compared to its average volume of 755,848. The business has a 50 day moving average price of $149.16 and a 200-day moving average price of $132.62. The stock has a market capitalization of $9.37 billion, a P/E ratio of 37.58, a PEG ratio of 1.50 and a beta of 1.18. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.00 and a quick ratio of 0.93. Regal Rexnord Corporation has a fifty-two week low of $90.56 and a fifty-two week high of $185.28.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $2.48 earnings per share for the quarter, topping analysts' consensus estimates of $2.42 by $0.06. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.50 billion. Regal Rexnord had a return on equity of 9.73% and a net margin of 4.28%.The business's revenue was down 3.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.29 earnings per share. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. Sell-side analysts forecast that Regal Rexnord Corporation will post 9.95 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 30th. Regal Rexnord's payout ratio is 37.23%.

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.