Regal Rexnord Corporation $RRX Shares Sold by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management cut its Regal Rexnord stake by 8.6% in the fourth quarter, selling 223,280 shares and leaving it with 2.36 million shares valued at about $331.4 million.
• Regal Rexnord reported better-than-expected first-quarter results, posting EPS of $2.17 versus the $2.11 estimate and revenue of $1.48 billion versus $1.43 billion expected, with revenue up 4.3% year over year.
• The company also announced a quarterly dividend of $0.35 per share, while analysts currently rate the stock a Moderate Buy with an average target price of $231.00.

Diamond Hill Capital Management Inc. reduced its stake in shares of Regal Rexnord Corporation (NYSE:RRX - Free Report) by 8.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,361,604 shares of the company's stock after selling 223,280 shares during the period. Regal Rexnord makes up approximately 1.7% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 19th biggest holding. Diamond Hill Capital Management Inc. owned 3.56% of Regal Rexnord worth $331,380,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in RRX. Global Retirement Partners LLC lifted its position in Regal Rexnord by 210.9% during the 4th quarter. Global Retirement Partners LLC now owns 2,229 shares of the company's stock worth $313,000 after acquiring an additional 1,512 shares during the period. Bastion Asset Management Inc. acquired a new position in shares of Regal Rexnord in the fourth quarter valued at about $6,669,000. IFP Advisors Inc raised its stake in shares of Regal Rexnord by 34.0% in the fourth quarter. IFP Advisors Inc now owns 193 shares of the company's stock worth $27,000 after purchasing an additional 49 shares during the last quarter. Covestor Ltd raised its stake in shares of Regal Rexnord by 81.6% in the fourth quarter. Covestor Ltd now owns 178 shares of the company's stock worth $25,000 after purchasing an additional 80 shares during the last quarter. Finally, Larson Financial Group LLC lifted its holdings in shares of Regal Rexnord by 53.4% during the fourth quarter. Larson Financial Group LLC now owns 523 shares of the company's stock worth $73,000 after purchasing an additional 182 shares during the period. 99.72% of the stock is owned by hedge funds and other institutional investors.

Regal Rexnord Trading Up 0.9%

Regal Rexnord stock opened at $197.01 on Friday. The firm has a market cap of $13.11 billion, a PE ratio of 45.82, a P/E/G ratio of 1.84 and a beta of 1.15. Regal Rexnord Corporation has a 12 month low of $127.96 and a 12 month high of $236.35. The stock's 50 day simple moving average is $198.82 and its two-hundred day simple moving average is $176.52. The company has a current ratio of 2.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.69.

Regal Rexnord (NYSE:RRX - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $2.17 earnings per share for the quarter, beating the consensus estimate of $2.11 by $0.06. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same period in the previous year, the firm earned $2.15 EPS. The business's quarterly revenue was up 4.3% on a year-over-year basis. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS. Analysts anticipate that Regal Rexnord Corporation will post 10.63 earnings per share for the current year.

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be given a $0.35 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.7%. Regal Rexnord's dividend payout ratio is 32.56%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on RRX shares. JPMorgan Chase & Co. increased their price target on shares of Regal Rexnord from $190.00 to $230.00 and gave the stock an "overweight" rating in a report on Friday, February 6th. The Goldman Sachs Group upped their price objective on shares of Regal Rexnord from $170.00 to $230.00 and gave the company a "buy" rating in a report on Monday, February 9th. KeyCorp increased their price objective 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. Robert W. Baird set a $253.00 target price on shares of Regal Rexnord in a report on Friday, February 6th. Finally, Wall Street Zen downgraded shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, April 28th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Regal Rexnord has an average rating of "Moderate Buy" and an average target price of $231.00.

Insider Transactions at Regal Rexnord

In related news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord 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 completion of the transaction, the chief executive officer owned 56,749 shares in the company, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert Rehard sold 968 shares of the company's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $223.00, for a total value of $215,864.00. Following the completion of the transaction, the chief financial officer directly owned 34,447 shares of the company's stock, valued at $7,681,681. The trade was a 2.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,063 shares of company stock valued at $5,545,547 in the last ninety days. 0.63% of the stock is currently owned by corporate insiders.

Regal Rexnord Profile

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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