Regal Rexnord Corporation $RRX Shares Sold by First Trust Advisors LP

Key Points

• First Trust Advisors reduced its Regal Rexnord stake by 13.4% in the first quarter, selling 9,679 shares and retaining 62,758 shares worth about $11.8 million. Institutional investors collectively own 99.72% of the company.
• Analysts remain broadly positive, with eight Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $247. Deutsche Bank, DA Davidson and JPMorgan issued targets ranging from $240 to $286.
• Regal Rexnord beat quarterly expectations with $2.17 in EPS and $1.48 billion in revenue, while declaring a quarterly dividend of $0.35, equivalent to a 0.7% annual yield. Recent insider selling included sizable share reductions by the CEO and CFO.

First Trust Advisors LP cut its position in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 13.4% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 62,758 shares of the company's stock after selling 9,679 shares during the quarter. First Trust Advisors LP owned approximately 0.09% of Regal Rexnord worth $11,752,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Easterly Investment Partners LLC lifted its holdings in Regal Rexnord by 719.4% during the 4th quarter. Easterly Investment Partners LLC now owns 75,354 shares of the company's stock worth $10,574,000 after purchasing an additional 66,158 shares in the last quarter. Vontobel Holding Ltd. increased its position in shares of Regal Rexnord by 5.2% during the fourth quarter. Vontobel Holding Ltd. now owns 276,266 shares of the company's stock valued at $38,766,000 after buying an additional 13,564 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Regal Rexnord by 42.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 25,793 shares of the company's stock worth $3,619,000 after buying an additional 7,647 shares in the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Regal Rexnord by 42.6% in the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock worth $793,983,000 after buying an additional 1,690,264 shares in the last quarter. Finally, Handelsbanken Fonder AB boosted its position in shares of Regal Rexnord by 67.4% in the fourth quarter. Handelsbanken Fonder AB now owns 250,735 shares of the company's stock valued at $35,183,000 after acquiring an additional 100,916 shares during the period. Hedge funds and other institutional investors own 99.72% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Regal Rexnord in a report on Monday, July 20th. They issued a "buy" rating and a $286.00 price target for the company. Oppenheimer reiterated an "outperform" rating on shares of Regal Rexnord in a research report on Friday, July 10th. JPMorgan Chase & Co. lifted their price objective on Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Wall Street Zen cut Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Finally, DA Davidson assumed coverage on Regal Rexnord in a research note on Tuesday, June 16th. They issued a "buy" rating and a $260.00 target price on the stock. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $247.00.

Insider Activity at Regal Rexnord

In related news, CFO Robert Rehard sold 6,499 shares of Regal Rexnord stock in a transaction on 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 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 document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Louis V. Pinkham sold 22,509 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.68, for a total value of $4,764,705.12. Following the completion of the sale, the chief executive officer directly owned 56,749 shares of the company's stock, valued at approximately $12,012,628.32. This trade represents a 28.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 30,305 shares of company stock valued at $6,341,869. Insiders own 0.63% of the company's stock.

Regal Rexnord Trading Up 8.0%

Shares of RRX stock opened at $202.69 on Friday. The company has a quick ratio of 1.08, a current ratio of 2.17 and a debt-to-equity ratio of 0.69. The business has a 50-day moving average price of $213.09 and a two-hundred day moving average price of $201.40. Regal Rexnord Corporation has a 12-month low of $127.96 and a 12-month high of $247.80. The firm has a market cap of $13.49 billion, a P/E ratio of 47.14, a price-to-earnings-growth ratio of 1.24 and a beta of 1.08.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $2.17 EPS for the quarter, beating the consensus estimate of $2.11 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company's revenue was up 4.3% on a year-over-year basis. During the same period in the prior year, the company earned $2.15 EPS. Equities analysts anticipate that Regal Rexnord Corporation will post 10.65 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Wednesday, September 30th. Regal Rexnord's payout ratio is presently 32.56%.

Regal Rexnord Company 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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