Regal Rexnord Corporation $RRX Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC cut its stake in Regal Rexnord by 32.3% in the fourth quarter, selling 13,438 shares and leaving it with 28,173 shares valued at about $3.96 million.
• Company insiders were also selling: CEO Louis V. Pinkham and CFO Robert Rehard both reduced their holdings, and insiders sold 30,305 shares worth $6.34 million over the last 90 days.
• Regal Rexnord reported solid quarterly results, beating earnings and revenue estimates, while analysts remain broadly positive with a consensus Moderate Buy rating and an average price target of $237.80.

Hsbc Holdings PLC cut its stake in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 32.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 28,173 shares of the company's stock after selling 13,438 shares during the period. Hsbc Holdings PLC's holdings in Regal Rexnord were worth $3,964,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. IFP Advisors Inc raised its position in Regal Rexnord by 34.0% in the 4th quarter. IFP Advisors Inc now owns 193 shares of the company's stock valued at $27,000 after purchasing an additional 49 shares in the last quarter. Parallel Advisors LLC raised its holdings in Regal Rexnord by 6.5% in the fourth quarter. Parallel Advisors LLC now owns 888 shares of the company's stock valued at $125,000 after acquiring an additional 54 shares in the last quarter. Northwestern Mutual Investment Management Company LLC raised its holdings in Regal Rexnord by 0.4% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 14,855 shares of the company's stock valued at $2,084,000 after acquiring an additional 60 shares in the last quarter. UMB Bank n.a. lifted its stake in Regal Rexnord by 6.2% in the fourth quarter. UMB Bank n.a. now owns 1,023 shares of the company's stock worth $144,000 after acquiring an additional 60 shares during the last quarter. Finally, Allworth Financial LP lifted its stake in Regal Rexnord by 35.9% in the third quarter. Allworth Financial LP now owns 265 shares of the company's stock worth $38,000 after acquiring an additional 70 shares during the last quarter. 99.72% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.68, for a total transaction of $4,764,705.12. Following the sale, the chief executive officer directly owned 56,749 shares in the company, valued at $12,012,628.32. This trade represents a 28.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Robert Rehard sold 6,499 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the completion of the sale, the chief financial officer directly owned 27,965 shares of the company's stock, valued at approximately $5,593,000. This trade represents a 18.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 30,305 shares of company stock worth $6,341,869 in the last ninety days. 0.63% of the stock is owned by corporate insiders.

Regal Rexnord Stock Performance

Shares of RRX opened at $220.63 on Monday. The company has a market capitalization of $14.69 billion, a price-to-earnings ratio of 51.31, a price-to-earnings-growth ratio of 2.06 and a beta of 1.11. Regal Rexnord Corporation has a 52-week low of $127.96 and a 52-week high of $236.35. 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 stock has a 50 day moving average price of $210.45 and a 200 day moving average price of $190.24.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter last year, the company earned $2.15 earnings per share. Research analysts predict that Regal Rexnord Corporation will post 10.64 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord's dividend payout ratio (DPR) is 32.56%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on RRX shares. KeyCorp increased their price objective on shares of Regal Rexnord from $255.00 to $265.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. UBS Group set a $260.00 price objective on shares of Regal Rexnord in a research report on Monday, June 15th. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research note on Tuesday, April 21st. DA Davidson initiated coverage on Regal Rexnord in a report on Tuesday, June 16th. They issued a "buy" rating and a $260.00 target price on the stock. Finally, Barclays increased their target price on Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, March 23rd. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $237.80.

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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