Regal Rexnord Corporation $RRX Stock Position Raised by Schroder Investment Management Group

Key Points

• Schroder Investment Management raised its stake in Regal Rexnord by 27.9% to 384,560 shares (about $55.4M), while institutional ownership stands at 99.72% and large holders like Nordea now own over 2.0M shares (~$289M).
• Wall Street has been lifting targets—Goldman Sachs, Citi and JPMorgan raised theirs to around $230 and KeyCorp to $255—leaving an average target of $227.50 and an overall analyst consensus of "Moderate Buy."
• Regal Rexnord slightly beat EPS expectations ($2.51 vs. $2.47) with revenue up 4.3% YoY despite a small revenue miss, has a market cap of ~$13.4B and pays a quarterly dividend of $0.35 (0.7% yield), while insiders sold roughly $11.4M of stock in the past 90 days.

Schroder Investment Management Group increased its position in Regal Rexnord Corporation (NYSE:RRX - Free Report) by 27.9% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 384,560 shares of the company's stock after purchasing an additional 83,871 shares during the period. Schroder Investment Management Group owned about 0.58% of Regal Rexnord worth $55,384,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. lifted its position in Regal Rexnord by 475.2% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 21,991 shares of the company's stock worth $3,154,000 after buying an additional 18,168 shares in the last quarter. Granite Investment Partners LLC purchased a new position in shares of Regal Rexnord during the 2nd quarter valued at $1,309,000. Nordea Investment Management AB increased its stake in shares of Regal Rexnord by 30.7% in the third quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock worth $289,083,000 after acquiring an additional 476,802 shares during the last quarter. American Century Companies Inc. purchased a new stake in shares of Regal Rexnord during the third quarter worth $47,778,000. Finally, Prudential Financial Inc. raised its holdings in shares of Regal Rexnord by 233.6% during the second quarter. Prudential Financial Inc. now owns 45,281 shares of the company's stock worth $6,564,000 after acquiring an additional 31,709 shares in the last quarter. 99.72% of the stock is owned by institutional investors and hedge funds.

Regal Rexnord Stock Up 2.7%

Shares of RRX stock opened at $201.28 on Wednesday. Regal Rexnord Corporation has a 12 month low of $90.56 and a 12 month high of $229.30. The company has a quick ratio of 1.10, a current ratio of 2.15 and a debt-to-equity ratio of 0.70. The firm has a market cap of $13.38 billion, a PE ratio of 47.92, a price-to-earnings-growth ratio of 1.82 and a beta of 1.05. The stock has a 50 day moving average of $183.87 and a 200-day moving average of $157.51.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $2.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.47 by $0.04. The business had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. Regal Rexnord's revenue was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.34 earnings per share. On average, equities analysts predict that Regal Rexnord Corporation will post 9.95 EPS for the current year.

Regal Rexnord Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.35 per share. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 annualized dividend and a dividend yield of 0.7%. Regal Rexnord's payout ratio is presently 33.33%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on RRX shares. The Goldman Sachs Group upped their target price on Regal Rexnord from $170.00 to $230.00 and gave the stock a "buy" rating in a research report on Monday, February 9th. Citigroup increased their price objective on Regal Rexnord from $180.00 to $230.00 and gave the stock a "buy" rating in a report on Monday, February 9th. JPMorgan Chase & Co. lifted their target price on shares of Regal Rexnord from $190.00 to $230.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. KeyCorp boosted their target price on shares of Regal Rexnord from $200.00 to $255.00 and gave the stock an "overweight" rating in a research report on Tuesday, February 10th. Finally, Jefferies Financial Group downgraded shares of Regal Rexnord from a "buy" rating to a "hold" rating and cut their price target for the company from $170.00 to $160.00 in a report on Wednesday, December 10th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $227.50.

Insider Activity at Regal Rexnord

In other news, Director Curtis W. Stoelting sold 4,500 shares of the company's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $180.00, for a total transaction of $810,000.00. Following the completion of the transaction, the director owned 15,617 shares of the company's stock, valued at approximately $2,811,060. This represents a 22.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Robert Rehard sold 7,704 shares of Regal Rexnord stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $216.72, for a total value of $1,669,610.88. Following the sale, the chief financial officer directly owned 34,154 shares in the company, valued at approximately $7,401,854.88. This trade represents a 18.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 53,451 shares of company stock worth $11,386,689 over the last ninety days. Corporate insiders own 0.82% of the company's stock.

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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