RBC Bearings (NYSE:RBC) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded RBC Bearings from "Buy" to "Hold, but the stock still carries a consensus "Buy" rating from analysts with an average price target of $574.67.
• RBC beat quarterly expectations, reporting $3.04 EPS vs. $2.83 expected and revenue up 17% year-over-year, with the share price trading around $553 (12‑month high $589, low $297).
• Valuation and ownership: the company commands a premium valuation (P/E ~65) and remains heavily held by institutions such as Vanguard, State Street and Artisan Partners.

RBC Bearings (NYSE:RBC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

Several other equities research analysts also recently issued reports on RBC. KeyCorp raised their price objective on shares of RBC Bearings from $595.00 to $680.00 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Deutsche Bank Aktiengesellschaft set a $527.00 target price on shares of RBC Bearings and gave the company a "buy" rating in a research note on Wednesday, December 17th. Truist Financial raised their price target on shares of RBC Bearings from $542.00 to $599.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. Zacks Research upgraded shares of RBC Bearings from a "hold" rating to a "strong-buy" rating in a report on Wednesday, February 11th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $600.00 price objective on shares of RBC Bearings in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, RBC Bearings presently has a consensus rating of "Buy" and an average target price of $574.67.

RBC Bearings Price Performance

Shares of NYSE:RBC opened at $553.13 on Friday. The business has a 50 day moving average price of $519.14 and a 200 day moving average price of $448.97. RBC Bearings has a twelve month low of $297.28 and a twelve month high of $589.16. The company has a market cap of $17.49 billion, a price-to-earnings ratio of 65.07, a PEG ratio of 3.12 and a beta of 1.47. The company has a quick ratio of 0.67, a current ratio of 1.86 and a debt-to-equity ratio of 0.22.

RBC Bearings (NYSE:RBC - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The industrial products company reported $3.04 EPS for the quarter, topping the consensus estimate of $2.83 by $0.21. RBC Bearings had a return on equity of 10.86% and a net margin of 15.00%.The company had revenue of $461.60 million for the quarter, compared to the consensus estimate of $460.69 million. During the same period in the previous year, the business posted $2.34 EPS. The company's revenue for the quarter was up 17.0% on a year-over-year basis. Research analysts predict that RBC Bearings will post 9.16 earnings per share for the current year.

Institutional Investors Weigh In On RBC Bearings

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in shares of RBC Bearings by 0.4% in the 2nd quarter. Vanguard Group Inc. now owns 2,946,581 shares of the industrial products company's stock valued at $1,133,844,000 after buying an additional 13,061 shares in the last quarter. State Street Corp boosted its position in shares of RBC Bearings by 0.5% during the 3rd quarter. State Street Corp now owns 919,259 shares of the industrial products company's stock valued at $358,778,000 after acquiring an additional 4,568 shares in the last quarter. Artisan Partners Limited Partnership boosted its position in shares of RBC Bearings by 51.7% during the 3rd quarter. Artisan Partners Limited Partnership now owns 619,592 shares of the industrial products company's stock valued at $241,821,000 after acquiring an additional 211,093 shares in the last quarter. Geode Capital Management LLC increased its stake in RBC Bearings by 8.5% in the fourth quarter. Geode Capital Management LLC now owns 619,314 shares of the industrial products company's stock valued at $277,776,000 after acquiring an additional 48,419 shares during the period. Finally, Maren Capital LLC increased its stake in RBC Bearings by 1.4% in the fourth quarter. Maren Capital LLC now owns 450,314 shares of the industrial products company's stock valued at $201,934,000 after acquiring an additional 6,373 shares during the period.

About RBC Bearings

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.

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