RBC Bearings (NYSE:RBC) Sets New 52-Week High - Should You Buy?

Key Points

• 52-week high: RBC Bearings hit a new 52-week high of $592.14 (last at $592.52) and is trading above the analysts' average price target of $574.67, while some brokers have higher targets (KeyCorp $680, Morgan Stanley $600, Truist $599).
• Earnings beat and growth: The company reported Q EPS of $3.04 vs. $2.83 expected and revenue rose 17% year-over-year, with analysts forecasting full-year EPS of about $9.16.
• Valuation and institutional buying: RBC carries a market cap of $18.8B and a high P/E of 70.06, yet major institutions (State Street, Artisan, Geode, Invesco) have recently increased their holdings.

RBC Bearings Incorporated (NYSE:RBC - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $592.14 and last traded at $592.5240, with a volume of 37011 shares trading hands. The stock had previously closed at $580.55.

Analysts Set New Price Targets

RBC has been the subject of a number of research reports. Morgan Stanley reissued an "overweight" rating and set a $600.00 price target on shares of RBC Bearings in a research note on Friday, February 6th. Deutsche Bank Aktiengesellschaft set a $527.00 price target on RBC Bearings and gave the company a "buy" rating in a research note on Wednesday, December 17th. KeyCorp increased their price target on RBC Bearings from $595.00 to $680.00 and gave the company an "overweight" rating in a research note on Monday, March 2nd. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $542.00 price objective on shares of RBC Bearings in a research note on Monday, February 9th. Finally, Truist Financial raised their price objective on RBC Bearings from $542.00 to $599.00 and gave the company a "buy" rating in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $574.67.

RBC Bearings Price Performance

The firm has a market capitalization of $18.83 billion, a P/E ratio of 70.06, a price-to-earnings-growth ratio of 2.64 and a beta of 1.49. The firm has a 50 day moving average price of $548.85 and a 200-day moving average price of $474.90. The company has a current ratio of 1.86, a quick ratio of 0.67 and a debt-to-equity ratio of 0.22.

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

Institutional Investors Weigh In On RBC Bearings

Several hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp raised its holdings in shares of RBC Bearings by 0.5% in the third quarter. State Street Corp now owns 919,259 shares of the industrial products company's stock worth $358,778,000 after buying an additional 4,568 shares during the period. Artisan Partners Limited Partnership raised its holdings in shares of RBC Bearings by 51.7% in the third quarter. Artisan Partners Limited Partnership now owns 619,592 shares of the industrial products company's stock worth $241,821,000 after buying an additional 211,093 shares during the period. Geode Capital Management LLC raised its holdings in shares of 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 worth $277,776,000 after buying an additional 48,419 shares during the period. Maren Capital LLC raised its holdings in shares of RBC Bearings by 1.4% in the fourth quarter. Maren Capital LLC now owns 450,314 shares of the industrial products company's stock worth $201,934,000 after buying an additional 6,373 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of RBC Bearings by 6.2% in the fourth quarter. Invesco Ltd. now owns 404,777 shares of the industrial products company's stock worth $181,514,000 after buying an additional 23,616 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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