Regal Rexnord Corporation Declares Quarterly Dividend of $0.35 (NYSE:RRX)

Key Points

• Quarterly dividend of $0.35 declared, payable July 14 to shareholders of record June 30, representing an annualized $1.40 and a yield of about 0.7%.
• The dividend appears well covered with a historical payout ratio of about 12.6% and analysts projecting a future payout ratio near 10.6% based on expected earnings.
• Shares trade near $213 with a P/E of ~50.8 and a $14.2 billion market cap, and analysts give a consensus rating of “Moderate Buy” with an average price target of roughly $229.75.

Regal Rexnord Corporation (NYSE:RRX - Get Free Report) announced a quarterly dividend on Monday, April 27th. Stockholders of record on Tuesday, June 30th will be paid a dividend of 0.35 per share on Tuesday, July 14th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Tuesday, June 30th.

Regal Rexnord has increased its dividend by an average of 0.0%per year over the last three years. Regal Rexnord has a payout ratio of 12.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Regal Rexnord to earn $13.23 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 10.6%.

Regal Rexnord Trading Up 0.5%

Shares of Regal Rexnord stock opened at $213.22 on Tuesday. The company's fifty day simple moving average is $200.75 and its 200-day simple moving average is $169.49. The company has a market cap of $14.19 billion, a price-to-earnings ratio of 50.77, a PEG ratio of 1.97 and a beta of 1.11. The company has a current ratio of 2.15, a quick ratio of 1.10 and a debt-to-equity ratio of 0.70. Regal Rexnord has a 1 year low of $102.23 and a 1 year high of $229.30.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $2.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.04. The business had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. Regal Rexnord's quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the company posted $2.34 earnings per share. As a group, sell-side analysts expect that Regal Rexnord will post 10.76 EPS for the current year.

Analyst Ratings Changes

Several research analysts recently commented on RRX shares. Zacks Research raised Regal Rexnord from a "strong sell" rating to a "hold" rating in a research report on Tuesday, December 30th. Citigroup raised their target price on Regal Rexnord from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Oppenheimer raised their target price on Regal Rexnord from $180.00 to $225.00 and gave the stock an "outperform" rating in a research report on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. Finally, JPMorgan Chase & Co. raised their target price on Regal Rexnord from $190.00 to $230.00 and gave the stock an "overweight" rating in a research report on Friday, February 6th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $229.75.

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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