Regal Rexnord Corporation (NYSE:RRX) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Regal Rexnord has a consensus analyst rating of "Moderate Buy", with six buy ratings and three hold ratings. The average 1-year price target from analysts is $231.
• The company recently beat quarterly earnings and revenue expectations, reporting EPS of $2.17 versus the $2.11 estimate and revenue of $1.48 billion versus the $1.43 billion forecast. Revenue rose 4.3% year over year.
• Regal Rexnord also announced a quarterly dividend of $0.35 per share, payable July 14, for an annualized yield of about 0.7%. Meanwhile, insider selling has continued, including recent sales by the CFO and a director.

Shares of Regal Rexnord Corporation (NYSE:RRX - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the nine ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $231.00.

A number of brokerages recently commented on RRX. JPMorgan Chase & Co. raised their price target on Regal Rexnord from $190.00 to $230.00 and gave the stock an "overweight" rating in a research note on Friday, February 6th. Citigroup boosted their price target on Regal Rexnord from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. The Goldman Sachs Group increased their price objective on shares of Regal Rexnord from $170.00 to $230.00 and gave the company a "buy" rating in a research report on Monday, February 9th. Robert W. Baird set a $253.00 target price on Regal Rexnord in a research note on Friday, February 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regal Rexnord in a report on Tuesday, April 21st.

Regal Rexnord Price Performance

Shares of Regal Rexnord stock opened at $196.96 on Friday. The business's 50 day simple moving average is $199.13 and its two-hundred day simple moving average is $175.02. Regal Rexnord has a one year low of $127.96 and a one year high of $236.35. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. The stock has a market capitalization of $13.11 billion, a P/E ratio of 45.81, a price-to-earnings-growth ratio of 1.95 and a beta of 1.15.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $2.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.11 by $0.06. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The company's revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.15 EPS. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS. Analysts forecast that Regal Rexnord will post 10.63 EPS for the current year.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord's payout ratio is currently 32.56%.

Insider Activity at Regal Rexnord

In related news, CFO Robert Rehard sold 1,289 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $223.13, for a total value of $287,614.57. Following the completion of the sale, the chief financial officer directly owned 35,415 shares of the company's stock, valued at approximately $7,902,148.95. This represents a 3.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $213.85, for a total transaction of $277,363.45. Following the completion of the sale, the director directly owned 5,503 shares of the company's stock, valued at approximately $1,176,816.55. This trade represents a 19.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 26,063 shares of company stock worth $5,545,547. 0.63% of the stock is owned by company insiders.

Hedge Funds Weigh In On Regal Rexnord

Several institutional investors have recently bought and sold shares of the stock. Victory Capital Management Inc. grew its holdings in shares of Regal Rexnord by 42.6% in the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock valued at $793,983,000 after purchasing an additional 1,690,264 shares in the last quarter. Viking Global Investors LP grew its holdings in Regal Rexnord by 25.7% during the 2nd quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock valued at $497,231,000 after purchasing an additional 701,145 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Regal Rexnord by 5.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company's stock valued at $355,031,000 after buying an additional 131,171 shares during the last quarter. Invesco Ltd. increased its stake in Regal Rexnord by 27.1% in the fourth quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after purchasing an additional 405,828 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in Regal Rexnord by 115.5% in the 1st quarter. Bank of New York Mellon Corp now owns 1,836,264 shares of the company's stock worth $343,859,000 after buying an additional 984,185 shares during the period. 99.72% of the stock is owned by hedge funds and other institutional investors.

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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