Regal Rexnord (NYSE:RRX) Coverage Initiated by Analysts at DA Davidson

Key Points

• DA Davidson initiated coverage on Regal Rexnord with a buy rating and a $260 price target, implying about 18.5% upside from the stock’s current level.
• Recent analyst sentiment is generally positive: several firms have raised targets or kept bullish ratings, and the stock now carries a Moderate Buy consensus with an average target price of $237.80.
• Regal Rexnord reported better-than-expected quarterly results, with EPS of $2.17 and revenue of $1.48 billion, while the stock was trading around $219.35 after a 3.3% gain.

Stock analysts at DA Davidson started coverage on shares of Regal Rexnord (NYSE:RRX - Get Free Report) in a research report issued to clients and investors on Tuesday. The firm set a "buy" rating and a $260.00 price target on the stock. DA Davidson's target price points to a potential upside of 18.53% from the company's current price.

Several other research analysts have also weighed in on RRX. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research note on Tuesday, April 21st. KeyCorp upped their price objective on shares of Regal Rexnord from $255.00 to $265.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, April 28th. UBS Group set a $260.00 price objective on shares of Regal Rexnord in a research note on Monday. Finally, JPMorgan Chase & Co. upped their price objective on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $237.80.

Regal Rexnord Stock Up 3.3%

Shares of NYSE:RRX opened at $219.35 on Tuesday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17. The company has a market cap of $14.60 billion, a PE ratio of 51.01, a price-to-earnings-growth ratio of 2.00 and a beta of 1.11. Regal Rexnord has a 52 week low of $127.96 and a 52 week high of $236.35. The firm has a 50 day simple moving average of $205.99 and a 200 day simple moving average of $185.20.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $2.17 EPS for the quarter, beating the consensus estimate of $2.11 by $0.06. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm's quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.15 EPS. As a group, research analysts expect that Regal Rexnord will post 10.63 earnings per share for the current year.

Insider Transactions at Regal Rexnord

In other news, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the transaction, the director owned 5,503 shares in the company, valued at $1,176,816.55. This represents a 19.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Louis V. Pinkham sold 22,509 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.68, for a total transaction of $4,764,705.12. Following the transaction, the chief executive officer owned 56,749 shares in the company, valued at approximately $12,012,628.32. This trade represents a 28.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,305 shares of company stock worth $6,341,869 in the last 90 days. 0.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of RRX. Covestor Ltd increased its stake in shares of Regal Rexnord by 81.6% during the 4th quarter. Covestor Ltd now owns 178 shares of the company's stock worth $25,000 after purchasing an additional 80 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Regal Rexnord by 135.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after purchasing an additional 127 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new position in Regal Rexnord in the 3rd quarter valued at $27,000. Garner Asset Management Corp acquired a new position in Regal Rexnord in the 4th quarter valued at $27,000. Finally, IFP Advisors Inc grew its stake in Regal Rexnord by 34.0% in the 4th quarter. IFP Advisors Inc now owns 193 shares of the company's stock valued at $27,000 after buying an additional 49 shares during the last quarter. Institutional investors and hedge funds own 99.72% 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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