Regal Rexnord (NYSE:RRX) Cut to Buy at Wall Street Zen

Key Points

• Regal Rexnord has been downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating, indicating a shift in analyst sentiment.
• Goldman Sachs lowered its price target for Regal Rexnord from $192 to $170, while Citigroup raised its target from $145 to $165, indicating mixed expectations from different analysts.
• Shares of Regal Rexnord are currently trading around $143.47, with a market capitalization of $9.52 billion and a P/E ratio of 38.16.

Regal Rexnord (NYSE:RRX - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Sunday.

RRX has been the subject of several other reports. JPMorgan Chase & Co. began coverage on Regal Rexnord in a report on Monday, September 15th. They set an "overweight" rating and a $200.00 target price for the company. Citigroup reaffirmed a "buy" rating and issued a $165.00 target price (up from $145.00) on shares of Regal Rexnord in a research report on Tuesday, June 24th. Barclays lowered their price objective on Regal Rexnord from $163.00 to $161.00 and set an "overweight" rating on the stock in a report on Tuesday, September 16th. The Goldman Sachs Group decreased their target price on Regal Rexnord from $192.00 to $170.00 and set a "buy" rating for the company in a research note on Tuesday, September 16th. Finally, KeyCorp set a $180.00 target price on Regal Rexnord and gave the company an "overweight" rating in a research note on Thursday, June 26th. Eight research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Regal Rexnord has a consensus rating of "Buy" and an average price target of $181.63.

Regal Rexnord Stock Up 0.8%

Regal Rexnord stock traded up $1.13 during midday trading on Friday, hitting $145.30. 297,177 shares of the company were exchanged, compared to its average volume of 758,751. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.00 and a quick ratio of 0.93. Regal Rexnord has a fifty-two week low of $90.56 and a fifty-two week high of $185.28. The company's fifty day moving average price is $147.48 and its 200-day moving average price is $133.87. The company has a market cap of $9.64 billion, a PE ratio of 38.67, a price-to-earnings-growth ratio of 1.44 and a beta of 1.18.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $2.48 earnings per share for the quarter, beating analysts' consensus estimates of $2.42 by $0.06. The business had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.50 billion. Regal Rexnord had a return on equity of 9.73% and a net margin of 4.28%.The business's quarterly revenue was down 3.3% on a year-over-year basis. During the same period in the previous year, the business earned $2.29 EPS. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. On average, research analysts predict that Regal Rexnord will post 9.95 EPS for the current fiscal year.

Hedge Funds Weigh In On Regal Rexnord

A number of hedge funds and other institutional investors have recently modified their holdings of RRX. Geneos Wealth Management Inc. boosted its stake in shares of Regal Rexnord by 135.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after buying an additional 127 shares during the last quarter. Allworth Financial LP boosted its stake in shares of Regal Rexnord by 85.7% in the 2nd quarter. Allworth Financial LP now owns 195 shares of the company's stock worth $28,000 after buying an additional 90 shares during the last quarter. Bernard Wealth Management Corp. purchased a new position in shares of Regal Rexnord in the 4th quarter worth approximately $31,000. Golden State Wealth Management LLC boosted its stake in shares of Regal Rexnord by 106.2% in the 1st quarter. Golden State Wealth Management LLC now owns 268 shares of the company's stock worth $31,000 after buying an additional 138 shares during the last quarter. Finally, Tobam boosted its stake in shares of Regal Rexnord by 54.8% in the 2nd quarter. Tobam now owns 308 shares of the company's stock worth $45,000 after buying an additional 109 shares during the last quarter. Hedge funds and other institutional investors own 99.72% of the company's stock.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.