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

Key Points

• Regal Rexnord's stock was downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, marking a shift in investor sentiment.
• Despite the downgrade, several firms have increased their price targets for Regal Rexnord, with Goldman Sachs raising it significantly from $173 to $195.
• Regal Rexnord reported a quarterly EPS of $2.48, outperforming analyst expectations, though its revenue declined 3.3% year-over-year.

Wall Street Zen lowered shares of Regal Rexnord (NYSE:RRX - Free Report) from a strong-buy rating to a buy rating in a research report report published on Saturday morning.

Several other equities analysts have also issued reports on the company. Robert W. Baird boosted their target price on Regal Rexnord from $167.00 to $172.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 7th. Citigroup restated a "buy" rating and set a $165.00 target price (up from $145.00) on shares of Regal Rexnord in a research report on Tuesday, June 24th. Barclays boosted their target price on Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 9th. The Goldman Sachs Group boosted their target price on Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a research report on Tuesday, July 8th. Finally, KeyCorp set a $180.00 price objective on Regal Rexnord and gave the company an "overweight" rating in a report on Thursday, June 26th. Eight equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Regal Rexnord has an average rating of "Buy" and an average target price of $185.25.

Regal Rexnord Trading Down 2.3%

Shares of Regal Rexnord stock traded down $3.4440 during trading on Friday, hitting $145.0260. 789,789 shares of the company were exchanged, compared to its average volume of 1,022,337. The firm has a market capitalization of $9.63 billion, a P/E ratio of 38.57, a price-to-earnings-growth ratio of 1.50 and a beta of 1.18. Regal Rexnord has a 1-year low of $90.56 and a 1-year high of $185.28. The firm's fifty day moving average price is $147.45 and its 200 day moving average price is $132.22. 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 (NYSE:RRX - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $2.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.42 by $0.06. The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.50 billion. Regal Rexnord had a return on equity of 9.73% and a net margin of 4.28%.The company's revenue for the quarter was down 3.3% compared to the same quarter last year. During the same period in the previous year, the company earned $2.29 EPS. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. As a group, sell-side analysts expect that Regal Rexnord will post 9.95 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $1.40 dividend on an annualized basis and a yield of 1.0%. Regal Rexnord's dividend payout ratio is 37.23%.

Institutional Investors Weigh In On Regal Rexnord

Several large investors have recently made changes to their positions in the stock. Jefferies Financial Group Inc. bought a new position in shares of Regal Rexnord in the 4th quarter valued at about $1,427,000. Avantax Advisory Services Inc. raised its position in shares of Regal Rexnord by 19.7% in the first quarter. Avantax Advisory Services Inc. now owns 3,152 shares of the company's stock valued at $359,000 after buying an additional 519 shares in the last quarter. Polar Asset Management Partners Inc. acquired a new stake in shares of Regal Rexnord during the 4th quarter worth $9,463,000. Pinebridge Investments L.P. grew its holdings in shares of Regal Rexnord by 42.7% during the 4th quarter. Pinebridge Investments L.P. now owns 19,024 shares of the company's stock worth $2,951,000 after purchasing an additional 5,693 shares in the last quarter. Finally, Polianta Ltd grew its holdings in shares of Regal Rexnord by 33.8% during the 1st quarter. Polianta Ltd now owns 9,100 shares of the company's stock worth $1,036,000 after purchasing an additional 2,300 shares in the last quarter. Institutional investors and hedge funds 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.