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

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

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

Regal Rexnord Stock Performance

Shares of RRX traded up $1.87 during trading hours on Friday, hitting $148.53. The company had a trading volume of 174,717 shares, compared to its average volume of 762,878. The business has a fifty day moving average of $147.34 and a 200-day moving average of $132.02. The company has a quick ratio of 0.93, a current ratio of 2.00 and a debt-to-equity ratio of 0.72. The firm has a market cap of $9.86 billion, a price-to-earnings ratio of 39.50, a PEG ratio of 1.47 and a beta of 1.18. Regal Rexnord has a 12 month low of $90.56 and a 12 month high of $185.28.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $2.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.42 by $0.06. The company 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 firm's revenue was down 3.3% compared to the same quarter last year. During the same period last year, the company earned $2.29 earnings per share. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. Equities analysts anticipate that Regal Rexnord will post 9.95 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th will be issued a $0.35 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $1.40 annualized dividend and a yield of 0.9%. Regal Rexnord's payout ratio is 37.23%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RRX. Geneos Wealth Management Inc. grew its stake in shares of Regal Rexnord by 35.3% in the 2nd quarter. Geneos Wealth Management Inc. now owns 299 shares of the company's stock worth $43,000 after buying an additional 78 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in shares of Regal Rexnord by 11.7% during the second quarter. CANADA LIFE ASSURANCE Co now owns 52,578 shares of the company's stock valued at $7,638,000 after acquiring an additional 5,518 shares in the last quarter. Corient Private Wealth LLC increased its stake in Regal Rexnord by 59.5% during the 2nd quarter. Corient Private Wealth LLC now owns 4,278 shares of the company's stock valued at $620,000 after purchasing an additional 1,596 shares in the last quarter. Captrust Financial Advisors raised its stake in shares of Regal Rexnord by 123.9% in the second quarter. Captrust Financial Advisors now owns 8,183 shares of the company's stock worth $1,186,000 after purchasing an additional 4,528 shares during the last quarter. Finally, Vident Advisory LLC purchased a new stake in shares of Regal Rexnord during the 2nd quarter valued at about $251,000. Hedge funds and other institutional investors own 99.72% of the company's stock.

Regal Rexnord Company Profile

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.