Regal Rexnord (NYSE:RRX) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Regal Rexnord was downgraded by Wall Street Zen from “strong-buy” to “buy”, though the broader analyst view remains positive with a Moderate Buy consensus and a $243.45 average price target.
• The stock was down 2.2% and opened at $207.29, below its consensus target but still within a strong range relative to its 52-week low of $127.96 and high of $247.80.
• The company recently beat quarterly earnings expectations, reporting EPS of $2.17 versus $2.11 expected and revenue of $1.48 billion versus $1.43 billion expected, while insiders also sold shares in recent months.

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

Other equities analysts have also recently issued research reports about the company. Wolfe Research set a $250.00 price target on Regal Rexnord in a report on Thursday, July 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Regal Rexnord in a report on Tuesday, April 21st. JPMorgan Chase & Co. upped their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. Oppenheimer reaffirmed an "outperform" rating on shares of Regal Rexnord in a research note on Friday, July 10th. Finally, KeyCorp lifted their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $243.45.

Regal Rexnord Stock Down 2.2%

NYSE:RRX opened at $207.29 on Friday. The stock's fifty day moving average price is $211.75 and its two-hundred day moving average price is $197.27. Regal Rexnord has a 52-week low of $127.96 and a 52-week high of $247.80. 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 $13.80 billion, a price-to-earnings ratio of 48.21, a P/E/G ratio of 1.99 and a beta of 1.08.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $2.17 EPS for the quarter, beating analysts' consensus estimates of $2.11 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The business's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the company earned $2.15 EPS. On average, analysts anticipate that Regal Rexnord will post 10.64 EPS for the current year.

Insider Transactions at Regal Rexnord

In related news, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $213.85, for a total value of $277,363.45. Following the sale, the director directly owned 5,503 shares in the company, valued at $1,176,816.55. This trade represents a 19.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord stock in a transaction that occurred 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 directly owned 56,749 shares in the company, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 30,305 shares of company stock worth $6,341,869. 0.63% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Regal Rexnord

Several large investors have recently bought and sold shares of the company. Victory Capital Management Inc. grew its holdings in shares of Regal Rexnord by 42.6% in the 4th quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock valued at $793,983,000 after buying an additional 1,690,264 shares during the period. Bank of New York Mellon Corp increased its position in shares of 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 valued at $343,859,000 after buying an additional 984,185 shares in the last quarter. Bessemer Group Inc. raised its stake in Regal Rexnord by 4,155.4% during the 1st quarter. Bessemer Group Inc. now owns 916,054 shares of the company's stock worth $171,541,000 after buying an additional 894,527 shares during the period. Norges Bank acquired a new stake in Regal Rexnord during the 4th quarter worth $121,301,000. Finally, Viking Global Investors LP lifted its holdings in Regal Rexnord by 25.7% during the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock worth $497,231,000 after acquiring an additional 701,145 shares in the last quarter. Institutional investors own 99.72% of the company's stock.

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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