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

Key Points

• Wall Street Zen downgraded Regal Rexnord from a "strong-buy" rating to a "buy" rating.
• Several major analysts (JPMorgan, Oppenheimer, Barclays, KeyCorp) have raised target prices and kept positive ratings, and MarketBeat's consensus is a Moderate Buy with a $228.50 price target.
• Regal reported quarterly EPS of $2.51 (beating estimates) while revenue slightly missed, and executives sold a total of 53,451 shares in the past 90 days—including the CEO's sale of 36,728 shares—indicating notable insider selling.

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 research report issued on Sunday.

Several other equities analysts have also commented on RRX. Zacks Research upgraded Regal Rexnord from a "strong sell" rating to a "hold" rating in a research note on Tuesday, December 30th. JPMorgan Chase & Co. increased their target price on shares of Regal Rexnord from $190.00 to $230.00 and gave the stock an "overweight" rating in a report on Friday, February 6th. Oppenheimer increased their target price on shares of Regal Rexnord from $180.00 to $225.00 and gave the stock an "outperform" rating in a report on Friday, February 6th. Barclays increased their target price on shares of Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a report on Monday, March 23rd. Finally, KeyCorp increased their target price on shares of Regal Rexnord from $200.00 to $255.00 and gave the stock an "overweight" rating in a report on Tuesday, February 10th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Regal Rexnord has an average rating of "Moderate Buy" and a consensus target price of $228.50.

Regal Rexnord Stock Performance

Shares of Regal Rexnord stock opened at $208.69 on Friday. The stock's fifty day moving average is $200.11 and its two-hundred day moving average is $164.50. The company has a market capitalization of $13.89 billion, a PE ratio of 49.69, a price-to-earnings-growth ratio of 1.94 and a beta of 1.11. The company has a quick ratio of 1.10, a current ratio of 2.15 and a debt-to-equity ratio of 0.70. Regal Rexnord has a 52 week low of $93.11 and a 52 week high of $229.30.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $2.51 EPS for the quarter, beating the consensus estimate of $2.47 by $0.04. The company had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.Regal Rexnord's quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.34 EPS. As a group, analysts expect that Regal Rexnord will post 9.95 earnings per share for the current year.

Insiders Place Their Bets

In other Regal Rexnord news, EVP Cheryl Lewis sold 2,262 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $215.73, for a total value of $487,981.26. Following the completion of the sale, the executive vice president directly owned 13,219 shares in the company, valued at approximately $2,851,734.87. This trade represents a 14.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Louis V. Pinkham sold 36,728 shares of the stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $215.52, for a total value of $7,915,618.56. Following the completion of the sale, the chief executive officer owned 83,337 shares of the company's stock, valued at approximately $17,960,790.24. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 53,451 shares of company stock valued at $11,386,689. 0.63% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of RRX. Victory Capital Management Inc. raised its stake in shares of Regal Rexnord by 138.4% in the third quarter. Victory Capital Management Inc. now owns 3,968,101 shares of the company's stock worth $566,981,000 after purchasing an additional 2,303,373 shares during the last quarter. Norges Bank purchased a new position in shares of Regal Rexnord in the fourth quarter worth about $121,301,000. Viking Global Investors LP raised its stake in shares of Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock worth $497,231,000 after purchasing an additional 701,145 shares during the last quarter. Nordea Investment Management AB raised its stake in shares of Regal Rexnord by 30.7% in the third quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock worth $289,083,000 after purchasing an additional 476,802 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Regal Rexnord by 27.1% in the fourth quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after purchasing an additional 405,828 shares during the last quarter. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.