Regal Rexnord (NYSE:RRX) Sets New 52-Week High - Still a Buy?

Key Points

• 52-week high: RRX reached a new 52-week high of $232.67 (last at $231.61) as several brokers raised price targets, and MarketBeat shows an average target of $229.75 with an overall analyst consensus of "Moderate Buy".
• Fundamentals: the company has a $15.44B market cap, P/E of 55.23 and PEG of 1.98; quarterly EPS of $2.51 topped estimates, revenue was up 4.3% YoY, and Regal Rexnord pays a $0.35 quarterly dividend (0.6% yield, DPR 33%).
• Insider and institutional activity: insiders sold about 48,951 shares (~$10.6M) in the last 90 days (including the CEO), while institutional ownership is extremely high at 99.72% with several large funds materially increasing stakes.

Regal Rexnord Corporation (NYSE:RRX - Get Free Report) shares reached a new 52-week high during trading on Wednesday . The company traded as high as $232.67 and last traded at $231.6080, with a volume of 46521 shares. The stock had previously closed at $222.02.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on RRX. Wall Street Zen cut Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, April 28th. Robert W. Baird set a $253.00 price objective on shares of Regal Rexnord in a research note on Friday, February 6th. KeyCorp raised their target price on shares of Regal Rexnord from $200.00 to $255.00 and gave the company an "overweight" rating in a report on Tuesday, February 10th. The Goldman Sachs Group lifted their target price on shares of Regal Rexnord from $170.00 to $230.00 and gave the stock a "buy" rating in a research report on Monday, February 9th. Finally, Citigroup increased their price target on shares of Regal Rexnord from $230.00 to $240.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Regal Rexnord has an average rating of "Moderate Buy" and an average target price of $229.75.

Regal Rexnord Price Performance

The company has a market capitalization of $15.44 billion, a price-to-earnings ratio of 55.23, a P/E/G ratio of 1.98 and a beta of 1.15. The company has a fifty day simple moving average of $200.47 and a two-hundred day simple moving average of $171.53. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.10 and a current ratio of 2.15.

Regal Rexnord (NYSE:RRX - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The company reported $2.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.04. The business had revenue of $1.52 billion for the quarter, compared to analysts' expectations of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The business's revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.34 earnings per share. As a group, research analysts anticipate that Regal Rexnord Corporation will post 10.73 earnings per share for the current year.

Regal Rexnord Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord's dividend payout ratio (DPR) is presently 33.33%.

Insider Buying and Selling at Regal Rexnord

In other Regal Rexnord news, CEO Louis V. Pinkham sold 36,728 shares of Regal Rexnord stock in a transaction dated Monday, February 9th. The stock was 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 in the company, valued at $17,960,790.24. The trade was a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, 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 transaction of $487,981.26. Following the transaction, the executive vice president owned 13,219 shares in the company, valued at approximately $2,851,734.87. The trade was a 14.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 48,951 shares of company stock worth $10,576,689 in the last 90 days. 0.63% of the stock is owned by company insiders.

Hedge Funds Weigh In On Regal Rexnord

Large investors have recently bought and sold shares of the stock. Victory Capital Management Inc. grew its stake in shares of Regal Rexnord by 138.4% during the 3rd quarter. Victory Capital Management Inc. now owns 3,968,101 shares of the company's stock valued at $566,981,000 after buying an additional 2,303,373 shares during the period. Bank of New York Mellon Corp raised 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 worth $343,859,000 after buying an additional 984,185 shares during the period. Bessemer Group Inc. boosted its holdings in Regal Rexnord by 4,155.4% in the first quarter. Bessemer Group Inc. now owns 916,054 shares of the company's stock valued at $171,541,000 after acquiring an additional 894,527 shares during the last quarter. Norges Bank purchased a new stake in Regal Rexnord during the fourth quarter valued at about $121,301,000. Finally, Viking Global Investors LP grew its position 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 valued at $497,231,000 after acquiring an additional 701,145 shares during the period. Hedge funds and other 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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