Regal Rexnord (NYSE:RRX) Shares Gap Down - Time to Sell?

Key Points

• Shares plunged ~10.9% after gapping down pre-market from $231.37 to an $211.17 open and trading around $205.52 on heavy volume, reflecting investor reaction despite the quarter.
• Regal beat Q1 estimates (adjusted EPS $2.17 vs. $2.11; revenue $1.48B vs. $1.43B) with rising orders and backlog, but FY‑2026 guidance (EPS $10.20–11.00) was slightly below consensus and management flagged margin headwinds in long‑cycle projects.
• Leadership and ownership moves add to the picture: Aamir Paul was named next CEO, insiders have recently sold shares, and analysts collectively rate the stock a "Moderate Buy" with a consensus price target near $231.

Regal Rexnord Corporation (NYSE:RRX - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $231.37, but opened at $211.17. Regal Rexnord shares last traded at $205.5220, with a volume of 537,988 shares.

Regal Rexnord News Summary

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Q1 results beat consensus — Q1 adjusted EPS $2.17 vs. $2.11 expected and revenue $1.48B vs. $1.43B; daily orders and backlog rose, with AMC orders up >34%, indicating demand strength across end markets. Q1 Results Release
• Neutral Sentiment: Management is engaging investors — Regal participated in an Oppenheimer fireside chat and investor meetings (May 8), making management accessible for questions on strategy and outlook. Conference Participation
• Neutral Sentiment: Leadership succession announced — Aamir Paul was named next CEO. Succession clarity reduces long‑term governance uncertainty but investors will monitor execution under new leadership. Q1 & Leadership Release
• Negative Sentiment: FY‑2026 guidance came in modestly below consensus — the company gave an EPS range of 10.20–11.00 versus a consensus ~10.69, which likely disappointed some investors and pressured the stock despite the quarter beat. Guidance & Q1 Release
• Negative Sentiment: Margin and mix signals — adjusted EBITDA was slightly below last year and management flagged headwinds in long‑cycle projects; investors may be concerned about near‑term margin pressure even as orders grow. Earnings Details

Wall Street Analyst Weigh In

A number of analysts have issued reports on RRX shares. Citigroup boosted their price objective on shares of Regal Rexnord from $230.00 to $240.00 and gave the company a "buy" rating in a report on Monday, April 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. Robert W. Baird set a $253.00 price target on Regal Rexnord in a research note on Friday, February 6th. Barclays increased their price target on Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a research report on Monday, March 23rd. Finally, Oppenheimer lifted their price objective on Regal Rexnord from $180.00 to $225.00 and gave the company an "outperform" rating in a report on Friday, February 6th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Regal Rexnord currently has an average rating of "Moderate Buy" and a consensus price target of $231.00.

Regal Rexnord Trading Down 10.9%

The company has a current ratio of 2.15, a quick ratio of 1.10 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $13.73 billion, a P/E ratio of 49.11, a P/E/G ratio of 2.07 and a beta of 1.15. The firm has a 50-day moving average of $200.72 and a two-hundred day moving average of $172.14.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $2.17 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.06. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same period in the prior year, the company earned $2.15 EPS. Regal Rexnord's revenue for the quarter was up 4.3% on a year-over-year basis. On average, analysts anticipate that Regal Rexnord Corporation will post 10.73 EPS for the current year.

Regal Rexnord Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord's dividend payout ratio is presently 33.33%.

Insiders Place Their Bets

In other Regal Rexnord news, CEO Louis V. Pinkham sold 36,728 shares of the company's 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 transaction, the chief executive officer owned 83,337 shares of the company's stock, valued at $17,960,790.24. This represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Cheryl Lewis sold 2,262 shares of the company's 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 transaction, the executive vice president directly owned 13,219 shares of the company's stock, valued at approximately $2,851,734.87. The trade was a 14.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 48,951 shares of company stock valued at $10,576,689 in the last 90 days. Corporate insiders own 0.63% of the company's stock.

Hedge Funds Weigh In On Regal Rexnord

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Victory Capital Management Inc. increased its holdings in Regal Rexnord by 42.6% in the 4th quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock worth $793,983,000 after purchasing an additional 1,690,264 shares in the last quarter. Viking Global Investors LP grew its position in shares of Regal Rexnord by 25.7% in the 2nd quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock valued at $497,231,000 after buying an additional 701,145 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Regal Rexnord by 5.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company's stock valued at $355,031,000 after buying an additional 131,171 shares during the last quarter. Nordea Investment Management AB grew its position in shares of Regal Rexnord by 30.7% in the 3rd quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock valued at $289,083,000 after buying an additional 476,802 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of Regal Rexnord by 27.1% in the 4th quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock valued at $267,426,000 after buying an additional 405,828 shares during the last quarter. Institutional investors and hedge funds own 99.72% of the company's stock.

Regal Rexnord Company Profile

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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