Regal Rexnord (NYSE:RRX) Shares Gap Up Following Better-Than-Expected Earnings

Regal Rexnord Co. (NYSE:RRX - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $110.28, but opened at $128.67. Regal Rexnord shares last traded at $126.49, with a volume of 143,497 shares traded.

The company reported $2.15 earnings per share for the quarter, topping the consensus estimate of $1.82 by $0.33. Regal Rexnord had a return on equity of 9.57% and a net margin of 3.25%. The firm had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the previous year, the business earned $2.00 earnings per share. The company's revenue was down 8.4% on a year-over-year basis.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 14th. Stockholders of record on Monday, June 30th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Monday, June 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.04%. Regal Rexnord's dividend payout ratio is presently 47.46%.

Wall Street Analyst Weigh In

A number of research firms have commented on RRX. Robert W. Baird lifted their target price on shares of Regal Rexnord from $167.00 to $172.00 and gave the stock an "outperform" rating in a research report on Wednesday. Oppenheimer cut their price objective on Regal Rexnord from $210.00 to $190.00 and set an "outperform" rating for the company in a report on Friday, February 7th. The Goldman Sachs Group lowered their target price on Regal Rexnord from $183.00 to $163.00 and set a "buy" rating on the stock in a report on Wednesday, April 2nd. Citigroup boosted their price target on Regal Rexnord from $110.00 to $145.00 and gave the company a "buy" rating in a research note on Thursday. Finally, KeyCorp lowered their price objective on shares of Regal Rexnord from $180.00 to $125.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 8th. Two analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $170.63.

Hedge Funds Weigh In On Regal Rexnord

Hedge funds have recently modified their holdings of the company. Skandinaviska Enskilda Banken AB publ increased its stake in Regal Rexnord by 472.4% in the 4th quarter. Skandinaviska Enskilda Banken AB publ now owns 166 shares of the company's stock worth $25,000 after buying an additional 137 shares in the last quarter. Bernard Wealth Management Corp. purchased a new stake in shares of Regal Rexnord during the fourth quarter worth about $30,000. Golden State Wealth Management LLC raised its stake in Regal Rexnord by 106.2% during the 1st quarter. Golden State Wealth Management LLC now owns 268 shares of the company's stock valued at $31,000 after purchasing an additional 138 shares during the period. Aster Capital Management DIFC Ltd purchased a new position in Regal Rexnord in the 4th quarter worth approximately $33,000. Finally, Tobam bought a new position in Regal Rexnord in the 4th quarter worth approximately $45,000. 99.72% of the stock is currently owned by institutional investors.

Regal Rexnord Stock Performance

The business's fifty day simple moving average is $111.89 and its 200-day simple moving average is $142.54. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.25 and a current ratio of 2.26. The firm has a market capitalization of $8.90 billion, a PE ratio of 45.51, a price-to-earnings-growth ratio of 1.37 and a beta of 1.11.

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.