Regal Rexnord (NYSE:RRX) Shares Gap Up Following Strong Earnings

Regal Rexnord Co. (NYSE:RRX - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. 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 trading hands.

The company reported $2.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.82 by $0.33. The business had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.38 billion. Regal Rexnord had a net margin of 3.25% and a return on equity of 9.57%. The business's revenue for the quarter was down 8.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.00 EPS.

Regal Rexnord Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 14th. Stockholders of record on Monday, June 30th will be given a $0.35 dividend. The ex-dividend date 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 (DPR) is currently 39.89%.

Analysts Set New Price Targets

Several analysts have issued reports on RRX shares. StockNews.com cut shares of Regal Rexnord from a "buy" rating to a "hold" rating in a research note on Wednesday, April 16th. Barclays cut their price objective on Regal Rexnord from $160.00 to $155.00 and set an "overweight" rating for the company in a report on Wednesday, March 26th. KeyCorp dropped their target price on shares of Regal Rexnord from $180.00 to $125.00 and set an "overweight" rating for the company in a research report on Tuesday, April 8th. The Goldman Sachs Group cut their target price on shares of Regal Rexnord from $183.00 to $163.00 and set a "buy" rating for the company in a research report on Wednesday, April 2nd. Finally, Citigroup lifted their price target on Regal Rexnord from $110.00 to $145.00 and gave the stock a "buy" rating in a research note on Thursday. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $170.63.

Hedge Funds Weigh In On Regal Rexnord

Large investors have recently bought and sold shares of the stock. Bank Julius Baer & Co. Ltd Zurich increased its stake in shares of Regal Rexnord by 7.4% in the fourth quarter. Bank Julius Baer & Co. Ltd Zurich now owns 1,111 shares of the company's stock worth $190,000 after buying an additional 77 shares during the period. Moors & Cabot Inc. raised its stake in shares of Regal Rexnord by 4.1% during the fourth quarter. Moors & Cabot Inc. now owns 2,139 shares of the company's stock valued at $332,000 after acquiring an additional 85 shares during the last quarter. Kovitz Investment Group Partners LLC raised its stake in shares of Regal Rexnord by 3.8% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 2,382 shares of the company's stock valued at $370,000 after acquiring an additional 87 shares during the last quarter. Advisory Research Inc. boosted its holdings in shares of Regal Rexnord by 1.5% during the fourth quarter. Advisory Research Inc. now owns 6,710 shares of the company's stock worth $1,041,000 after purchasing an additional 98 shares during the period. Finally, Oregon Public Employees Retirement Fund grew its stake in shares of Regal Rexnord by 0.7% in the first quarter. Oregon Public Employees Retirement Fund now owns 13,549 shares of the company's stock worth $1,543,000 after purchasing an additional 100 shares during the last quarter. 99.72% of the stock is owned by hedge funds and other institutional investors.

Regal Rexnord Stock Performance

The business has a fifty day moving average of $111.89 and a 200-day moving average of $142.36. The company has a market cap of $8.90 billion, a PE ratio of 45.51, a P/E/G ratio of 1.37 and a beta of 1.11. The company has a current ratio of 2.26, a quick ratio of 1.25 and a debt-to-equity ratio of 0.87.

About Regal Rexnord

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.