Regal Rexnord (NYSE:RRX) Stock Price Down 4.5% - Should You Sell?

Key Points

• Shares dropped about 4.5% intraday to roughly $199.90 (the piece also notes a subsequent ~5.9% move) on sharply lower volume, signaling near‑term selling pressure.
• Analyst sentiment is positive: seven Buys and three Holds give a consensus "Moderate Buy" with an average price target of $229.75, and several firms recently raised targets (up to the $245–$253 range).
• Mixed fundamentals — modest beat on EPS but slim margins: Q4 EPS was $2.51 (beating estimates) while revenue slightly missed; the company pays a $0.35 quarterly dividend (0.7% yield), and insiders sold about $11.4M of stock last quarter.

Regal Rexnord Corporation (NYSE:RRX - Get Free Report)'s stock price fell 4.5% on Wednesday . The stock traded as low as $197.31 and last traded at $199.8980. 136,959 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 1,074,512 shares. The stock had previously closed at $209.35.

Wall Street Analyst Weigh In

Several research firms have weighed in on RRX. Robert W. Baird set a $253.00 price target on Regal Rexnord in a report on Friday, February 6th. Oppenheimer raised 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. Zacks Research raised Regal Rexnord from a "strong sell" rating to a "hold" rating in a report on Tuesday, December 30th. The Goldman Sachs Group raised their price objective on Regal Rexnord from $170.00 to $230.00 and gave the company a "buy" rating in a report on Monday, February 9th. Finally, Barclays raised their price objective on Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, March 23rd. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $229.75.

Regal Rexnord Stock Down 5.9%

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 stock has a 50 day simple moving average of $201.67 and a 200 day simple moving average of $165.60. The firm has a market capitalization of $13.12 billion, a PE ratio of 46.82, a PEG ratio of 1.95 and a beta of 1.11.

Regal Rexnord (NYSE:RRX - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $2.51 EPS for the quarter, topping analysts' consensus estimates 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 quarterly revenue was up 4.3% on a year-over-year basis. During the same period in the previous year, the firm earned $2.34 EPS. As a group, sell-side analysts forecast that Regal Rexnord Corporation will post 9.95 earnings per share for the current year.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 31st were paid 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 was Tuesday, March 31st. Regal Rexnord's payout ratio is 33.33%.

Insider Buying and Selling

In other Regal Rexnord news, Director Curtis W. Stoelting sold 4,500 shares of Regal Rexnord stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $180.00, for a total value of $810,000.00. Following the transaction, the director directly owned 15,617 shares of the company's stock, valued at $2,811,060. The trade was a 22.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Robert Rehard sold 7,704 shares of Regal Rexnord stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $216.72, for a total value of $1,669,610.88. Following the completion of the transaction, the chief financial officer directly owned 34,154 shares in the company, valued at $7,401,854.88. This trade represents a 18.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 53,451 shares of company stock valued at $11,386,689 over the last quarter. Company insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On Regal Rexnord

A number of large investors have recently made changes to their positions in the business. Rehmann Capital Advisory Group grew its position in shares of Regal Rexnord by 15.2% in the 4th quarter. Rehmann Capital Advisory Group now owns 2,318 shares of the company's stock worth $325,000 after buying an additional 306 shares during the last quarter. Kera Capital Partners Inc. bought a new stake in shares of Regal Rexnord in the 4th quarter worth approximately $180,000. Dean Capital Management grew its position in shares of Regal Rexnord by 3.2% in the 4th quarter. Dean Capital Management now owns 13,873 shares of the company's stock worth $1,947,000 after buying an additional 429 shares during the last quarter. 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 worth $267,426,000 after buying an additional 405,828 shares during the last quarter. Finally, First Citizens Bank & Trust Co. grew its position in shares of Regal Rexnord by 1.5% in the 4th quarter. First Citizens Bank & Trust Co. now owns 5,490 shares of the company's stock worth $770,000 after buying an additional 83 shares during the last quarter. 99.72% of the stock is currently owned by institutional investors.

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.

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.