Regal Rexnord (NYSE:RRX) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan Chase & Co. raised its price target on Regal Rexnord from $230 to $240 and kept an overweight rating, implying about 15.65% upside from the current share price.
• The company also received mixed but generally positive analyst coverage overall, with six Buy ratings and three Hold ratings; MarketBeat’s average target price is $232.25.
• Regal Rexnord reported better-than-expected first-quarter earnings, posting EPS of $2.17 versus the $2.11 estimate, while revenue of $1.48 billion also topped expectations.

Regal Rexnord (NYSE:RRX - Get Free Report) had its price target boosted by analysts at JPMorgan Chase & Co. from $230.00 to $240.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price points to a potential upside of 15.65% from the stock's current price.

Other analysts have also recently issued research reports about the company. Wall Street Zen cut Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, April 28th. Weiss Ratings restated a "hold (c)" rating on shares of Regal Rexnord in a research note on Tuesday, April 21st. The Goldman Sachs Group increased their price objective on shares of Regal Rexnord from $170.00 to $230.00 and gave the company a "buy" rating in a report on Monday, February 9th. Barclays lifted their price objective on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a research report on Monday, March 23rd. Finally, Oppenheimer lifted their price objective on shares of Regal Rexnord from $180.00 to $225.00 and gave the company an "outperform" rating in a research report on Friday, February 6th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $232.25.

Regal Rexnord Price Performance

Shares of RRX stock traded up $6.74 on Tuesday, hitting $207.52. 209,183 shares of the stock traded hands, compared to its average volume of 1,119,522. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. Regal Rexnord has a 52 week low of $127.96 and a 52 week high of $236.35. The firm has a 50 day simple moving average of $199.06 and a two-hundred day simple moving average of $177.44. The firm has a market cap of $13.81 billion, a price-to-earnings ratio of 48.26, a PEG ratio of 1.89 and a beta of 1.15.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $2.17 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.06. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. Regal Rexnord's quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.15 EPS. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS. As a group, equities research analysts predict that Regal Rexnord will post 10.63 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.68, for a total transaction of $4,764,705.12. Following the sale, the chief executive officer owned 56,749 shares in the company, valued at $12,012,628.32. This trade represents a 28.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of Regal Rexnord stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the sale, the director owned 5,503 shares in the company, valued at approximately $1,176,816.55. The trade was a 19.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 24,774 shares of company stock worth $5,257,933 over the last quarter. Insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On Regal Rexnord

A number of hedge funds have recently bought and sold shares of RRX. AQR Capital Management LLC raised its stake in Regal Rexnord by 208.1% during the first quarter. AQR Capital Management LLC now owns 17,747 shares of the company's stock valued at $2,011,000 after purchasing an additional 11,987 shares in the last quarter. Jones Financial Companies Lllp raised its stake in Regal Rexnord by 91.6% during the first quarter. Jones Financial Companies Lllp now owns 617 shares of the company's stock valued at $70,000 after purchasing an additional 295 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in Regal Rexnord by 135.1% during the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock valued at $25,000 after purchasing an additional 127 shares in the last quarter. Cetera Investment Advisers raised its stake in Regal Rexnord by 6.7% during the second quarter. Cetera Investment Advisers now owns 3,116 shares of the company's stock valued at $452,000 after purchasing an additional 196 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Regal Rexnord during the second quarter valued at $4,759,000. 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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