Regal Rexnord (NYSE:RRX) Upgraded by Wall Street Zen to "Strong-Buy" Rating

Key Points

• Wall Street Zen upgraded Regal Rexnord (NYSE:RRX) from a "buy" to a "strong-buy" rating in a note to investors.
• Several analysts raised targets and ratings—Oppenheimer to $225 (outperform), Barclays to $245 (overweight) and KeyCorp to $255 (overweight)—and MarketBeat shows a consensus of "Moderate Buy" with a $229.75 target price.
• Recent quarter: RRX posted $2.51 EPS (beating estimates) while revenue slightly missed; the stock trades near $205 with a $13.7B market cap and insiders have sold about 53,451 shares (~$11.4M) in the past three months.

Regal Rexnord (NYSE:RRX - Get Free Report) was upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Monday.

A number of other equities analysts also recently weighed in on the company. Oppenheimer boosted their target price on Regal Rexnord from $180.00 to $225.00 and gave the stock an "outperform" rating in a research note on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Regal Rexnord in a research report on Thursday, January 22nd. Barclays increased their price target on Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a research report on Monday, March 23rd. Zacks Research upgraded Regal Rexnord from a "strong sell" rating to a "hold" rating in a research note on Tuesday, December 30th. Finally, KeyCorp upped their price objective on Regal Rexnord from $200.00 to $255.00 and gave the company an "overweight" rating in a research note on Tuesday, February 10th. Seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Regal Rexnord has a consensus rating of "Moderate Buy" and a consensus target price of $229.75.

Regal Rexnord Stock Performance

Shares of Regal Rexnord stock opened at $205.37 on Monday. The company has a market cap of $13.67 billion, a PE ratio of 48.90, a price-to-earnings-growth ratio of 1.91 and a beta of 1.11. Regal Rexnord has a 52 week low of $95.05 and a 52 week high of $229.30. The business has a 50 day moving average price of $201.74 and a 200-day moving average price of $166.75. The company has a quick ratio of 1.10, a current ratio of 2.15 and a debt-to-equity ratio of 0.70.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported $2.51 EPS for the quarter, topping the consensus estimate of $2.47 by $0.04. The firm had revenue of $1.52 billion during the quarter, compared to the consensus estimate of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.The company's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.34 earnings per share. Equities analysts anticipate that Regal Rexnord will post 9.95 earnings per share for the current fiscal year.

Insider Activity at Regal Rexnord

In other Regal Rexnord news, CFO Robert Rehard sold 7,704 shares of the business's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $216.72, for a total value of $1,669,610.88. Following the transaction, the chief financial officer directly owned 34,154 shares in the company, valued at $7,401,854.88. The trade was a 18.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Cheryl Lewis sold 2,262 shares of the business's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $215.73, for a total transaction of $487,981.26. Following the completion of the transaction, the executive vice president owned 13,219 shares in the company, valued at approximately $2,851,734.87. The trade was a 14.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 53,451 shares of company stock valued at $11,386,689 in the last three months. Insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AIA Group Ltd bought a new position in Regal Rexnord during the third quarter worth about $1,477,000. Oppenheimer Asset Management Inc. boosted its position in Regal Rexnord by 475.2% during the third quarter. Oppenheimer Asset Management Inc. now owns 21,991 shares of the company's stock worth $3,154,000 after purchasing an additional 18,168 shares during the period. American Century Companies Inc. bought a new position in Regal Rexnord during the third quarter worth about $47,778,000. Nordea Investment Management AB boosted its position in Regal Rexnord by 30.7% during the third quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock worth $289,083,000 after purchasing an additional 476,802 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Regal Rexnord by 97.0% during the third quarter. JPMorgan Chase & Co. now owns 260,853 shares of the company's stock worth $37,419,000 after purchasing an additional 128,468 shares during the period. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

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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