Regal Rexnord (NYSE:RRX) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• Regal Rexnord has been upgraded from a "buy" rating to a "strong-buy" by analysts at Wall Street Zen, signaling increased confidence in the stock's performance.
• Analysts from various firms have raised their price targets for Regal Rexnord, with Goldman Sachs increasing theirs from $173 to $195 and Barclays from $160 to $165.
• Despite a recent trading decline of 4.3%, Regal Rexnord reported a quarterly EPS of $2.48, surpassing consensus estimates and reflecting a year-over-year revenue drop of 3.3%.

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

RRX has been the subject of several other research reports. Barclays lifted their price target on Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 9th. The Goldman Sachs Group lifted their price target on Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a research report on Tuesday, July 8th. Citigroup restated a "buy" rating and set a $165.00 target price (up previously from $145.00) on shares of Regal Rexnord in a research report on Tuesday, June 24th. Finally, KeyCorp set a $180.00 target price on Regal Rexnord and gave the company an "overweight" rating in a research report on Thursday, June 26th. Eight analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $185.25.

Regal Rexnord Trading Down 4.3%

RRX opened at $138.68 on Friday. The firm has a market cap of $9.20 billion, a P/E ratio of 36.88, a P/E/G ratio of 1.46 and a beta of 1.18. Regal Rexnord has a 12 month low of $90.56 and a 12 month high of $185.28. The company has a current ratio of 2.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. The stock has a 50-day moving average of $148.38 and a 200 day moving average of $133.08.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $2.48 EPS for the quarter, topping the consensus estimate of $2.42 by $0.06. The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.50 billion. Regal Rexnord had a return on equity of 9.73% and a net margin of 4.28%.The firm's revenue was down 3.3% on a year-over-year basis. During the same quarter last year, the business posted $2.29 earnings per share. Regal Rexnord has set its FY 2025 guidance at 9.700-10.300 EPS. As a group, research analysts forecast that Regal Rexnord will post 9.95 EPS for the current year.

Institutional Trading of Regal Rexnord

A number of large investors have recently modified their holdings of the company. Viking Global Investors LP boosted its holdings in shares of Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock valued at $497,231,000 after purchasing an additional 701,145 shares during the period. Diamond Hill Capital Management Inc. boosted its holdings in shares of Regal Rexnord by 6.0% in the first quarter. Diamond Hill Capital Management Inc. now owns 3,083,622 shares of the company's stock valued at $351,070,000 after purchasing an additional 175,273 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in shares of Regal Rexnord by 4.2% in the first quarter. Massachusetts Financial Services Co. MA now owns 2,882,369 shares of the company's stock valued at $328,158,000 after purchasing an additional 115,564 shares during the period. Victory Capital Management Inc. boosted its holdings in shares of Regal Rexnord by 11.9% in the first quarter. Victory Capital Management Inc. now owns 2,436,848 shares of the company's stock valued at $277,435,000 after purchasing an additional 259,885 shares during the period. Finally, Norges Bank purchased a new stake in shares of Regal Rexnord in the second quarter valued at approximately $256,155,000. Hedge funds and other institutional investors own 99.72% of the company's stock.

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.

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