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

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 Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday.

RRX has been the topic of a number of other reports. The Goldman Sachs Group raised their target price on Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. KeyCorp set a $180.00 target price on Regal Rexnord and gave the stock an "overweight" rating in a report on Thursday, June 26th. Citigroup reaffirmed a "buy" rating and issued a $165.00 target price (up from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. Finally, Barclays raised their target price on Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a report on Wednesday, July 9th. Nine equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Regal Rexnord has a consensus rating of "Buy" and an average target price of $183.67.

Regal Rexnord Stock Performance

Shares of RRX stock traded up $4.21 on Friday, reaching $144.54. The stock had a trading volume of 627,636 shares, compared to its average volume of 683,423. The stock has a market cap of $9.59 billion, a P/E ratio of 38.44, a price-to-earnings-growth ratio of 1.41 and a beta of 1.18. Regal Rexnord has a 1 year low of $90.56 and a 1 year high of $185.28. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 2.00. The company has a 50 day simple moving average of $147.69 and a 200 day simple moving average of $133.42.

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

Institutional Investors Weigh In On Regal Rexnord

A number of institutional investors and hedge funds have recently bought and sold shares of RRX. Geneos Wealth Management Inc. raised its stake in shares of Regal Rexnord by 35.3% during the second quarter. Geneos Wealth Management Inc. now owns 299 shares of the company's stock valued at $43,000 after acquiring an additional 78 shares in the last quarter. Allworth Financial LP raised its stake in shares of Regal Rexnord by 85.7% during the second quarter. Allworth Financial LP now owns 195 shares of the company's stock valued at $28,000 after acquiring an additional 90 shares in the last quarter. Oregon Public Employees Retirement Fund raised its stake in shares of Regal Rexnord by 0.7% during the first quarter. Oregon Public Employees Retirement Fund now owns 13,549 shares of the company's stock valued at $1,543,000 after acquiring an additional 100 shares in the last quarter. Louisiana State Employees Retirement System raised its stake in shares of Regal Rexnord by 0.5% during the second quarter. Louisiana State Employees Retirement System now owns 18,700 shares of the company's stock valued at $2,711,000 after acquiring an additional 100 shares in the last quarter. Finally, Cetera Investment Advisers raised its stake in shares of Regal Rexnord by 3.6% during the first quarter. Cetera Investment Advisers now owns 2,920 shares of the company's stock valued at $332,000 after acquiring an additional 102 shares in the last quarter. 99.72% of the stock is owned by institutional investors.

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.