Short Interest in Regal Rexnord Co. (NYSE:RRX) Expands By 17.6%

Regal Rexnord Co. (NYSE:RRX - Get Free Report) was the recipient of a large growth in short interest in the month of May. As of May 15th, there was short interest totalling 2,000,000 shares, a growth of 17.6% from the April 30th total of 1,700,000 shares. Based on an average daily volume of 837,300 shares, the short-interest ratio is currently 2.4 days. Approximately 3.0% of the shares of the stock are sold short.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RRX. Wall Street Zen upgraded shares of Regal Rexnord from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. Citigroup lifted their price target on shares of Regal Rexnord from $110.00 to $145.00 and gave the company a "buy" rating in a report on Thursday, May 8th. The Goldman Sachs Group reduced their price target on shares of Regal Rexnord from $183.00 to $163.00 and set a "buy" rating on the stock in a report on Wednesday, April 2nd. Barclays lifted their price target on shares of Regal Rexnord from $155.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, May 12th. Finally, KeyCorp reduced their price target on shares of Regal Rexnord from $180.00 to $125.00 and set an "overweight" rating on the stock in a report on Tuesday, April 8th. One equities research analyst has rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $171.25.

Regal Rexnord Price Performance

Shares of NYSE:RRX traded up $1.63 on Friday, reaching $140.05. The company's stock had a trading volume of 624,112 shares, compared to its average volume of 578,703. Regal Rexnord has a 52-week low of $90.56 and a 52-week high of $185.28. The company has a market cap of $9.29 billion, a P/E ratio of 47.48, a PEG ratio of 1.37 and a beta of 1.16. The company has a 50-day simple moving average of $119.16 and a 200 day simple moving average of $137.48. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.25 and a current ratio of 2.26.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings data on Monday, May 5th. The company reported $2.15 EPS for the quarter, topping analysts' consensus estimates of $1.82 by $0.33. Regal Rexnord had a net margin of 3.25% and a return on equity of 9.57%. The business had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same period last year, the company posted $2.00 EPS. The business's revenue was down 8.4% on a year-over-year basis. As a group, equities research analysts anticipate that Regal Rexnord will post 9.95 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, July 14th. Investors of record on Monday, June 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Monday, June 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.00%. Regal Rexnord's dividend payout ratio is presently 39.89%.

Insider Activity

In other news, CEO Louis V. Pinkham sold 10,593 shares of the firm's stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $140.33, for a total transaction of $1,486,515.69. Following the sale, the chief executive officer now directly owns 175,954 shares in the company, valued at $24,691,624.82. This trade represents a 5.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.82% of the company's stock.

Hedge Funds Weigh In On Regal Rexnord

A number of large investors have recently made changes to their positions in RRX. Skandinaviska Enskilda Banken AB publ boosted its stake in shares of Regal Rexnord by 472.4% during the 4th quarter. Skandinaviska Enskilda Banken AB publ now owns 166 shares of the company's stock worth $25,000 after purchasing an additional 137 shares during the period. Geneos Wealth Management Inc. boosted its stake in shares of Regal Rexnord by 135.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after purchasing an additional 127 shares during the period. Bernard Wealth Management Corp. purchased a new position in shares of Regal Rexnord during the 4th quarter worth about $30,000. Golden State Wealth Management LLC boosted its stake in shares of Regal Rexnord by 106.2% during the 1st quarter. Golden State Wealth Management LLC now owns 268 shares of the company's stock worth $31,000 after purchasing an additional 138 shares during the period. Finally, Aster Capital Management DIFC Ltd purchased a new position in shares of Regal Rexnord during the 4th quarter worth about $33,000. 99.72% of the stock is owned by hedge funds and other 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.