Wall Street Zen Downgrades RBC Bearings (NYSE:RBC) to Hold

Key Points

• Wall Street Zen downgraded RBC Bearings to “Hold” from “Buy,” while the broader analyst consensus remains “Moderate Buy,” with seven Buy ratings and two Holds and an average price target of $623.
• RBC Bearings reported stronger-than-expected quarterly results, posting $3.88 in EPS versus a $3.42 estimate and $519.5 million in revenue, up 19.2% year over year.
• Insiders sold 1,425 shares worth approximately $885,400 during the past quarter, including sales by a vice president and a director.

RBC Bearings (NYSE:RBC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other equities analysts have also weighed in on the stock. Royal Bank Of Canada set a $645.00 target price on shares of RBC Bearings in a research note on Monday, August 3rd. Morgan Stanley raised their price target on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 19th. Raymond James Financial raised shares of RBC Bearings from a "market perform" rating to an "outperform" rating and set a $645.00 target price for the company in a research report on Monday, August 3rd. Truist Financial lifted their price target on shares of RBC Bearings from $615.00 to $646.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Finally, Zacks Research cut shares of RBC Bearings from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Seven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, RBC Bearings currently has an average rating of "Moderate Buy" and a consensus price target of $623.00.

RBC Bearings Trading Up 0.1%

RBC opened at $505.18 on Friday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.98 and a current ratio of 2.53. RBC Bearings has a twelve month low of $364.50 and a twelve month high of $667.69. The firm's fifty day moving average is $587.47 and its two-hundred day moving average is $575.72. The firm has a market cap of $15.99 billion, a PE ratio of 49.92, a price-to-earnings-growth ratio of 2.73 and a beta of 1.40.

RBC Bearings (NYSE:RBC - Get Free Report) last posted its earnings results on Friday, July 31st. The industrial products company reported $3.88 earnings per share for the quarter, topping the consensus estimate of $3.42 by $0.46. The firm had revenue of $519.50 million for the quarter, compared to analyst estimates of $508.92 million. RBC Bearings had a return on equity of 12.06% and a net margin of 16.40%.The company's revenue for the quarter was up 19.2% on a year-over-year basis. During the same period in the previous year, the company posted $2.84 earnings per share. Equities research analysts anticipate that RBC Bearings will post 14.12 EPS for the current year.

Insider Activity

In related news, VP John J. Feeney sold 225 shares of the business's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $657.94, for a total value of $148,036.50. Following the completion of the sale, the vice president directly owned 2,378 shares in the company, valued at $1,564,581.32. The trade was a 8.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Dolores J. Ennico sold 600 shares of the company's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $636.11, for a total value of $381,666.00. Following the completion of the transaction, the director directly owned 7,254 shares in the company, valued at approximately $4,614,341.94. This represents a 7.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,425 shares of company stock valued at $885,400. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On RBC Bearings

Hedge funds and other institutional investors have recently modified their holdings of the company. Western Wealth Management LLC bought a new stake in shares of RBC Bearings in the first quarter valued at about $27,000. SBI Securities Co. Ltd. increased its position in RBC Bearings by 106.5% during the fourth quarter. SBI Securities Co. Ltd. now owns 64 shares of the industrial products company's stock worth $29,000 after acquiring an additional 33 shares during the period. Millstone Evans Group LLC increased its position in RBC Bearings by 45.3% during the first quarter. Millstone Evans Group LLC now owns 77 shares of the industrial products company's stock worth $42,000 after acquiring an additional 24 shares during the period. Advisors Asset Management Inc. acquired a new stake in RBC Bearings in the 1st quarter worth about $26,000. Finally, Larson Financial Group LLC raised its stake in RBC Bearings by 148.5% in the 3rd quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company's stock worth $32,000 after purchasing an additional 49 shares in the last quarter.

About RBC Bearings

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.

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