Regal Rexnord (NYSE:RRX) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Regal Rexnord from a "strong-buy" to a "buy" rating, signaling a shift in analyst sentiment towards the stock.
• Despite the downgrade, Goldman Sachs raised its price target for Regal Rexnord from $173.00 to $195.00, reflecting continued confidence in the company's prospects.
• Regal Rexnord's recent quarterly earnings exceeded expectations, reporting $2.48 earnings per share, while its revenue was $1.50 billion, matching analyst estimates.

Wall Street Zen cut shares of Regal Rexnord (NYSE:RRX - Free Report) from a strong-buy rating to a buy rating in a report published on Friday.

Other equities research analysts also recently issued research reports about the company. KeyCorp set a $180.00 target price on Regal Rexnord and gave the stock an "overweight" rating in a research report on Thursday, June 26th. The Goldman Sachs Group boosted their price target on Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a research note on Tuesday, July 8th. Citigroup reiterated a "buy" rating and issued a $165.00 price target (up previously from $145.00) on shares of Regal Rexnord in a research note on Tuesday, June 24th. Finally, Barclays boosted their price target on Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 9th. Eight analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $185.25.

Regal Rexnord Trading Down 1.2%

RRX stock traded down $1.80 during trading on Friday, reaching $143.77. 624,139 shares of the stock traded hands, compared to its average volume of 727,780. The business's 50 day moving average price is $149.08 and its 200-day moving average price is $132.84. Regal Rexnord has a 52-week low of $90.56 and a 52-week high of $185.28. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.00 and a quick ratio of 0.93. The firm has a market capitalization of $9.54 billion, a PE ratio of 38.24, a P/E/G ratio of 1.47 and a beta of 1.18.

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

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Tuesday, September 30th. This represents a $1.40 annualized dividend and a yield of 1.0%. Regal Rexnord's dividend payout ratio is presently 37.23%.

Institutional Trading of Regal Rexnord

Several institutional investors and hedge funds have recently bought and sold shares of the company. Cetera Investment Advisers grew its holdings in shares of Regal Rexnord by 7.1% during the fourth quarter. Cetera Investment Advisers now owns 2,818 shares of the company's stock valued at $437,000 after purchasing an additional 187 shares during the last quarter. D. E. Shaw & Co. Inc. grew its holdings in shares of Regal Rexnord by 1,869.3% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 97,912 shares of the company's stock valued at $15,189,000 after purchasing an additional 92,940 shares during the last quarter. Hudson Bay Capital Management LP bought a new position in shares of Regal Rexnord during the fourth quarter valued at approximately $7,601,000. Jefferies Financial Group Inc. bought a new position in shares of Regal Rexnord during the fourth quarter valued at approximately $1,427,000. Finally, Lighthouse Investment Partners LLC grew its holdings in shares of Regal Rexnord by 1,089.4% during the fourth quarter. Lighthouse Investment Partners LLC now owns 39,000 shares of the company's stock valued at $6,050,000 after purchasing an additional 35,721 shares during the last quarter. Institutional investors and hedge funds own 99.72% of the company's stock.

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.