Wall Street Zen Downgrades Regal Rexnord (NYSE:RRX) to Buy

Key Points

• Wall Street Zen downgraded Regal Rexnord (NYSE:RRX) from a "strong-buy" to a "buy" rating in a research note to investors.
• Analyst sentiment remains largely positive overall — seven Buy vs. three Hold ratings, a MarketBeat average rating of Moderate Buy and an average price target of $229.75, with firms like KeyCorp and Barclays recently raising targets to $255 and $245 respectively.
• Significant insider selling occurred recently: the CEO and EVP were among insiders who sold a total of 53,451 shares (about $11.4 million) in the last 90 days, leaving insiders with roughly 0.63% ownership.

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

A number of other research firms also recently commented on RRX. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. KeyCorp increased their price target on Regal Rexnord from $200.00 to $255.00 and gave the stock an "overweight" rating in a research note on Tuesday, February 10th. Citigroup raised their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Robert W. Baird set a $253.00 price target on Regal Rexnord in a research report on Friday, February 6th. Finally, Barclays increased their price objective on shares of Regal Rexnord from $237.00 to $245.00 and gave the stock an "overweight" rating in a research report on Monday, March 23rd. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $229.75.

Regal Rexnord Stock Up 0.5%

Regal Rexnord stock opened at $213.22 on Tuesday. The stock's 50 day moving average price is $200.75 and its 200 day moving average price is $169.49. Regal Rexnord has a 1-year low of $102.23 and a 1-year high of $229.30. The company has a market cap of $14.19 billion, a PE ratio of 50.77, a price-to-earnings-growth ratio of 1.97 and a beta of 1.11. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.15 and a quick ratio of 1.10.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $2.51 EPS for the quarter, beating analysts' consensus estimates of $2.47 by $0.04. The company had revenue of $1.52 billion during the quarter, compared to the consensus estimate of $1.54 billion. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.Regal Rexnord's quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.34 earnings per share. On average, sell-side analysts predict that Regal Rexnord will post 10.76 EPS for the current fiscal year.

Insider Activity at Regal Rexnord

In other news, EVP Cheryl Lewis sold 2,262 shares of Regal Rexnord stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $215.73, for a total value of $487,981.26. Following the completion of the transaction, the executive vice president owned 13,219 shares in the company, valued at approximately $2,851,734.87. This trade represents a 14.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Louis V. Pinkham sold 36,728 shares of the firm's stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $215.52, for a total transaction of $7,915,618.56. Following the completion of the transaction, the chief executive officer owned 83,337 shares in the company, valued at approximately $17,960,790.24. The trade was a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 53,451 shares of company stock worth $11,386,689. Company insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Victory Capital Management Inc. boosted its position in shares of Regal Rexnord by 42.6% during the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company's stock worth $793,983,000 after buying an additional 1,690,264 shares during the period. Viking Global Investors LP boosted its stake in Regal Rexnord by 25.7% during the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock valued at $497,231,000 after buying an additional 701,145 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Regal Rexnord by 5.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company's stock valued at $355,031,000 after purchasing an additional 131,171 shares in the last quarter. Nordea Investment Management AB grew its position in Regal Rexnord by 30.7% in the third quarter. Nordea Investment Management AB now owns 2,028,936 shares of the company's stock worth $289,083,000 after buying an additional 476,802 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Regal Rexnord by 27.1% in the 4th quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after acquiring an additional 405,828 shares during the last quarter. 99.72% of the stock is owned by institutional investors and hedge funds.

About Regal Rexnord

Regal Rexnord Corporation NYSE: RRX is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company's operations are organized into multiple business segments that address distinct customer needs.

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