Regal Rexnord (NYSE:RRX) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Regal Rexnord has been upgraded to a "Strong-Buy" rating by Wall Street Zen, signaling increased investor confidence in the stock.
• Multiple analysts have raised their price targets for Regal Rexnord, with the consensus price target now at $185.25.
• The company reported earnings per share of $2.48 for the last quarter, exceeding expectations, but revenue was down 3.3% compared to the previous year.

Wall Street Zen upgraded shares of Regal Rexnord (NYSE:RRX - Free Report) from a buy rating to a strong-buy rating in a research note published on Sunday.

Other equities research analysts also recently issued research reports about the stock. Citigroup reaffirmed a "buy" rating and issued a $165.00 price objective (up previously from $145.00) on shares of Regal Rexnord in a report on Tuesday, June 24th. Robert W. Baird boosted their price target on Regal Rexnord from $167.00 to $172.00 and gave the company an "outperform" rating in a research note on Wednesday, May 7th. The Goldman Sachs Group boosted their price target on Regal Rexnord from $173.00 to $195.00 and gave the company a "buy" rating in a research note on Tuesday, July 8th. 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. Finally, Barclays upped their price target on Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a report on Wednesday, July 9th. Eight equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $185.25.

Regal Rexnord Stock Down 2.5%

Shares of NYSE:RRX traded down $3.81 during midday trading on Friday, reaching $149.10. The company had a trading volume of 621,472 shares, compared to its average volume of 907,595. 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 stock's fifty day moving average price is $148.99 and its 200-day moving average price is $132.51. The stock has a market capitalization of $9.90 billion, a P/E ratio of 39.65, a PEG ratio of 1.54 and a beta of 1.18. Regal Rexnord has a one year low of $90.56 and a one year high of $185.28.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $2.48 EPS for the quarter, topping analysts' consensus estimates of $2.42 by $0.06. The firm had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.50 billion. Regal Rexnord had a net margin of 4.28% and a return on equity of 9.73%. The firm's revenue was down 3.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.29 earnings per share. 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 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, September 30th. Regal Rexnord's payout ratio is currently 37.23%.

Hedge Funds Weigh In On Regal Rexnord

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. boosted its position in shares of Regal Rexnord by 35.3% during the 2nd quarter. Geneos Wealth Management Inc. now owns 299 shares of the company's stock valued at $43,000 after purchasing an additional 78 shares in the last quarter. Kovitz Investment Group Partners LLC boosted its position in shares of Regal Rexnord by 3.8% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 2,382 shares of the company's stock valued at $370,000 after purchasing an additional 87 shares in the last quarter. Allworth Financial LP boosted its position in shares of Regal Rexnord by 85.7% during the 2nd quarter. Allworth Financial LP now owns 195 shares of the company's stock valued at $28,000 after purchasing an additional 90 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Regal Rexnord by 0.7% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 13,549 shares of the company's stock valued at $1,543,000 after purchasing an additional 100 shares in the last quarter. Finally, Louisiana State Employees Retirement System raised its stake in Regal Rexnord by 0.5% during the 2nd quarter. Louisiana State Employees Retirement System now owns 18,700 shares of the company's stock worth $2,711,000 after buying an additional 100 shares during the period. 99.72% of the stock is owned by institutional investors and hedge funds.

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.