Wall Street Zen Upgrades Regal Rexnord (NYSE:RRX) to Strong-Buy

Key Points

• Wall Street Zen upgraded Regal Rexnord (NYSE: RRX) from Buy to Strong-Buy, adding to a broadly positive analyst tone around the stock.
• Other firms have also raised their outlooks and price targets, with several now in the $240–$265 range; the overall consensus remains Moderate Buy with an average target price of $237.80.
• Regal Rexnord reported better-than-expected quarterly results, including EPS of $2.17 versus $2.11 expected and revenue of $1.48 billion versus $1.43 billion expected, while shares were trading around $218.39.

Regal Rexnord (NYSE:RRX - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report issued on Saturday.

A number of other equities analysts have also recently weighed in on RRX. Citigroup raised their price objective on Regal Rexnord from $230.00 to $240.00 and gave the company a "buy" rating in a report on Monday, April 13th. JPMorgan Chase & Co. increased their price target on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an "overweight" rating in a research report on Tuesday, May 26th. UBS Group set a $260.00 price target on shares of Regal Rexnord in a research note on Monday, June 15th. KeyCorp boosted their price objective on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Finally, Barclays upped their price objective on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a research note on Monday, March 23rd. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $237.80.

Regal Rexnord Stock Down 0.0%

Shares of NYSE:RRX opened at $218.39 on Friday. The firm has a market capitalization of $14.54 billion, a PE ratio of 50.79, a price-to-earnings-growth ratio of 2.05 and a beta of 1.08. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17. Regal Rexnord has a 52-week low of $127.96 and a 52-week high of $247.80. The firm has a fifty day moving average of $212.33 and a 200 day moving average of $192.54.

Regal Rexnord (NYSE:RRX - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $2.17 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.06. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The business had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter last year, the business posted $2.15 earnings per share. The company's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, research analysts anticipate that Regal Rexnord will post 10.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Robert Rehard sold 6,499 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the completion of the sale, the chief financial officer owned 27,965 shares of the company's stock, valued at approximately $5,593,000. This represents a 18.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Robin A. Walker-Lee sold 1,297 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $213.85, for a total transaction of $277,363.45. Following the completion of the transaction, the director owned 5,503 shares in the company, valued at $1,176,816.55. This represents a 19.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,305 shares of company stock worth $6,341,869 in the last ninety days. 0.63% of the stock is owned by insiders.

Institutional Investors Weigh In On Regal Rexnord

Several institutional investors have recently added to or reduced their stakes in RRX. AQR Capital Management LLC increased its position in shares of Regal Rexnord by 208.1% in the first quarter. AQR Capital Management LLC now owns 17,747 shares of the company's stock valued at $2,011,000 after acquiring an additional 11,987 shares during the period. Jones Financial Companies Lllp boosted its holdings in shares of Regal Rexnord by 91.6% during the first quarter. Jones Financial Companies Lllp now owns 617 shares of the company's stock worth $70,000 after purchasing an additional 295 shares during the period. Geneos Wealth Management Inc. grew its stake in shares of Regal Rexnord by 135.1% in the first 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 last quarter. Cetera Investment Advisers grew its stake in shares of Regal Rexnord by 6.7% in the second quarter. Cetera Investment Advisers now owns 3,116 shares of the company's stock worth $452,000 after purchasing an additional 196 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Regal Rexnord during the 2nd quarter valued at about $4,759,000. Hedge funds and other institutional investors own 99.72% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.