Rexnord Corp. (RXN) Downgraded by Zacks Investment Research to Sell
According to Zacks, “We believe that positive impacts from Rexnord's solid business portfolio, rising demand from non-residential construction markets in the U.S. and potential benefits from its acquired Cambridge International assets and divested Rodney Hunt Fontaine (RHF) product line are more-than-offset by exposure to near-term headwinds. Forex woes, active industry rivalry, rising debt level and dependence on few large customers for a major portion of revenues are a prime concerning factor for the company. For fiscal 2017, weakness in the industrial end-markets is expected to partially offset the top-line growth. Core sales are predicted to decline 2% to improve 1%.”
Several other research analysts also recently weighed in on the company. Robert W. Baird downgraded Rexnord Corp. from an outperform rating to a neutral rating and set a $22.00 price target for the company. in a research note on Thursday, June 23rd. Barclays PLC upped their price target on Rexnord Corp. from $21.00 to $23.00 and gave the stock an equal weight rating in a research note on Monday, July 18th. Finally, Credit Suisse Group AG restated a buy rating on shares of Rexnord Corp. in a research note on Saturday, July 9th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $22.50.
Shares of Rexnord Corp. (NYSE:RXN) traded up 0.26% during midday trading on Monday, reaching $19.15. 49,644 shares of the company’s stock traded hands. Rexnord Corp. has a one year low of $14.04 and a one year high of $22.97. The stock’s 50-day moving average price is $20.76 and its 200 day moving average price is $20.91. The firm has a market capitalization of $1.97 billion, a PE ratio of 30.11 and a beta of 1.57.
Rexnord Corp. (NYSE:RXN) last posted its quarterly earnings results on Monday, August 1st. The company reported $0.35 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.30 by $0.05. Rexnord Corp. had a return on equity of 25.62% and a net margin of 3.43%. The business earned $472 million during the quarter, compared to the consensus estimate of $459.57 million. During the same period in the prior year, the company posted $0.30 EPS. The firm’s revenue for the quarter was down 2.7% compared to the same quarter last year. On average, equities research analysts expect that Rexnord Corp. will post $1.51 earnings per share for the current fiscal year.
In other Rexnord Corp. news, Director David C. Longren bought 2,000 shares of Rexnord Corp. stock in a transaction on Thursday, August 11th. The shares were acquired at an average price of $21.39 per share, for a total transaction of $42,780.00. Following the completion of the purchase, the director now directly owns 8,467 shares in the company, valued at approximately $181,109.13. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.40% of the stock is owned by company insiders.
Institutional investors have recently made changes to their positions in the stock. Nordea Investment Management AB raised its position in shares of Rexnord Corp. by 3.6% in the second quarter. Nordea Investment Management AB now owns 84,919 shares of the company’s stock valued at $1,667,000 after buying an additional 2,975 shares in the last quarter. Fox Run Management L.L.C. raised its position in shares of Rexnord Corp. by 2.3% in the second quarter. Fox Run Management L.L.C. now owns 17,900 shares of the company’s stock valued at $351,000 after buying an additional 400 shares in the last quarter. Quotient Investors LLC purchased a new position in shares of Rexnord Corp. during the second quarter valued at approximately $322,000. BNP Paribas Arbitrage SA raised its position in shares of Rexnord Corp. by 152.9% in the second quarter. BNP Paribas Arbitrage SA now owns 9,853 shares of the company’s stock valued at $193,000 after buying an additional 5,957 shares in the last quarter. Finally, Boothbay Fund Management LLC purchased a new position in shares of Rexnord Corp. during the first quarter valued at approximately $1,085,000. Hedge funds and other institutional investors own 97.01% of the company’s stock.
Rexnord Corp. Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems.
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