Zacks Investment Research Downgrades Regal Beloit (RBC) to Hold
Zacks Investment Research cut shares of Regal Beloit (NYSE:RBC) from a buy rating to a hold rating in a research report report published on Tuesday.
According to Zacks, “Regal Beloit’s long-term growth strategy involves organic growth through innovative products, broadening customer base, exploitation of new opportunities and tactical investments in emerging markets. Improved oil & gas and renewable energy end-market demand have been lending strong momentum to the company’s top line. Regal Beloit also continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. However, margin pressures, high concentration risks and adverse foreign currency translation remain headwinds. Regal Beloit's cyclical business is dependent on industrial and consumer spending and continues to be affected by macroeconomic industrial cycles both in domestic and international markets. Regal Beloit shares have also underperformed the industry in the last three months.”
Several other analysts have also recently issued reports on RBC. Morgan Stanley raised their target price on Regal Beloit from $82.00 to $87.00 and gave the stock an equal weight rating in a research note on Monday, October 2nd. BMO Capital Markets cut their target price on Regal Beloit from $88.00 to $85.00 and set a market perform rating on the stock in a research note on Tuesday, November 7th. Royal Bank of Canada reissued a buy rating on shares of Regal Beloit in a research note on Monday, November 6th. Robert W. Baird reissued a buy rating and issued a $88.00 target price on shares of Regal Beloit in a research note on Wednesday, October 4th. Finally, ValuEngine cut Regal Beloit from a buy rating to a hold rating in a research note on Wednesday, November 15th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the company. The company has an average rating of Hold and an average price target of $86.56.
Regal Beloit (NYSE:RBC) last posted its earnings results on Monday, November 6th. The industrial products company reported $1.37 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.38 by ($0.01). The business had revenue of $857.00 million during the quarter, compared to the consensus estimate of $837.19 million. Regal Beloit had a return on equity of 9.76% and a net margin of 6.28%. The firm’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.31 earnings per share. equities analysts anticipate that Regal Beloit will post 4.87 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 12th. Shareholders of record on Friday, December 29th will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Thursday, December 28th. This represents a $1.04 annualized dividend and a yield of 1.33%. Regal Beloit’s payout ratio is 22.61%.
A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. boosted its position in Regal Beloit by 1.2% during the 2nd quarter. BlackRock Inc. now owns 4,089,676 shares of the industrial products company’s stock valued at $333,515,000 after acquiring an additional 47,514 shares in the last quarter. Vanguard Group Inc. boosted its position in Regal Beloit by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 4,046,576 shares of the industrial products company’s stock valued at $329,998,000 after acquiring an additional 54,435 shares in the last quarter. State Street Corp boosted its position in Regal Beloit by 2.2% during the 2nd quarter. State Street Corp now owns 1,163,293 shares of the industrial products company’s stock valued at $94,869,000 after acquiring an additional 24,844 shares in the last quarter. Voya Investment Management LLC boosted its position in Regal Beloit by 1.8% during the 2nd quarter. Voya Investment Management LLC now owns 655,475 shares of the industrial products company’s stock valued at $53,455,000 after acquiring an additional 11,400 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its position in Regal Beloit by 2.2% during the 3rd quarter. Fisher Asset Management LLC now owns 642,326 shares of the industrial products company’s stock valued at $50,744,000 after acquiring an additional 13,942 shares in the last quarter. 93.81% of the stock is currently owned by institutional investors and hedge funds.
Regal Beloit Company Profile
Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque.
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