Regal Beloit (NYSE:RBC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “Over the past three months, Regal Beloit’s shares have outperformed the industry. The company’s adjusted earnings in second-quarter 2018 came in at $1.60 per share, 24% higher than the year-ago tally. Also, top-line results improved 5.7% year over year on an organic basis. The company expects that solid segmental performance and acquisition benefits will continue to drive its top line in the quarters ahead. On the other hand, stronger volumes, improved productivity, incremental pricing and ongoing simplification efforts will likely boost the company’s profitability in the quarters ahead. However, rising cost of sales remains a major cause of concern for Regal Beloit. The company is currently facing price inflation on both aluminum and steel on account of newly imposed tariffs. Also, headwinds like high customer concentration risks and cyclical nature of business might dent near-term results of the company.”

Other equities research analysts also recently issued research reports about the company. BMO Capital Markets increased their target price on Regal Beloit from $89.00 to $92.00 and gave the stock a “market perform” rating in a research report on Wednesday. Wolfe Research assumed coverage on Regal Beloit in a research report on Wednesday, June 27th. They set an “outperform” rating and a $97.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $88.60.

NYSE:RBC opened at $80.60 on Thursday. The firm has a market cap of $3.61 billion, a price-to-earnings ratio of 16.55, a P/E/G ratio of 1.39 and a beta of 1.51. Regal Beloit has a 1 year low of $67.84 and a 1 year high of $86.65. The company has a current ratio of 2.24, a quick ratio of 1.27 and a debt-to-equity ratio of 0.53.

Regal Beloit (NYSE:RBC) last posted its earnings results on Monday, August 6th. The industrial products company reported $1.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.59 by $0.01. The firm had revenue of $959.70 million for the quarter, compared to the consensus estimate of $953.65 million. Regal Beloit had a return on equity of 10.30% and a net margin of 6.77%. The business’s quarterly revenue was up 10.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.29 earnings per share. analysts predict that Regal Beloit will post 5.92 earnings per share for the current fiscal year.

Several large investors have recently bought and sold shares of the business. World Asset Management Inc purchased a new stake in shares of Regal Beloit in the second quarter worth $205,000. Verity Asset Management Inc. purchased a new stake in shares of Regal Beloit in the first quarter worth $209,000. Robeco Institutional Asset Management B.V. purchased a new stake in shares of Regal Beloit in the second quarter worth $216,000. Canandaigua National Bank & Trust Co. purchased a new stake in shares of Regal Beloit in the first quarter worth $280,000. Finally, Regentatlantic Capital LLC raised its position in shares of Regal Beloit by 22.9% in the second quarter. Regentatlantic Capital LLC now owns 3,705 shares of the industrial products company’s stock worth $303,000 after buying an additional 690 shares in the last quarter. Hedge funds and other institutional investors own 94.19% of the company’s stock.

Regal Beloit Company Profile

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.

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Analyst Recommendations for Regal Beloit (NYSE:RBC)

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