Diamond Hill Capital Management Inc. Sells 433,878 Shares of Regal Rexnord Corporation $RRX

Diamond Hill Capital Management Inc. reduced its holdings in shares of Regal Rexnord Corporation (NYSE:RRX) by 14.4% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,584,884 shares of the company’s stock after selling 433,878 shares during the period. Regal Rexnord accounts for about 1.8% of Diamond Hill Capital Management Inc.’s investment portfolio, making the stock its 19th largest holding. Diamond Hill Capital Management Inc. owned about 3.89% of Regal Rexnord worth $370,776,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Norges Bank bought a new stake in Regal Rexnord in the second quarter worth $256,155,000. Nordea Investment Management AB bought a new position in Regal Rexnord in the 2nd quarter worth about $224,889,000. Viking Global Investors LP grew its position in Regal Rexnord by 25.7% during the 2nd quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock valued at $497,231,000 after purchasing an additional 701,145 shares during the last quarter. Invesco Ltd. increased its stake in Regal Rexnord by 36.6% during the 2nd quarter. Invesco Ltd. now owns 1,274,266 shares of the company’s stock valued at $184,718,000 after purchasing an additional 341,437 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in Regal Rexnord by 69.5% in the third quarter. Bank of New York Mellon Corp now owns 797,036 shares of the company’s stock worth $114,327,000 after buying an additional 326,723 shares during the last quarter. Institutional investors own 99.72% of the company’s stock.

Insider Activity at Regal Rexnord

In other news, CEO Louis V. Pinkham sold 35,935 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $146.20, for a total value of $5,253,697.00. Following the sale, the chief executive officer directly owned 103,262 shares in the company, valued at approximately $15,096,904.40. This represents a 25.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Curtis W. Stoelting sold 4,500 shares of the stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $180.00, for a total value of $810,000.00. Following the completion of the sale, the director owned 15,617 shares in the company, valued at approximately $2,811,060. The trade was a 22.37% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.82% of the stock is owned by company insiders.

Key Headlines Impacting Regal Rexnord

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Huge data‑center traction — management highlighted data‑center E‑Pod wins worth about $735M and said initial E‑Pod shipments are expected to start in early 2027, supporting longer‑term secular growth and a much larger backlog. PR Newswire: Q4 results & data center orders
• Positive Sentiment: Earnings beat and margin expansion — Q4 adjusted EPS of $2.51 topped expectations and adjusted gross margin improved ~50 bps year‑over‑year; adjusted EBITDA and net income were up, signaling improving profitability. Zacks: Q4 earnings surpass estimates
• Positive Sentiment: Analyst support — JPMorgan raised its price target from $190 to $230 and kept an overweight rating, providing near‑term upside and institutional validation for the growth story. Benzinga: JPMorgan raises PT
• Positive Sentiment: Dividend announced — the company declared a $0.35 dividend, which can attract income‑seeking investors and signals confidence in cash flow. Yahoo Finance: Dividend announced
• Neutral Sentiment: FY2026 guidance provided — management set EPS guidance of $10.20–$11.00, which roughly brackets consensus; guidance shows strong profitability expectations but the range is wider/lower than some sell‑side midpoints. Regal Rexnord press release / slide deck
• Negative Sentiment: Revenue slightly missed estimates — Q4 sales of ~$1.52B were a touch below consensus (~$1.54B), which tempered the topline narrative despite the EPS beat. MSN: Q4 revenue miss

Analyst Ratings Changes

Several analysts have commented on RRX shares. Oppenheimer increased their target price on Regal Rexnord from $180.00 to $225.00 and gave the company an “outperform” rating in a research note on Friday. Jefferies Financial Group cut Regal Rexnord from a “buy” rating to a “hold” rating and dropped their price objective for the company from $170.00 to $160.00 in a research report on Wednesday, December 10th. Barclays reissued an “overweight” rating and issued a $165.00 target price on shares of Regal Rexnord in a research report on Monday, November 3rd. JPMorgan Chase & Co. lifted their price target on shares of Regal Rexnord from $190.00 to $230.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Robert W. Baird set a $253.00 price objective on shares of Regal Rexnord in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $197.88.

Regal Rexnord Trading Up 5.9%

Shares of Regal Rexnord stock opened at $211.89 on Friday. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.97 and a current ratio of 2.15. The company has a fifty day moving average of $153.28 and a 200 day moving average of $147.38. The company has a market capitalization of $14.07 billion, a P/E ratio of 50.45, a P/E/G ratio of 1.96 and a beta of 1.13. Regal Rexnord Corporation has a fifty-two week low of $90.56 and a fifty-two week high of $213.19.

Regal Rexnord (NYSE:RRX) last released its earnings results on Wednesday, February 4th. The company reported $2.51 EPS for the quarter, topping the consensus estimate of $2.47 by $0.04. The firm had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. The company’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.34 earnings per share. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS. On average, sell-side analysts anticipate that Regal Rexnord Corporation will post 9.95 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 31st will be given a dividend of $0.35 per share. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is 33.33%.

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.