Short Interest in Regal Rexnord Corporation (NYSE:RRX) Decreases By 16.4%

Regal Rexnord Corporation (NYSE:RRX) was the target of a significant drop in short interest during the month of March. As of March 13th, there was short interest totaling 1,781,433 shares, a drop of 16.4% from the February 26th total of 2,130,409 shares. Based on an average daily trading volume, of 1,365,267 shares, the days-to-cover ratio is currently 1.3 days. Currently, 2.7% of the shares of the company are sold short.

Insider Transactions at Regal Rexnord

In other Regal Rexnord news, CEO Louis V. Pinkham sold 36,728 shares of the business’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $215.52, for a total value of $7,915,618.56. Following the sale, the chief executive officer directly owned 83,337 shares in the company, valued at $17,960,790.24. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Cheryl Lewis sold 2,262 shares of the company’s stock in a transaction on Monday, February 9th. The shares were sold at an average price of $215.73, for a total value of $487,981.26. Following the transaction, the executive vice president directly owned 13,219 shares in the company, valued at $2,851,734.87. This represents a 14.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 53,451 shares of company stock valued at $11,386,689. Corporate insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On Regal Rexnord

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RRX. Covestor Ltd increased its stake in Regal Rexnord by 81.6% in the 4th quarter. Covestor Ltd now owns 178 shares of the company’s stock worth $25,000 after acquiring an additional 80 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new position in shares of Regal Rexnord during the third quarter worth about $27,000. Garner Asset Management Corp bought a new position in shares of Regal Rexnord in the fourth quarter worth approximately $27,000. IFP Advisors Inc increased its position in shares of Regal Rexnord by 34.0% in the fourth quarter. IFP Advisors Inc now owns 193 shares of the company’s stock worth $27,000 after purchasing an additional 49 shares during the last quarter. Finally, Root Financial Partners LLC purchased a new stake in Regal Rexnord in the third quarter valued at approximately $28,000. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Regal Rexnord Price Performance

Shares of RRX traded up $8.24 during midday trading on Wednesday, hitting $195.50. 159,574 shares of the company traded hands, compared to its average volume of 1,095,180. The stock has a 50-day moving average of $194.31 and a 200-day moving average of $161.77. Regal Rexnord has a one year low of $90.56 and a one year high of $229.30. The firm has a market cap of $13.01 billion, a P/E ratio of 46.47, a PEG ratio of 1.66 and a beta of 1.05. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.15 and a quick ratio of 1.10.

Regal Rexnord (NYSE:RRX) last issued its quarterly earnings data on Thursday, February 5th. The company reported $2.51 EPS for the quarter, beating the consensus estimate of $2.47 by $0.04. The company had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. Regal Rexnord’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.34 earnings per share. As a group, sell-side analysts predict that Regal Rexnord will post 9.95 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on RRX shares. Robert W. Baird set a $253.00 target price on shares of Regal Rexnord in a research report on Friday, February 6th. Oppenheimer boosted their price target on shares of Regal Rexnord from $180.00 to $225.00 and gave the company an “outperform” rating in a research report on Friday, February 6th. Citigroup raised their price objective on shares of Regal Rexnord from $180.00 to $230.00 and gave the stock a “buy” rating in a report on Monday, February 9th. Jefferies Financial Group lowered shares of Regal Rexnord from a “buy” rating to a “hold” rating and reduced their price objective for the company from $170.00 to $160.00 in a research note on Wednesday, December 10th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Regal Rexnord from $190.00 to $230.00 and gave the company an “overweight” rating in a report on Friday, February 6th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Regal Rexnord has a consensus rating of “Moderate Buy” and an average target price of $228.50.

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.