Regal Rexnord (NYSE:RRX) Shares Gap Down – Here’s What Happened

Regal Rexnord Corporation (NYSE:RRX)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $220.04, but opened at $192.97. Regal Rexnord shares last traded at $194.13, with a volume of 638,331 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. UBS Group set a $260.00 target price on Regal Rexnord in a research note on Monday, June 15th. KeyCorp lifted their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft began coverage on shares of Regal Rexnord in a report on Monday, July 20th. They issued a “buy” rating and a $286.00 price objective for the company. JPMorgan Chase & Co. increased their target price on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Finally, Wolfe Research set a $250.00 target price on shares of Regal Rexnord in a research report on Thursday, July 9th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Regal Rexnord currently has a consensus rating of “Moderate Buy” and an average price target of $247.00.

Regal Rexnord Stock Down 15.3%

The stock’s fifty day moving average is $213.60 and its 200 day moving average is $202.63. The company has a current ratio of 2.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.69. The company has a market capitalization of $12.40 billion, a P/E ratio of 43.32, a price-to-earnings-growth ratio of 1.40 and a beta of 1.09.

Regal Rexnord (NYSE:RRX) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $2.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.58 by $0.41. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The business had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter last year, the firm earned $2.48 EPS. The company’s revenue was up 4.2% on a year-over-year basis. Regal Rexnord has set its FY 2026 guidance at 10.350-10.850 EPS. Research analysts predict that Regal Rexnord Corporation will post 10.65 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, September 30th. Regal Rexnord’s dividend payout ratio (DPR) is currently 32.56%.

Insider Activity

In related news, CFO Robert Rehard sold 6,499 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the completion of the transaction, the chief financial officer owned 27,965 shares in the company, valued at $5,593,000. This represents a 18.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Louis V. Pinkham sold 22,509 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.68, for a total value of $4,764,705.12. Following the completion of the sale, the chief executive officer directly owned 56,749 shares of the company’s stock, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 30,305 shares of company stock valued at $6,341,869. Company insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Victory Capital Management Inc. lifted its holdings in shares of Regal Rexnord by 42.6% during the fourth quarter. Victory Capital Management Inc. now owns 5,658,365 shares of the company’s stock valued at $793,983,000 after purchasing an additional 1,690,264 shares during the last quarter. Viking Global Investors LP grew its stake in shares of Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock worth $497,231,000 after acquiring an additional 701,145 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Regal Rexnord by 5.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,530,092 shares of the company’s stock valued at $355,031,000 after acquiring an additional 131,171 shares in the last quarter. Invesco Ltd. raised its position in shares of Regal Rexnord by 27.1% in the 4th quarter. Invesco Ltd. now owns 1,905,828 shares of the company’s stock worth $267,426,000 after purchasing an additional 405,828 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its position in shares of Regal Rexnord by 115.5% in the 1st quarter. Bank of New York Mellon Corp now owns 1,836,264 shares of the company’s stock worth $343,859,000 after purchasing an additional 984,185 shares during the last quarter. Institutional investors own 99.72% of the company’s stock.

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.