Regal Rexnord (NYSE:RRX) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Regal Rexnord (NYSE:RRX) from a buy rating to a hold rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

RRX has been the topic of several other reports. Weiss Ratings restated a “hold (c)” rating on shares of Regal Rexnord in a report on Thursday, October 15th. Oppenheimer lowered their target price on Regal Rexnord from $245.00 to $200.00 and set an “outperform” rating for the company in a report on Thursday, October 8th. KeyCorp dropped their price target on Regal Rexnord from $265.00 to $240.00 and set an “overweight” rating on the stock in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft assumed coverage on Regal Rexnord in a research note on Monday, July 20th. They set a “buy” rating and a $286.00 price target on the stock. Finally, The Goldman Sachs Group set a $216.00 target price on shares of Regal Rexnord in a research report on Wednesday, September 30th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $231.33.

Regal Rexnord Price Performance

Shares of RRX stock opened at $169.06 on Friday. The company has a market capitalization of $11.26 billion, a P/E ratio of 48.86, a P/E/G ratio of 1.30 and a beta of 1.09. The company’s 50-day simple moving average is $158.26 and its two-hundred day simple moving average is $189.57. Regal Rexnord has a one year low of $127.96 and a one year high of $247.80. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.21 and a quick ratio of 1.16.

Regal Rexnord (NYSE:RRX) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $2.90 earnings per share for the quarter, beating the consensus estimate of $2.65 by $0.25. The firm had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.56 billion. Regal Rexnord had a net margin of 3.77% and a return on equity of 10.28%. The company’s revenue was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.51 earnings per share. As a group, equities analysts anticipate that Regal Rexnord will post 10.73 EPS for the current year.

Regal Rexnord Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 14th. Stockholders of record on Thursday, December 31st will be paid a dividend of $0.35 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. Regal Rexnord’s dividend payout ratio (DPR) is presently 40.46%.

Hedge Funds Weigh In On Regal Rexnord

Several large investors have recently made changes to their positions in the company. Moors & Cabot Inc. raised its holdings in shares of Regal Rexnord by 6.8% during the third quarter. Moors & Cabot Inc. now owns 4,582 shares of the company’s stock valued at $711,000 after acquiring an additional 291 shares during the last quarter. Allworth Financial LP boosted its stake in shares of Regal Rexnord by 59.6% in the third quarter. Allworth Financial LP now owns 442 shares of the company’s stock worth $69,000 after acquiring an additional 165 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Regal Rexnord by 43.5% in the third quarter. Russell Investments Group Ltd. now owns 433,455 shares of the company’s stock worth $67,240,000 after acquiring an additional 131,497 shares during the last quarter. Maryland State Retirement & Pension System boosted its stake in Regal Rexnord by 9.2% during the 3rd quarter. Maryland State Retirement & Pension System now owns 3,662 shares of the company’s stock worth $568,000 after purchasing an additional 310 shares during the last quarter. Finally, Keybank National Association OH boosted its stake in Regal Rexnord by 8.3% during the 3rd quarter. Keybank National Association OH now owns 3,198 shares of the company’s stock worth $496,000 after purchasing an additional 246 shares during the last quarter. 99.72% of the stock is currently owned by institutional investors and hedge funds.

About Regal Rexnord

Regal Rexnord Corporation designs, manufactures and sells products and systems that transmit power, control motion and move materials. Its offerings include electric motors, gear drives, bearings, couplings, clutches, brakes, conveyor components and automation technologies.

The company serves customers in a range of industries, including industrial manufacturing, food and beverage, energy, commercial buildings and residential applications. Its products are used in equipment and systems such as factory machinery, conveyors, HVAC systems and material-handling operations.

Regal Rexnord was formed in 2021 through the combination of Regal Beloit Corporation and Rexnord Corporation’s Process & Motion Control business.