Shares of Regal Rexnord Corporation (NYSE: RRX) have received a consensus rating of “Moderate Buy” from analysts, according to a report from MarketBeat Ratings. The assessment comes from ten research firms monitoring the company, with three analysts recommending a hold position and seven advocating for a buy.
The average price target set by brokers over the past year stands at $179.63. Recent reports have shown varying perspectives from analysts, with some adjusting their ratings on Regal Rexnord shares. Notably, Wall Street Zen downgraded the stock from a “strong-buy” to a “buy” on September 21, 2023. Similarly, Zacks Research upgraded the shares from a “strong sell” to a “hold” on December 30, 2023. In an earlier report, Robert W. Baird set a price objective of $212.00 on October 31, 2023, while Jefferies Financial Group reduced its target from $170.00 to $160.00 on December 10, 2023. Meanwhile, Barclays maintained an “overweight” rating with a price target of $165.00 as of November 3, 2023.
Insider Activity and Institutional Investments
In related news, CEO Louis V. Pinkham sold 35,935 shares of Regal Rexnord on November 25, 2023, at an average price of $146.20, totaling approximately $5.25 million. Following this transaction, Pinkham’s ownership in the company decreased by 25.82%, leaving him with 103,262 shares valued at around $15.1 million. This insider transaction was disclosed in a filing with the Securities and Exchange Commission.
On the institutional front, several hedge funds have adjusted their stakes in Regal Rexnord. Victory Capital Management Inc. increased its holdings by 138.4% in the third quarter, acquiring an additional 2,303,373 shares and raising its total to approximately $566.98 million. Additionally, Norges Bank invested $256.16 million in the second quarter, while Nordea Investment Management AB purchased shares valued at $224.89 million. Viking Global Investors LP also boosted its stake by 25.7%, owning about 3.43 million shares worth $497.23 million. Overall, institutional investors now hold 99.72% of Regal Rexnord’s stock.
Recent Financial Performance and Future Outlook
The stock of Regal Rexnord opened at $152.65 on Friday, reflecting a robust market capitalization of approximately $10.13 billion. The company reports a debt-to-equity ratio of 0.71, with a quick ratio of 0.97 and a current ratio of 2.05. Over the past 50 days, the stock has a simple moving average of $142.45, and a two-hundred day average of $145.23. Regal Rexnord’s shares have fluctuated between a 52-week low of $90.56 and a high of $167.77.
On September 8, 2023, Regal Rexnord announced earnings of $2.76 per share for the quarter, achieving a return on equity of 9.64% and a net margin of 4.38%. The company reported revenue of $1.85 billion for the quarter, and analysts anticipate an earnings per share (EPS) of 9.95 for the current fiscal year.
In addition, Regal Rexnord declared a quarterly dividend to be paid on January 14, 2024. Shareholders on record as of December 31, 2023, will receive a dividend of $0.35 per share, translating to an annualized yield of 0.9%. The company currently maintains a payout ratio of 36.18%.
Regal Rexnord Corporation is a global industrial manufacturer specializing in electric motors, power generation equipment, and automated motion control systems. The company’s diverse product portfolio supports critical applications across multiple industries, including HVAC, refrigeration, data centers, and food processing.
