Regal Rexnord (NYSE:RRX) Sets New 1-Year High – Should You Buy?

Regal Rexnord Corporation (NYSE:RRX)’s share price hit a new 52-week high on Tuesday . The stock traded as high as $238.45 and last traded at $225.9020, with a volume of 433862 shares trading hands. The stock had previously closed at $219.88.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on RRX shares. UBS Group set a $260.00 price target on shares of Regal Rexnord in a research report on Monday, June 15th. Wall Street Zen lowered Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, April 28th. JPMorgan Chase & Co. increased their target price on Regal Rexnord from $230.00 to $240.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Barclays raised their target price on Regal Rexnord from $237.00 to $245.00 and gave the stock an “overweight” rating in a research report on Monday, March 23rd. Finally, KeyCorp boosted their price target on Regal Rexnord from $255.00 to $265.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $237.80.

Regal Rexnord Stock Up 3.5%

The stock has a market capitalization of $15.16 billion, a P/E ratio of 52.92, a P/E/G ratio of 2.06 and a beta of 1.11. The firm’s fifty day moving average is $210.92 and its 200-day moving average is $190.74. The company has a current ratio of 2.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.69.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings results on Thursday, May 7th. The company reported $2.17 EPS for the quarter, beating analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The company’s revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.15 earnings per share. As a group, equities research analysts predict that Regal Rexnord Corporation will post 10.64 earnings per share for the current year.

Regal Rexnord Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Regal Rexnord’s payout ratio is presently 32.56%.

Insider Buying and Selling

In other Regal Rexnord news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord 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 transaction, the chief executive officer owned 56,749 shares in the company, valued at approximately $12,012,628.32. The trade was a 28.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Robert Rehard sold 6,499 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total value of $1,299,800.00. Following the completion of the transaction, the chief financial officer directly owned 27,965 shares in the company, valued at approximately $5,593,000. This represents a 18.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 30,305 shares of company stock worth $6,341,869 in the last three months. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

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

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.