Regal Rexnord Co. (NYSE:RRX) Sees Significant Drop in Short Interest

Regal Rexnord Co. (NYSE:RRX) saw a significant decrease in short interest in January. As of January 15th, there was short interest totalling 1,190,000 shares, a decrease of 19.0% from the December 31st total of 1,470,000 shares. Based on an average daily volume of 466,100 shares, the days-to-cover ratio is presently 2.6 days. Currently, 1.8% of the shares of the company are sold short.

Analysts Set New Price Targets

RRX has been the topic of a number of research analyst reports. Barclays lowered their target price on Regal Rexnord from $205.00 to $190.00 and set an “overweight” rating on the stock in a report on Wednesday, January 8th. Citigroup cut their price objective on Regal Rexnord from $210.00 to $190.00 and set a “buy” rating for the company in a research report on Tuesday, January 14th. Jefferies Financial Group initiated coverage on Regal Rexnord in a research report on Thursday, December 12th. They issued a “buy” rating and a $215.00 price objective for the company. The Goldman Sachs Group boosted their target price on Regal Rexnord from $191.00 to $213.00 and gave the stock a “buy” rating in a research report on Thursday, December 12th. Finally, Robert W. Baird decreased their price objective on Regal Rexnord from $223.00 to $208.00 and set an “outperform” rating for the company in a research note on Wednesday, November 6th. One investment analyst has rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $202.00.

Regal Rexnord Trading Down 4.4 %

RRX traded down $6.95 during midday trading on Monday, hitting $151.78. 861,748 shares of the company were exchanged, compared to its average volume of 490,744. The firm has a market capitalization of $10.05 billion, a P/E ratio of 47.88, a P/E/G ratio of 1.53 and a beta of 1.03. Regal Rexnord has a 1-year low of $130.94 and a 1-year high of $185.28. The firm’s 50 day moving average price is $161.65 and its 200-day moving average price is $163.05. The company has a quick ratio of 1.35, a current ratio of 2.45 and a debt-to-equity ratio of 0.87.

Regal Rexnord (NYSE:RRX) last posted its quarterly earnings results on Monday, November 4th. The company reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.48 by $0.01. The business had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.53 billion. Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%. The firm’s revenue for the quarter was down 10.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.10 EPS. As a group, equities analysts forecast that Regal Rexnord will post 9.24 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 14th. Investors of record on Monday, March 31st will be paid a $0.35 dividend. The ex-dividend date of this dividend is Monday, March 31st. This represents a $1.40 annualized dividend and a yield of 0.92%. Regal Rexnord’s payout ratio is 44.16%.

Insider Transactions at Regal Rexnord

In related news, CEO Louis V. Pinkham sold 8,774 shares of the firm’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $180.03, for a total transaction of $1,579,583.22. Following the completion of the transaction, the chief executive officer now owns 149,618 shares of the company’s stock, valued at $26,935,728.54. This trade represents a 5.54 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.82% of the company’s stock.

Institutional Investors Weigh In On Regal Rexnord

Institutional investors have recently made changes to their positions in the stock. Hudson Edge Investment Partners Inc. increased its stake in Regal Rexnord by 50.3% in the fourth quarter. Hudson Edge Investment Partners Inc. now owns 4,790 shares of the company’s stock valued at $743,000 after acquiring an additional 1,602 shares during the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of Regal Rexnord by 22.4% during the fourth quarter. Handelsbanken Fonder AB now owns 19,114 shares of the company’s stock valued at $2,965,000 after purchasing an additional 3,500 shares during the last quarter. TimesSquare Capital Management LLC increased its position in shares of Regal Rexnord by 35.7% during the fourth quarter. TimesSquare Capital Management LLC now owns 884,095 shares of the company’s stock valued at $137,150,000 after acquiring an additional 232,509 shares in the last quarter. CIBC Asset Management Inc increased its position in shares of Regal Rexnord by 5.2% during the fourth quarter. CIBC Asset Management Inc now owns 2,061 shares of the company’s stock valued at $320,000 after acquiring an additional 101 shares in the last quarter. Finally, Tobam bought a new stake in Regal Rexnord in the 4th quarter worth approximately $45,000. Hedge funds and other institutional investors own 99.72% of the company’s stock.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.