Regal Rexnord (NYSE:RRX) Shares Gap Up – Here’s Why

Shares of Regal Rexnord Corporation (NYSE:RRX) gapped up before the market opened on Wednesday . The stock had previously closed at $238.19, but opened at $247.80. Regal Rexnord shares last traded at $230.94, with a volume of 301,236 shares.

Wall Street Analyst Weigh In

A number of research firms have commented on RRX. KeyCorp boosted their target price on Regal Rexnord from $255.00 to $265.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Citigroup lifted their price target on Regal Rexnord from $230.00 to $240.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. Wall Street Zen lowered shares of Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, April 28th. DA Davidson assumed coverage on shares of Regal Rexnord in a research note on Tuesday, June 16th. They issued a “buy” rating and a $260.00 price objective on the stock. Finally, Barclays raised their target price on shares of Regal Rexnord from $237.00 to $245.00 and gave the company an “overweight” rating in a report on Monday, March 23rd. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $237.80.

Regal Rexnord Stock Performance

The stock has a market cap of $14.54 billion, a price-to-earnings ratio of 50.79, a price-to-earnings-growth ratio of 2.15 and a beta of 1.08. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. The stock’s 50-day moving average is $212.19 and its 200-day moving average is $192.36.

Regal Rexnord (NYSE:RRX) last issued its quarterly earnings results on Thursday, May 7th. The company reported $2.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the prior year, the company posted $2.15 EPS. The business’s revenue for the quarter was up 4.3% compared to the same quarter last year. Analysts anticipate that Regal Rexnord Corporation will post 10.64 EPS for the current fiscal year.

Regal Rexnord Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 0.6%. The ex-dividend date is Tuesday, June 30th. Regal Rexnord’s dividend 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 dated 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 owned 56,749 shares in the company, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Robin A. Walker-Lee sold 1,297 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the transaction, the director directly owned 5,503 shares of the company’s stock, valued at approximately $1,176,816.55. This represents a 19.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 30,305 shares of company stock worth $6,341,869. 0.63% of the stock is owned by company insiders.

Institutional Investors Weigh In On Regal Rexnord

Hedge funds have recently modified their holdings of the stock. Victory Capital Management Inc. lifted its stake in shares of Regal Rexnord by 42.6% in the 4th 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 in the last quarter. Bank of New York Mellon Corp increased its position in Regal Rexnord by 115.5% during 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 in the last quarter. Bessemer Group Inc. increased its position in Regal Rexnord by 4,155.4% during the 1st quarter. Bessemer Group Inc. now owns 916,054 shares of the company’s stock worth $171,541,000 after purchasing an additional 894,527 shares in the last quarter. Norges Bank purchased a new position in Regal Rexnord in the fourth quarter valued at approximately $121,301,000. Finally, Viking Global Investors LP raised its holdings in Regal Rexnord by 25.7% in the second quarter. Viking Global Investors LP now owns 3,430,128 shares of the company’s stock valued at $497,231,000 after buying an additional 701,145 shares during the period. 99.72% of the stock is owned by institutional investors and hedge funds.

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.