Regal Rexnord (NYSE:RRX) Shares Gap Down – Time to Sell?

Regal Rexnord Corporation (NYSE:RRX)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $220.04, but opened at $192.97. Regal Rexnord shares last traded at $194.13, with a volume of 638,331 shares trading hands.

Analyst Upgrades and Downgrades

RRX has been the subject of several analyst reports. Wolfe Research set a $250.00 price target on shares of Regal Rexnord in a research report on Thursday, July 9th. Weiss Ratings reissued a “hold (c)” rating on shares of Regal Rexnord in a report on Friday, July 17th. Deutsche Bank Aktiengesellschaft started coverage on Regal Rexnord in a research note on Monday, July 20th. They issued a “buy” rating and a $286.00 price target for the company. KeyCorp upped their price target on Regal Rexnord from $255.00 to $265.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Finally, Wall Street Zen cut Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Regal Rexnord presently has a consensus rating of “Moderate Buy” and a consensus target price of $247.00.

Regal Rexnord Stock Down 15.3%

The company has a quick ratio of 1.08, a current ratio of 2.17 and a debt-to-equity ratio of 0.69. The company has a market cap of $12.40 billion, a P/E ratio of 43.32, a price-to-earnings-growth ratio of 1.40 and a beta of 1.09. The company has a fifty day moving average of $213.60 and a 200 day moving average of $202.63.

Regal Rexnord (NYSE:RRX) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $2.99 EPS for the quarter, beating analysts’ consensus estimates of $2.58 by $0.41. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter in the prior year, the business earned $2.48 earnings per share. Regal Rexnord’s revenue for the quarter was up 4.2% compared to the same quarter last year. Regal Rexnord has set its FY 2026 guidance at 10.350-10.850 EPS. On average, research analysts anticipate that Regal Rexnord Corporation will post 10.65 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Wednesday, September 30th. Regal Rexnord’s dividend payout ratio is 32.56%.

Insider Buying and Selling

In related news, CFO Robert Rehard sold 6,499 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $200.00, for a total value of $1,299,800.00. Following the transaction, the chief financial officer owned 27,965 shares of the company’s stock, valued at approximately $5,593,000. This trade represents a 18.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Robin A. Walker-Lee sold 1,297 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the sale, the director directly owned 5,503 shares of the company’s stock, valued at approximately $1,176,816.55. The trade was a 19.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 30,305 shares of company stock valued at $6,341,869. 0.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC raised its position in Regal Rexnord by 208.1% in the 1st quarter. AQR Capital Management LLC now owns 17,747 shares of the company’s stock worth $2,011,000 after purchasing an additional 11,987 shares during the period. Jones Financial Companies Lllp raised its stake in Regal Rexnord by 91.6% during the 1st quarter. Jones Financial Companies Lllp now owns 617 shares of the company’s stock valued at $70,000 after purchasing an additional 295 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Regal Rexnord by 135.1% in the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock valued at $25,000 after purchasing an additional 127 shares in the last quarter. Cetera Investment Advisers boosted its position in shares of Regal Rexnord by 6.7% in the second quarter. Cetera Investment Advisers now owns 3,116 shares of the company’s stock worth $452,000 after buying an additional 196 shares during the period. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Regal Rexnord in the second quarter worth $4,759,000. Institutional investors own 99.72% of the company’s stock.

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.