Regal Rexnord (NYSE:RRX) Shares Gap Down – Should You Sell?

Regal Rexnord Co. (NYSE:RRX) shares gapped down prior to trading on Tuesday . The stock had previously closed at $170.22, but opened at $150.30. Regal Rexnord shares last traded at $164.10, with a volume of 63,952 shares traded.

Wall Street Analysts Forecast Growth

RRX has been the subject of a number of analyst reports. StockNews.com raised Regal Rexnord from a “hold” rating to a “buy” rating in a research report on Wednesday, October 16th. Citigroup initiated coverage on Regal Rexnord in a research report on Monday, October 14th. They issued a “buy” rating and a $200.00 price target for the company. The Goldman Sachs Group increased their price objective on shares of Regal Rexnord from $176.00 to $195.00 and gave the company a “buy” rating in a research report on Friday, August 2nd. Barclays lifted their target price on shares of Regal Rexnord from $180.00 to $190.00 and gave the stock an “overweight” rating in a report on Wednesday, October 2nd. Finally, KeyCorp cut their price target on shares of Regal Rexnord from $210.00 to $190.00 and set an “overweight” rating on the stock in a report on Monday, July 15th. 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 data from MarketBeat.com, Regal Rexnord has an average rating of “Moderate Buy” and a consensus target price of $193.63.

Regal Rexnord Stock Performance

The firm has a market cap of $11.11 billion, a P/E ratio of -8,341.50, a P/E/G ratio of 1.78 and a beta of 1.04. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.38 and a current ratio of 2.45. The business’s 50-day simple moving average is $165.20 and its 200 day simple moving average is $156.13.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings results on Monday, November 4th. The company reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.04. Regal Rexnord had a positive return on equity of 9.16% and a negative net margin of 0.02%. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.53 billion. During the same period in the previous year, the company posted $2.10 EPS. The business’s quarterly revenue was down 10.4% compared to the same quarter last year. As a group, equities analysts predict that Regal Rexnord Co. will post 9.48 earnings per share for the current year.

Regal Rexnord Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 14th. Stockholders of record on Tuesday, December 31st will be paid a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.84%. Regal Rexnord’s dividend payout ratio (DPR) is presently -7,000.00%.

Hedge Funds Weigh In On Regal Rexnord

Large investors have recently made changes to their positions in the business. Victory Capital Management Inc. increased its holdings in Regal Rexnord by 42.7% in the 2nd quarter. Victory Capital Management Inc. now owns 1,884,575 shares of the company’s stock valued at $254,832,000 after acquiring an additional 563,853 shares during the last quarter. Capital World Investors lifted its position in shares of Regal Rexnord by 4.7% in the first quarter. Capital World Investors now owns 6,599,752 shares of the company’s stock worth $1,188,615,000 after buying an additional 296,941 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in Regal Rexnord by 24.7% during the second quarter. The Manufacturers Life Insurance Company now owns 1,125,445 shares of the company’s stock valued at $152,183,000 after buying an additional 222,775 shares during the last quarter. Diamond Hill Capital Management Inc. boosted its stake in Regal Rexnord by 7.1% during the second quarter. Diamond Hill Capital Management Inc. now owns 3,181,886 shares of the company’s stock valued at $430,255,000 after buying an additional 209,776 shares during the last quarter. Finally, TimesSquare Capital Management LLC increased its stake in Regal Rexnord by 64.4% in the 1st quarter. TimesSquare Capital Management LLC now owns 466,475 shares of the company’s stock worth $84,012,000 after acquiring an additional 182,770 shares during the last quarter. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Regal Rexnord Company Profile

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.