Regal Beloit Corp. (RBC) Upgraded to Hold by Zacks Investment Research
According to Zacks, “Regal Beloit’s long-term growth strategy involves organic growth through new product development, coupled with tactical investments in emerging markets through an aggressive acquisition policy. Regal Beloit continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. The company’s robust operating platform and an efficient management team are further expected to aid execution of its strategic priorities and drive net asset value. However, increased concentration risks and high R&D and integration costs related to its acquisitions reduce its profitability to some extent. The company has a dismal earnings history, having missed estimates thrice over the trailing four quarters. Regal Beloit’s earnings are susceptible to exchange rate volatility, which undermine its growth potential.”
A number of other brokerages have also recently commented on RBC. Credit Suisse Group AG reissued a buy rating and issued a $63.00 price objective on shares of Regal Beloit Corp. in a research note on Tuesday, August 9th. TheStreet raised shares of Regal Beloit Corp. from a hold rating to a buy rating in a research note on Thursday, August 18th. Jefferies Group reissued a hold rating on shares of Regal Beloit Corp. in a research note on Friday, July 1st. Finally, BMO Capital Markets cut shares of Regal Beloit Corp. from an outperform rating to a market perform rating and lowered their price objective for the company from $76.00 to $66.00 in a research note on Tuesday, August 2nd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $64.25.
Shares of Regal Beloit Corp. (NYSE:RBC) opened at 59.40 on Monday. Regal Beloit Corp. has a 12 month low of $47.77 and a 12 month high of $68.45. The firm’s 50 day moving average is $61.05 and its 200-day moving average is $60.25. The firm has a market capitalization of $2.66 billion, a PE ratio of 18.74 and a beta of 1.69.
Regal Beloit Corp. (NYSE:RBC) last posted its quarterly earnings results on Monday, August 8th. The company reported $1.14 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.24 by $0.10. Regal Beloit Corp. had a return on equity of 10.35% and a net margin of 4.30%. The company had revenue of $838.60 million for the quarter, compared to analyst estimates of $857.88 million. During the same period last year, the company earned $1.53 earnings per share. The business’s revenue for the quarter was down 11.0% compared to the same quarter last year. On average, analysts expect that Regal Beloit Corp. will post $4.39 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.62%. The ex-dividend date of this dividend is Wednesday, September 28th. Regal Beloit Corp.’s dividend payout ratio (DPR) is presently 30.28%.
In related news, VP Terry R. Colvin sold 1,615 shares of the stock in a transaction that occurred on Thursday, August 11th. The shares were sold at an average price of $62.47, for a total transaction of $100,889.05. Following the completion of the sale, the vice president now owns 21,146 shares of the company’s stock, valued at approximately $1,320,990.62. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 2.00% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Nomura Holdings Inc. acquired a new stake in Regal Beloit Corp. during the second quarter worth about $243,000. Mason Street Advisors LLC acquired a new stake in Regal Beloit Corp. during the second quarter worth about $1,123,000. Royal Bank of Canada increased its stake in Regal Beloit Corp. by 12.7% in the second quarter. Royal Bank of Canada now owns 472,864 shares of the company’s stock worth $26,033,000 after buying an additional 53,260 shares during the period. Public Employees Retirement System of Ohio increased its stake in Regal Beloit Corp. by 174.0% in the second quarter. Public Employees Retirement System of Ohio now owns 42,935 shares of the company’s stock worth $2,364,000 after buying an additional 27,268 shares during the period. Finally, Schwab Charles Investment Management Inc. increased its stake in Regal Beloit Corp. by 49.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 292,156 shares of the company’s stock worth $16,084,000 after buying an additional 96,370 shares during the period. 95.95% of the stock is owned by hedge funds and other institutional investors.
Regal Beloit Corp. Company Profile
Regal Beloit Corporation is a manufacturer of electric motors and controls, electric generators and controls, and power transmission products. The Company operates through three segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Its Commercial and Industrial Systems segment produces medium and large motors, commercial and industrial equipment, generator and custom drives and systems serving commercial heating, ventilation and air conditioning (HVAC), and power and oil and gas systems.
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