Rexnord (RXN) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Rexnord (NYSE:RXN) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning.
According to Zacks, “In the past month, Rexnord's shares have outperformed the industry. In second-quarter fiscal 2019, the company's adjusted earnings trumped the Zacks Consensus Estimate by 12.2% while grew 37.5% year over year on the back of solid top-line growth. The company expects to gain from product innovation, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. World Dryer and Centa Power buyouts are expected to boost the company's businesses while its plans to divest VAG operations are anticipated to free resources, which can be used for debt reduction. Core sales growth is predicted to be in a mid-single digit. However, rising costs and expenses as well as weakening cash positions remain concerns. Also, the stock is overvalued compared with the industry.”
Several other analysts also recently weighed in on RXN. KeyCorp boosted their target price on Rexnord from $33.00 to $34.00 and gave the company an overweight rating in a report on Tuesday, July 31st. Oppenheimer reissued a buy rating and issued a $35.00 target price on shares of Rexnord in a report on Monday, July 30th. Bank of America boosted their target price on Rexnord from $32.00 to $33.00 and gave the company a buy rating in a report on Tuesday, July 31st. Goldman Sachs Group initiated coverage on Rexnord in a report on Tuesday, October 2nd. They issued a neutral rating and a $31.00 target price for the company. Finally, ValuEngine downgraded Rexnord from a buy rating to a hold rating in a report on Thursday, October 18th. Three equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average price target of $32.57.
Rexnord (NYSE:RXN) last posted its earnings results on Tuesday, October 30th. The industrial products company reported $0.46 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.42 by $0.04. Rexnord had a positive return on equity of 16.99% and a negative net margin of 0.89%. The business had revenue of $524.80 million during the quarter, compared to the consensus estimate of $516.66 million. During the same period in the previous year, the business earned $0.32 EPS. The business’s quarterly revenue was up 15.6% on a year-over-year basis. On average, equities research analysts expect that Rexnord will post 1.75 EPS for the current year.
In related news, insider Craig Wehr sold 7,500 shares of the business’s stock in a transaction dated Friday, November 2nd. The stock was sold at an average price of $28.50, for a total value of $213,750.00. Following the transaction, the insider now owns 15,054 shares in the company, valued at approximately $429,039. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Theodore D. Crandall purchased 4,000 shares of the company’s stock in a transaction that occurred on Thursday, November 1st. The stock was bought at an average price of $27.84 per share, for a total transaction of $111,360.00. Following the transaction, the director now directly owns 20,330 shares in the company, valued at $565,987.20. The disclosure for this purchase can be found here. Insiders own 4.50% of the company’s stock.
A number of hedge funds have recently modified their holdings of RXN. SG Americas Securities LLC increased its position in Rexnord by 22.3% in the 2nd quarter. SG Americas Securities LLC now owns 9,266 shares of the industrial products company’s stock valued at $269,000 after acquiring an additional 1,692 shares during the period. DekaBank Deutsche Girozentrale acquired a new position in Rexnord during the 3rd quarter worth approximately $290,000. Jane Street Group LLC acquired a new position in Rexnord during the 2nd quarter worth approximately $314,000. Stone Ridge Asset Management LLC acquired a new position in Rexnord during the 3rd quarter worth approximately $326,000. Finally, Ramsey Quantitative Systems increased its position in Rexnord by 28.3% during the 2nd quarter. Ramsey Quantitative Systems now owns 12,197 shares of the industrial products company’s stock worth $354,000 after purchasing an additional 2,694 shares during the period.
Rexnord Company Profile
Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies.
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