Rexnord (RXN) Rating 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 note published on Wednesday.
According to Zacks, “Rexnord 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 remain concerns. The stock looks relatively more leveraged than the industry. Also, Rexnord's lower cash ratio indicates its inability to pay off its short-term liabilities while a falling ratio seems to be worsening the situation. In the past month, the company's shares have underperformed the industry.”
Several other brokerages have also weighed in on RXN. Goldman Sachs Group began coverage on shares of Rexnord in a research note on Tuesday, October 2nd. They set a neutral rating and a $31.00 target price for the company. Oppenheimer increased their target price on shares of Rexnord from $35.00 to $37.00 and gave the stock a buy rating in a research note on Wednesday, October 10th. ValuEngine raised shares of Rexnord from a hold rating to a buy rating in a research note on Friday, November 16th. Credit Suisse Group reaffirmed a neutral rating and set a $31.00 target price on shares of Rexnord in a research note on Friday, November 23rd. Finally, TheStreet raised shares of Rexnord from a c+ rating to a b- rating in a research note on Monday, December 3rd. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. The company presently has an average rating of Buy and an average target price of $32.13.
Rexnord (NYSE:RXN) last announced its earnings results on Tuesday, October 30th. The industrial products company reported $0.46 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.04. The company had revenue of $524.80 million during the quarter, compared to analyst estimates of $516.66 million. Rexnord had a negative net margin of 0.89% and a positive return on equity of 16.99%. Rexnord’s revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.32 earnings per share. Equities research analysts anticipate that Rexnord will post 1.75 earnings per share for the current fiscal year.
In other news, insider Craig Wehr sold 7,500 shares of the stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $28.50, for a total transaction of $213,750.00. Following the sale, the insider now owns 15,054 shares of the company’s stock, valued at $429,039. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Theodore D. Crandall purchased 4,000 shares of Rexnord stock in a transaction dated Thursday, November 1st. The shares were acquired at an average cost of $27.84 per share, for a total transaction of $111,360.00. Following the transaction, the director now directly owns 20,330 shares of the company’s stock, valued at approximately $565,987.20. The disclosure for this purchase can be found here. Insiders have sold 29,964 shares of company stock worth $850,167 in the last three months. Corporate insiders own 4.50% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of RXN. Wells Fargo & Company MN lifted its position in shares of Rexnord by 5.6% during the second quarter. Wells Fargo & Company MN now owns 2,172,269 shares of the industrial products company’s stock worth $63,126,000 after purchasing an additional 116,164 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Rexnord by 11.9% during the second quarter. First Trust Advisors LP now owns 442,205 shares of the industrial products company’s stock worth $12,850,000 after purchasing an additional 47,044 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Rexnord by 8.7% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 252,134 shares of the industrial products company’s stock worth $7,327,000 after purchasing an additional 20,251 shares in the last quarter. Rhumbline Advisers lifted its position in shares of Rexnord by 2.2% during the second quarter. Rhumbline Advisers now owns 107,108 shares of the industrial products company’s stock worth $3,113,000 after purchasing an additional 2,257 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of Rexnord by 10.3% during the second quarter. Bank of New York Mellon Corp now owns 1,767,648 shares of the industrial products company’s stock worth $51,368,000 after purchasing an additional 165,561 shares in the last quarter.
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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