RBC Bearings (ROLL) Lifted to “Hold” at Zacks Investment Research
According to Zacks, “RBC Bearings expects that strong demand from industrial and aerospace end markets will continue to drive its top line in the quarters ahead. Also, stellar revenues and reduced tax expenses will likely enhance its profitability. The company intends to lower its debt burden, fund new growth-oriented investments and provide higher returns to shareholders with these proceeds. However, in the past three months, the company’s shares have underperformed the industry and looks comparatively overvalued considering P/E multiples. Supply chain setbacks in some aerospace plants and high cost of sales are causes of concern. Over the past 0 days, Zacks Consensus Estimate for the company’s earnings has remained unchanged for both fiscal 2019 and fiscal 2020.”
A number of other brokerages have also recently issued reports on ROLL. Seaport Global Securities reissued a neutral rating on shares of RBC Bearings in a report on Monday, January 14th. ValuEngine cut shares of RBC Bearings from a buy rating to a hold rating in a report on Friday, March 22nd. Finally, BidaskClub cut shares of RBC Bearings from a hold rating to a sell rating in a report on Thursday, March 14th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company. The stock currently has an average rating of Hold and an average price target of $160.00.
RBC Bearings (NASDAQ:ROLL) last posted its quarterly earnings data on Tuesday, February 5th. The industrial products company reported $1.15 EPS for the quarter, beating the consensus estimate of $1.14 by $0.01. RBC Bearings had a return on equity of 12.77% and a net margin of 14.34%. The business had revenue of $171.45 million for the quarter, compared to the consensus estimate of $175.96 million. During the same quarter in the prior year, the business earned $1.05 earnings per share. RBC Bearings’s revenue for the quarter was up 2.8% on a year-over-year basis. On average, analysts predict that RBC Bearings will post 4.72 earnings per share for the current year.
In other news, CFO Daniel A. Bergeron sold 20,000 shares of the company’s stock in a transaction on Wednesday, February 13th. The shares were sold at an average price of $132.42, for a total value of $2,648,400.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Amir Faghri sold 2,500 shares of the company’s stock in a transaction on Friday, March 29th. The stock was sold at an average price of $127.35, for a total transaction of $318,375.00. The disclosure for this sale can be found here. Insiders have sold a total of 25,000 shares of company stock worth $3,282,250 in the last three months. Insiders own 3.10% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in ROLL. IFP Advisors Inc increased its holdings in shares of RBC Bearings by 66.7% in the fourth quarter. IFP Advisors Inc now owns 195 shares of the industrial products company’s stock worth $26,000 after purchasing an additional 78 shares during the period. Berman Capital Advisors LLC purchased a new position in RBC Bearings in the fourth quarter worth $33,000. Advisory Services Network LLC grew its position in RBC Bearings by 39.7% in the fourth quarter. Advisory Services Network LLC now owns 577 shares of the industrial products company’s stock worth $75,000 after acquiring an additional 164 shares in the last quarter. YorkBridge Wealth Partners LLC purchased a new stake in RBC Bearings during the fourth quarter valued at about $77,000. Finally, First Hawaiian Bank boosted its position in RBC Bearings by 55.7% during the fourth quarter. First Hawaiian Bank now owns 699 shares of the industrial products company’s stock valued at $92,000 after buying an additional 250 shares during the period. 99.17% of the stock is currently owned by hedge funds and other institutional investors.
RBC Bearings Company Profile
RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. It operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Engineered Products. The Plain Bearings segment produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings that are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or in heavy mining and construction equipment.
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