Regal Rexnord (NYSE:RRX) Shares Gap Down – What’s Next?

Regal Rexnord Corporation (NYSE:RRX) shares gapped down prior to trading on Thursday . The stock had previously closed at $231.37, but opened at $211.17. Regal Rexnord shares last traded at $205.5220, with a volume of 537,988 shares traded.

Wall Street Analyst Weigh In

RRX has been the subject of a number of analyst reports. Citigroup upped their price target on Regal Rexnord from $230.00 to $240.00 and gave the stock a “buy” rating in a research report on Monday, April 13th. Oppenheimer upped their price target on Regal Rexnord from $180.00 to $225.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. Wall Street Zen cut Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, April 28th. The Goldman Sachs Group upped their price target on Regal Rexnord from $170.00 to $230.00 and gave the stock a “buy” rating in a research report on Monday, February 9th. Finally, Robert W. Baird set a $253.00 price target on Regal Rexnord in a research report on Friday, February 6th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $231.00.

Regal Rexnord Stock Performance

The stock has a market cap of $14.31 billion, a P/E ratio of 50.00, a price-to-earnings-growth ratio of 1.92 and a beta of 1.15. The company has a quick ratio of 1.10, a current ratio of 2.17 and a debt-to-equity ratio of 0.69. The business has a 50 day moving average price of $200.38 and a two-hundred day moving average price of $172.61.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings data on Wednesday, May 6th. The company reported $2.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.43 billion. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The business’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.15 earnings per share. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS. On average, sell-side analysts forecast that Regal Rexnord Corporation will post 10.73 earnings per share for the current fiscal year.

Regal Rexnord Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be paid a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is presently 32.56%.

Insider Activity at Regal Rexnord

In related news, EVP Cheryl Lewis sold 2,262 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $215.73, for a total transaction of $487,981.26. Following the completion of the transaction, the executive vice president directly owned 13,219 shares of the company’s stock, valued at approximately $2,851,734.87. This represents a 14.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Louis V. Pinkham sold 36,728 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $215.52, for a total value of $7,915,618.56. Following the transaction, the chief executive officer directly owned 83,337 shares of the company’s stock, valued at approximately $17,960,790.24. The trade was a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 48,951 shares of company stock valued at $10,576,689. Insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On Regal Rexnord

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RRX. Covestor Ltd boosted its stake in Regal Rexnord by 81.6% during the fourth quarter. Covestor Ltd now owns 178 shares of the company’s stock valued at $25,000 after buying an additional 80 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Regal Rexnord by 135.1% during the first quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock valued at $25,000 after buying an additional 127 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in Regal Rexnord during the third quarter valued at approximately $27,000. Garner Asset Management Corp purchased a new stake in Regal Rexnord during the fourth quarter valued at approximately $27,000. Finally, IFP Advisors Inc raised its position in Regal Rexnord by 34.0% during the fourth quarter. IFP Advisors Inc now owns 193 shares of the company’s stock valued at $27,000 after purchasing an additional 49 shares during the period. 99.72% of the stock is owned by institutional investors.

About Regal Rexnord

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.