Regal Rexnord (NYSE:RRX) Stock Price Up 10.8% on Strong Earnings

Regal Rexnord Corporation (NYSE:RRX) rose 10.8% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $175.99 and last traded at $178.2390. Approximately 778,543 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 1,137,037 shares. The stock had previously closed at $160.93.

The company reported $2.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.65 by $0.25. Regal Rexnord had a net margin of 5.35% and a return on equity of 9.93%. The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.56 billion. During the same quarter in the prior year, the business posted $2.51 EPS. The business’s revenue was up 6.1% compared to the same quarter last year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Thursday, December 31st will be issued a $0.35 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.40 annualized dividend and a yield of 0.8%. Regal Rexnord’s payout ratio is currently 28.87%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RRX. Wolfe Research set a $250.00 price objective on shares of Regal Rexnord in a research report on Thursday, July 9th. Citigroup dropped their target price on shares of Regal Rexnord from $220.00 to $200.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a report on Thursday, October 15th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Regal Rexnord in a research report on Monday, July 20th. They set a “buy” rating and a $286.00 price target on the stock. Finally, Wall Street Zen raised shares of Regal Rexnord from a “hold” rating to a “buy” rating in a research note on Saturday, October 24th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $230.50.

Institutional Trading of Regal Rexnord

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Clearstead Trust LLC acquired a new position in Regal Rexnord in the second quarter valued at $25,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Regal Rexnord in the 2nd quarter worth about $27,000. Root Financial Partners LLC bought a new position in shares of Regal Rexnord in the third quarter valued at approximately $41,000. FNY Investment Advisers LLC bought a new stake in Regal Rexnord during the second quarter worth $43,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in Regal Rexnord in the 2nd quarter valued at $43,000. Institutional investors and hedge funds own 99.72% of the company’s stock.

Regal Rexnord Stock Performance

The company’s 50 day moving average price is $157.73 and its 200-day moving average price is $189.29. The stock has a market cap of $11.85 billion, a P/E ratio of 36.71, a price-to-earnings-growth ratio of 1.28 and a beta of 1.09. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.16 and a current ratio of 2.28.

About Regal Rexnord

Regal Rexnord Corporation is an industrial manufacturing company that develops and produces electric motors, power transmission components, motion-control systems and other equipment used in industrial and commercial applications. Its products include motors, gearboxes, bearings, couplings, belts, chains, drives, clutches, brakes and related controls, as well as air-moving and power-management solutions.

The company serves customers across industries such as automation, material handling, food and beverage, renewable energy, heating and ventilation, agriculture, and general industrial production.