Regal Rexnord (NYSE:RRX) Trading Down 6.3% on Disappointing Earnings

Regal Rexnord Co. (NYSE:RRX)’s share price dropped 6.3% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $147.48 and last traded at $145.27. Approximately 208,885 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 493,753 shares. The stock had previously closed at $155.07.

The company reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.56 by ($0.22). Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%.

Regal Rexnord Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, April 14th. Stockholders of record on Monday, March 31st will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 0.98%. The ex-dividend date of this dividend is Monday, March 31st. Regal Rexnord’s dividend payout ratio is presently 44.16%.

Analysts Set New Price Targets

Several research firms have recently weighed in on RRX. StockNews.com downgraded shares of Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research note on Thursday, January 16th. The Goldman Sachs Group lifted their price target on shares of Regal Rexnord from $191.00 to $213.00 and gave the company a “buy” rating in a research note on Thursday, December 12th. Barclays decreased their price target on shares of Regal Rexnord from $205.00 to $190.00 and set an “overweight” rating for the company in a research note on Wednesday, January 8th. Jefferies Financial Group initiated coverage on shares of Regal Rexnord in a research note on Thursday, December 12th. They set a “buy” rating and a $215.00 price target for the company. Finally, Robert W. Baird cut their price objective on shares of Regal Rexnord from $223.00 to $208.00 and set an “outperform” rating on the stock in a report on Wednesday, November 6th. One research analyst has rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, Regal Rexnord currently has a consensus rating of “Moderate Buy” and an average price target of $202.00.

Institutional Investors Weigh In On Regal Rexnord

Institutional investors and hedge funds have recently made changes to their positions in the stock. Tobam acquired a new stake in shares of Regal Rexnord during the fourth quarter worth $45,000. Jones Financial Companies Lllp lifted its stake in shares of Regal Rexnord by 90.5% during the fourth quarter. Jones Financial Companies Lllp now owns 322 shares of the company’s stock worth $50,000 after buying an additional 153 shares during the period. Smartleaf Asset Management LLC lifted its stake in shares of Regal Rexnord by 45.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 337 shares of the company’s stock worth $52,000 after buying an additional 105 shares during the period. UMB Bank n.a. lifted its stake in shares of Regal Rexnord by 72.5% during the third quarter. UMB Bank n.a. now owns 345 shares of the company’s stock worth $57,000 after buying an additional 145 shares during the period. Finally, Nomura Asset Management Co. Ltd. lifted its position in Regal Rexnord by 30.3% during the third quarter. Nomura Asset Management Co. Ltd. now owns 430 shares of the company’s stock valued at $71,000 after purchasing an additional 100 shares during the period. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Regal Rexnord Stock Down 8.1 %

The company has a market capitalization of $9.44 billion, a price-to-earnings ratio of 44.95, a P/E/G ratio of 1.53 and a beta of 1.03. The business’s 50-day moving average is $161.01 and its 200-day moving average is $163.04. The company has a quick ratio of 1.35, a current ratio of 2.45 and a debt-to-equity ratio of 0.87.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets.