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

Regal Rexnord Co. (NYSE:RRX) fell 6.3% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $147.48 and last traded at $145.27. 208,885 shares were traded during trading, a decline of 58% from the average session volume of 493,753 shares. The stock had previously closed at $155.07.

The company reported $2.34 earnings per share 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 Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, April 14th. Shareholders of record on Monday, March 31st will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 1.01%. The ex-dividend date is Monday, March 31st. Regal Rexnord’s dividend payout ratio is 44.16%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on RRX shares. Barclays dropped their price target on Regal Rexnord from $205.00 to $190.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 8th. The Goldman Sachs Group lifted their price target on Regal Rexnord from $191.00 to $213.00 and gave the stock a “buy” rating in a report on Thursday, December 12th. Oppenheimer reduced their price objective on Regal Rexnord from $210.00 to $190.00 and set an “outperform” rating for the company in a report on Friday. Jefferies Financial Group started coverage on Regal Rexnord in a report on Thursday, December 12th. They set a “buy” rating and a $215.00 price objective for the company. Finally, StockNews.com cut Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research note on Thursday, January 16th. One equities research analyst has rated the stock with a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Regal Rexnord has an average rating of “Moderate Buy” and an average price target of $199.50.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Creative Planning increased its holdings in Regal Rexnord by 28.5% in the second quarter. Creative Planning now owns 2,805 shares of the company’s stock valued at $379,000 after purchasing an additional 622 shares during the period. Sanctuary Advisors LLC acquired a new stake in shares of Regal Rexnord in the 2nd quarter worth about $263,000. GAMMA Investing LLC raised its holdings in shares of Regal Rexnord by 30.0% in the 3rd quarter. GAMMA Investing LLC now owns 841 shares of the company’s stock worth $140,000 after acquiring an additional 194 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of Regal Rexnord by 72.5% in the 3rd quarter. UMB Bank n.a. now owns 345 shares of the company’s stock worth $57,000 after acquiring an additional 145 shares during the last quarter. Finally, Ritholtz Wealth Management acquired a new stake in shares of Regal Rexnord in the 3rd quarter worth about $271,000. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Regal Rexnord Stock Performance

The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.35 and a current ratio of 2.45. The stock has a market cap of $9.20 billion, a PE ratio of 43.83, a price-to-earnings-growth ratio of 1.53 and a beta of 1.03. The company’s 50 day simple moving average is $160.47 and its 200 day simple moving average is $162.90.

Regal Rexnord Company Profile

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.