Investors Buy Large Volume of Regal Rexnord Call Options (NYSE:RRX)

Regal Rexnord Co. (NYSE:RRX) saw unusually large options trading on Wednesday. Investors purchased 2,500 call options on the stock. This is an increase of approximately 1,016% compared to the average volume of 224 call options.

Analyst Upgrades and Downgrades

RRX has been the topic of a number of research analyst reports. The Goldman Sachs Group boosted their price target on Regal Rexnord from $191.00 to $213.00 and gave the stock a “buy” rating in a research note on Thursday, December 12th. Loop Capital reissued a “buy” rating and set a $200.00 target price on shares of Regal Rexnord in a research report on Thursday, September 19th. Jefferies Financial Group initiated coverage on Regal Rexnord in a research report on Thursday, December 12th. They issued a “buy” rating and a $215.00 target price on the stock. Citigroup reduced their target price on Regal Rexnord from $210.00 to $190.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, 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. One equities research analyst has rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, Regal Rexnord currently has an average rating of “Moderate Buy” and an average target price of $202.00.

Insider Buying and Selling

In other news, CEO Louis V. Pinkham sold 8,774 shares of the company’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $180.03, for a total transaction of $1,579,583.22. Following the transaction, the chief executive officer now directly owns 149,618 shares of the company’s stock, valued at approximately $26,935,728.54. This represents a 5.54 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.82% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Point72 Asset Management L.P. acquired a new stake in shares of Regal Rexnord during the 3rd quarter valued at about $83,460,000. Westfield Capital Management Co. LP grew its holdings in Regal Rexnord by 68.9% in the third quarter. Westfield Capital Management Co. LP now owns 979,521 shares of the company’s stock valued at $162,483,000 after purchasing an additional 399,649 shares during the period. The Manufacturers Life Insurance Company grew its holdings in Regal Rexnord by 24.7% in the second quarter. The Manufacturers Life Insurance Company now owns 1,125,445 shares of the company’s stock valued at $152,183,000 after purchasing an additional 222,775 shares during the period. Forest Avenue Capital Management LP increased its position in shares of Regal Rexnord by 63.8% in the second quarter. Forest Avenue Capital Management LP now owns 262,910 shares of the company’s stock valued at $35,551,000 after buying an additional 102,412 shares in the last quarter. Finally, Millennium Management LLC raised its stake in shares of Regal Rexnord by 1,108.9% during the 2nd quarter. Millennium Management LLC now owns 96,819 shares of the company’s stock worth $13,092,000 after buying an additional 88,810 shares during the period. Institutional investors and hedge funds own 99.72% of the company’s stock.

Regal Rexnord Stock Performance

Shares of RRX stock opened at $158.55 on Friday. The stock has a market cap of $10.50 billion, a PE ratio of 50.02, a price-to-earnings-growth ratio of 1.44 and a beta of 1.04. Regal Rexnord has a 52-week low of $130.94 and a 52-week high of $185.28. The business has a 50-day simple moving average of $164.80 and a 200-day simple moving average of $161.10. The company has a quick ratio of 1.35, a current ratio of 2.45 and a debt-to-equity ratio of 0.87.

Regal Rexnord (NYSE:RRX) last announced its quarterly earnings results on Monday, November 4th. The company reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.48 by $0.01. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.53 billion. Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%. Regal Rexnord’s revenue for the quarter was down 10.4% on a year-over-year basis. During the same period in the previous year, the company posted $2.10 earnings per share. On average, equities analysts expect that Regal Rexnord will post 9.24 EPS for the current year.

Regal Rexnord Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, January 14th. Shareholders of record on Tuesday, December 31st were issued a $0.35 dividend. The ex-dividend date was Tuesday, December 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.88%. Regal Rexnord’s payout ratio is 44.16%.

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.