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

Regal Rexnord Co. (NYSE:RRX) fell 6.3% on Thursday following a dissappointing earnings announcement. The company traded as low as $147.48 and last traded at $145.27. 208,885 shares traded hands during mid-day 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 analysts’ consensus estimates of $2.56 by ($0.22). Regal Rexnord had a net margin of 3.41% and a return on equity of 9.48%.

Regal Rexnord Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, April 14th. Investors of record on Monday, March 31st will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 0.96%. The ex-dividend date is Monday, March 31st. Regal Rexnord’s dividend payout ratio is currently 44.16%.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. 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 report on Thursday, December 12th. Barclays dropped their target price on shares of Regal Rexnord from $205.00 to $190.00 and set an “overweight” rating for the company in a research report on Wednesday, January 8th. Jefferies Financial Group assumed coverage on shares of Regal Rexnord in a report on Thursday, December 12th. They issued a “buy” rating and a $215.00 price target on the stock. StockNews.com cut shares of Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research note on Thursday, January 16th. Finally, Robert W. Baird cut their price objective on Regal Rexnord from $223.00 to $208.00 and set an “outperform” rating for the company in a research report on Wednesday, November 6th. One equities research analyst has rated the stock with a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, Regal Rexnord currently has an average rating of “Moderate Buy” and a consensus target price of $202.00.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RRX. Tobam purchased a new stake in Regal Rexnord during the fourth quarter valued at approximately $45,000. Jones Financial Companies Lllp increased its position in shares of Regal Rexnord by 90.5% during the 4th quarter. Jones Financial Companies Lllp now owns 322 shares of the company’s stock valued at $50,000 after purchasing an additional 153 shares during the last quarter. Smartleaf Asset Management LLC raised its holdings in Regal Rexnord by 45.3% during the 4th quarter. Smartleaf Asset Management LLC now owns 337 shares of the company’s stock valued at $52,000 after buying an additional 105 shares during the period. UMB Bank n.a. lifted its position in Regal Rexnord by 72.5% in 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 last quarter. Finally, Nomura Asset Management Co. Ltd. boosted its stake in Regal Rexnord by 30.3% during the third quarter. Nomura Asset Management Co. Ltd. now owns 430 shares of the company’s stock worth $71,000 after buying an additional 100 shares during the period. Institutional investors own 99.72% of the company’s stock.

Regal Rexnord Price Performance

The firm has a market cap of $9.65 billion, a P/E ratio of 45.87, a PEG ratio of 1.53 and a beta of 1.03. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.45 and a quick ratio of 1.35. The stock’s 50-day simple moving average is $161.01 and its two-hundred day simple moving average is $163.04.

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.