Regal Rexnord (NYSE:RRX) Shares Down 6.3% Following Weak Earnings

Regal Rexnord Co. (NYSE:RRX - Get Free Report) fell 6.3% during trading 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 changed hands 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 9.57% and a net margin of 3.25%.

Regal Rexnord Announces Dividend

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. The ex-dividend date is Monday, March 31st. This represents a $1.40 annualized dividend and a dividend yield of 1.03%. Regal Rexnord's payout ratio is 47.46%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on RRX shares. Citigroup cut their price target on Regal Rexnord from $210.00 to $190.00 and set a "buy" rating on the stock in a report on Tuesday, January 14th. The Goldman Sachs Group raised their price target on shares of Regal Rexnord from $191.00 to $213.00 and gave the stock a "buy" rating in a report on Thursday, December 12th. StockNews.com cut shares of Regal Rexnord from a "strong-buy" rating to a "buy" rating in a research report on Thursday, January 16th. Oppenheimer decreased their target price on Regal Rexnord from $210.00 to $190.00 and set an "outperform" rating for the company in a research report on Friday. Finally, Jefferies Financial Group assumed coverage on Regal Rexnord in a report on Thursday, December 12th. They issued a "buy" rating and a $215.00 price target on the stock. One analyst has rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $199.50.

Institutional Trading of Regal Rexnord

Several institutional investors and hedge funds have recently modified their holdings of RRX. Creative Planning grew its holdings in Regal Rexnord by 28.5% during the second quarter. Creative Planning now owns 2,805 shares of the company's stock worth $379,000 after buying an additional 622 shares in the last quarter. Sanctuary Advisors LLC purchased a new stake in shares of Regal Rexnord in the second quarter valued at about $263,000. GAMMA Investing LLC lifted its position in shares of Regal Rexnord by 30.0% during the third quarter. GAMMA Investing LLC now owns 841 shares of the company's stock valued at $140,000 after purchasing an additional 194 shares in the last quarter. UMB Bank n.a. boosted its holdings in 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 purchasing an additional 145 shares during the last quarter. Finally, Ritholtz Wealth Management bought a new stake in Regal Rexnord in the 3rd quarter worth about $271,000. 99.72% of the stock is owned by hedge funds and other institutional investors.

Regal Rexnord Stock Performance

The company's 50 day simple moving average is $159.79 and its 200 day simple moving average is $163.00. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.35 and a current ratio of 2.26. The stock has a market cap of $9.04 billion, a PE ratio of 46.29, a price-to-earnings-growth ratio of 1.38 and a beta of 1.03.

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.