Traders Buy High Volume of Call Options on Regal Rexnord (NYSE:RRX)

Regal Rexnord Co. (NYSE:RRX - Get Free Report) saw unusually large options trading on Wednesday. Stock investors bought 2,500 call options on the stock. This is an increase of approximately 1,016% compared to the typical volume of 224 call options.

Insider Buying and Selling

In other news, CEO Louis V. Pinkham sold 8,774 shares of the company's stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $180.03, for a total value of $1,579,583.22. Following the completion of the transaction, the chief executive officer now owns 149,618 shares of the company's stock, valued at $26,935,728.54. This represents a 5.54 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.82% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Regal Rexnord

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RRX. Point72 Asset Management L.P. purchased a new stake in Regal Rexnord during the third quarter valued at approximately $83,460,000. Westfield Capital Management Co. LP grew its stake in shares of Regal Rexnord by 68.9% during the third quarter. Westfield Capital Management Co. LP now owns 979,521 shares of the company's stock valued at $162,483,000 after buying an additional 399,649 shares during the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Regal Rexnord by 24.7% during 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 buying an additional 222,775 shares during the last quarter. Forest Avenue Capital Management LP grew its stake in shares of Regal Rexnord by 63.8% during 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 during the last quarter. Finally, Millennium Management LLC grew its stake in shares of Regal Rexnord by 1,108.9% during the second quarter. Millennium Management LLC now owns 96,819 shares of the company's stock valued at $13,092,000 after buying an additional 88,810 shares during the last quarter. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on RRX shares. Barclays dropped their price objective on Regal Rexnord from $205.00 to $190.00 and set an "overweight" rating for the company in a research note on Wednesday, January 8th. Robert W. Baird dropped their price objective on Regal Rexnord from $223.00 to $208.00 and set an "outperform" rating for the company in a research note on Wednesday, November 6th. Jefferies Financial Group assumed coverage on Regal Rexnord in a research note on Thursday, December 12th. They issued a "buy" rating and a $215.00 price objective for the company. StockNews.com upgraded Regal Rexnord from a "buy" rating to a "strong-buy" rating in a research report on Wednesday, January 8th. Finally, Citigroup decreased their target price on Regal Rexnord from $210.00 to $190.00 and set a "buy" rating on the stock in a research report on Tuesday. One analyst has rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, Regal Rexnord presently has a consensus rating of "Buy" and a consensus target price of $202.00.

Regal Rexnord Price Performance

Shares of NYSE:RRX traded up $1.95 during mid-day trading on Wednesday, reaching $157.36. The stock had a trading volume of 360,694 shares, compared to its average volume of 483,633. Regal Rexnord has a 1 year low of $130.94 and a 1 year high of $185.28. The company has a current ratio of 2.45, a quick ratio of 1.35 and a debt-to-equity ratio of 0.87. The business's 50 day moving average price is $165.69 and its 200 day moving average price is $161.15. The company has a market cap of $10.42 billion, a P/E ratio of 49.64, a price-to-earnings-growth ratio of 1.83 and a beta of 1.04.

Regal Rexnord (NYSE:RRX - Get Free Report) last issued its quarterly earnings data 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. Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%. The business had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same period in the prior year, the business posted $2.10 earnings per share. The company's quarterly revenue was down 10.4% compared to the same quarter last year. Research analysts expect that Regal Rexnord will post 9.24 EPS for the current fiscal year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 14th. Shareholders of record on Tuesday, December 31st were given a dividend of $0.35 per share. The ex-dividend date was Tuesday, December 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.89%. Regal Rexnord's dividend payout ratio (DPR) is presently 44.16%.

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.