Regal Rexnord Corporation (NYSE:RRX) Sees Significant Growth in Short Interest

Regal Rexnord Corporation (NYSE:RRX) was the recipient of a large increase in short interest during the month of March. As of March 31st, there was short interest totaling 2,501,117 shares, an increase of 40.4% from the March 15th total of 1,781,433 shares. Based on an average daily volume of 1,074,457 shares, the days-to-cover ratio is presently 2.3 days. Approximately 3.8% of the shares of the stock are short sold.

Regal Rexnord Stock Performance

NYSE:RRX opened at $195.79 on Friday. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.15 and a quick ratio of 1.10. The firm has a market capitalization of $13.03 billion, a price-to-earnings ratio of 46.62, a PEG ratio of 1.80 and a beta of 1.11. The company’s 50-day moving average is $201.88 and its two-hundred day moving average is $166.01. Regal Rexnord has a 1-year low of $95.05 and a 1-year high of $229.30.

Regal Rexnord (NYSE:RRX) last posted its earnings results on Thursday, February 5th. The company reported $2.51 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.04. The company had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.54 billion. Regal Rexnord had a net margin of 4.71% and a return on equity of 9.60%. Regal Rexnord’s revenue was up 4.3% on a year-over-year basis. During the same period in the previous year, the business posted $2.34 EPS. Analysts forecast that Regal Rexnord will post 9.95 EPS for the current year.

Regal Rexnord Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 14th. Investors of record on Tuesday, March 31st were given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Tuesday, March 31st. Regal Rexnord’s dividend payout ratio (DPR) is presently 33.33%.

Insider Buying and Selling at Regal Rexnord

In related news, EVP Cheryl Lewis sold 2,262 shares of the company’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $215.73, for a total transaction of $487,981.26. Following the completion of the sale, the executive vice president owned 13,219 shares of the company’s stock, valued at approximately $2,851,734.87. This represents a 14.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Louis V. Pinkham sold 36,728 shares of the company’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $215.52, for a total transaction of $7,915,618.56. Following the sale, the chief executive officer directly owned 83,337 shares of the company’s stock, valued at approximately $17,960,790.24. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 53,451 shares of company stock valued at $11,386,689. Insiders own 0.63% of the company’s stock.

Institutional Trading of Regal Rexnord

A number of hedge funds and other institutional investors have recently modified their holdings of RRX. AQR Capital Management LLC increased its position in shares of Regal Rexnord by 208.1% during the 1st quarter. AQR Capital Management LLC now owns 17,747 shares of the company’s stock worth $2,011,000 after purchasing an additional 11,987 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of Regal Rexnord by 91.6% during the 1st quarter. Jones Financial Companies Lllp now owns 617 shares of the company’s stock worth $70,000 after purchasing an additional 295 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Regal Rexnord by 135.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock worth $25,000 after purchasing an additional 127 shares during the last quarter. Cetera Investment Advisers increased its position in shares of Regal Rexnord by 6.7% during the 2nd quarter. Cetera Investment Advisers now owns 3,116 shares of the company’s stock worth $452,000 after purchasing an additional 196 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Regal Rexnord during the 2nd quarter worth about $4,759,000. 99.72% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RRX. Oppenheimer upped their price objective on shares of Regal Rexnord from $180.00 to $225.00 and gave the company an “outperform” rating in a research note on Friday, February 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a research note on Thursday, January 22nd. Citigroup raised their target price on Regal Rexnord from $230.00 to $240.00 and gave the stock a “buy” rating in a research note on Monday. JPMorgan Chase & Co. raised their target price on Regal Rexnord from $190.00 to $230.00 and gave the stock an “overweight” rating in a research note on Friday, February 6th. Finally, The Goldman Sachs Group raised their target price on Regal Rexnord from $170.00 to $230.00 and gave the stock a “buy” rating in a research note on Monday, February 9th. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Regal Rexnord presently has a consensus rating of “Moderate Buy” and an average price target of $229.75.

About Regal Rexnord

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.