Zacks Investment Research downgraded shares of Regal Beloit (NYSE:RBC) from a buy rating to a hold rating in a report published on Wednesday.
According to Zacks, “Over the years, Regal Beloit has consolidated its product lines and streamlined product brands to evolve as a dynamic enterprise. The company continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. We believe that such moves along with its robust operating platform and an efficient management team will help in the execution of its strategic priorities and drive net asset value. However, margin pressures, high concentration risks and adverse foreign currency translation remain headwinds. Also, acquisitions entail huge integration costs, which often become a drag on the profitability of the company. Stiff competition from other established players in the market remains another significant challenge. Regal Beloit has also underperformed the industry in the last six months on an average.”
A number of other analysts have also issued reports on RBC. Barrington Research reissued an outperform rating and issued a $87.00 price target on shares of Regal Beloit in a research report on Monday, February 12th. Seaport Global Securities upgraded Regal Beloit from a neutral rating to a buy rating and increased their price objective for the stock from $82.00 to $88.00 in a report on Wednesday, February 7th. ValuEngine downgraded Regal Beloit from a buy rating to a hold rating in a report on Thursday, February 22nd. Finally, Barclays started coverage on Regal Beloit in a report on Thursday, February 15th. They issued an equal weight rating and a $80.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the company. Regal Beloit presently has an average rating of Hold and an average target price of $86.08.
Regal Beloit (NYSE:RBC) last posted its quarterly earnings results on Monday, February 5th. The industrial products company reported $1.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.13 by $0.01. The business had revenue of $820.70 million during the quarter, compared to analyst estimates of $794.65 million. Regal Beloit had a net margin of 6.34% and a return on equity of 9.64%. The firm’s revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.04 earnings per share. sell-side analysts predict that Regal Beloit will post 5.57 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, April 13th. Investors of record on Thursday, March 29th were issued a $0.26 dividend. The ex-dividend date was Wednesday, March 28th. This represents a $1.04 dividend on an annualized basis and a yield of 1.44%. Regal Beloit’s dividend payout ratio is currently 21.36%.
A number of large investors have recently added to or reduced their stakes in the stock. New York State Common Retirement Fund grew its stake in shares of Regal Beloit by 3.1% in the 3rd quarter. New York State Common Retirement Fund now owns 118,106 shares of the industrial products company’s stock worth $9,330,000 after buying an additional 3,500 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Regal Beloit by 13.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 41,132 shares of the industrial products company’s stock worth $3,250,000 after buying an additional 4,894 shares during the last quarter. Legal & General Group Plc grew its stake in shares of Regal Beloit by 15.7% in the 3rd quarter. Legal & General Group Plc now owns 60,215 shares of the industrial products company’s stock worth $4,758,000 after buying an additional 8,162 shares during the last quarter. Wells Fargo & Company MN lifted its position in Regal Beloit by 28.3% in the 3rd quarter. Wells Fargo & Company MN now owns 76,323 shares of the industrial products company’s stock valued at $6,029,000 after acquiring an additional 16,858 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. lifted its position in Regal Beloit by 5.9% in the 3rd quarter. Schwab Charles Investment Management Inc. now owns 279,905 shares of the industrial products company’s stock valued at $22,113,000 after acquiring an additional 15,643 shares in the last quarter. Hedge funds and other institutional investors own 96.70% of the company’s stock.
Regal Beloit Company Profile
Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
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