Zacks Investment Research upgraded shares of RBC Bearings (NASDAQ:ROLL) from a sell rating to a hold rating in a report published on Thursday morning.
According to Zacks, “RBC Bearings’ third-quarter fiscal 2019 earnings surpassed the Zacks Consensus Estimate by 0.9% and grew 9.5% year over year. The company expects that strong demand from industrial and aerospace end markets will continue to drive its top line in the quarters ahead. Also, stellar revenues and reduced tax expenses will likely enhance its profitability. However, in the past three months, the company’s shares has underperformed the industry and looks comparatively overvalued considering P/E multiples. Supply chain setbacks in some aerospace plants and high cost of sales are causes of concern. Over the past 30 days, Zacks Consensus Estimate for the company’s earnings has remained unchanged for fiscal 2019 and declined for fiscal 2020.”
Several other research firms have also issued reports on ROLL. BidaskClub lowered shares of RBC Bearings from a buy rating to a hold rating in a research report on Thursday, November 8th. Bank of America lowered shares of RBC Bearings from a buy rating to a neutral rating and set a $165.00 price target on the stock. in a research report on Wednesday, November 14th. They noted that the move was a valuation call. ValuEngine lowered shares of RBC Bearings from a buy rating to a hold rating in a research report on Thursday, December 6th. Finally, Seaport Global Securities reaffirmed a neutral rating on shares of RBC Bearings in a research report on Monday, January 14th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $160.00.
RBC Bearings (NASDAQ:ROLL) last posted its quarterly earnings results on Tuesday, February 5th. The industrial products company reported $1.15 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.14 by $0.01. RBC Bearings had a net margin of 14.34% and a return on equity of 12.77%. The firm had revenue of $171.45 million for the quarter, compared to analyst estimates of $175.96 million. During the same period in the prior year, the firm posted $1.05 earnings per share. The company’s quarterly revenue was up 2.8% compared to the same quarter last year. Equities research analysts anticipate that RBC Bearings will post 4.72 EPS for the current year.
In other news, Director Alan B. Levine sold 1,084 shares of the stock in a transaction dated Wednesday, November 14th. The shares were sold at an average price of $150.00, for a total value of $162,600.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 3.10% of the stock is owned by corporate insiders.
Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. increased its position in RBC Bearings by 2.7% during the fourth quarter. BlackRock Inc. now owns 2,290,937 shares of the industrial products company’s stock worth $300,340,000 after acquiring an additional 60,064 shares during the period. Lisanti Capital Growth LLC increased its position in RBC Bearings by 57.5% during the fourth quarter. Lisanti Capital Growth LLC now owns 51,469 shares of the industrial products company’s stock worth $6,748,000 after acquiring an additional 18,780 shares during the period. New York State Common Retirement Fund increased its position in RBC Bearings by 13.7% during the fourth quarter. New York State Common Retirement Fund now owns 41,584 shares of the industrial products company’s stock worth $5,452,000 after acquiring an additional 5,023 shares during the period. Bbva Compass Bancshares Inc. increased its position in RBC Bearings by 24.0% during the fourth quarter. Bbva Compass Bancshares Inc. now owns 16,027 shares of the industrial products company’s stock worth $2,101,000 after acquiring an additional 3,097 shares during the period. Finally, American Capital Management Inc. bought a new position in RBC Bearings during the fourth quarter worth about $2,206,000. 99.31% of the stock is currently owned by institutional investors.
About RBC Bearings
RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. It operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Engineered Products. The Plain Bearings segment produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings that are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or in heavy mining and construction equipment.
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