Regal Rexnord Co. (NYSE:RRX) Sees Large Increase in Short Interest

Regal Rexnord Co. (NYSE:RRX) saw a large growth in short interest in the month of May. As of May 31st, there was short interest totalling 1,380,000 shares, a growth of 51.9% from the May 15th total of 908,200 shares. Approximately 2.1% of the company’s shares are sold short. Based on an average daily volume of 425,100 shares, the days-to-cover ratio is currently 3.2 days.

Regal Rexnord Stock Performance

Shares of NYSE:RRX traded down $4.22 during trading on Friday, hitting $138.52. The stock had a trading volume of 542,724 shares, compared to its average volume of 409,634. The company has a quick ratio of 1.56, a current ratio of 2.62 and a debt-to-equity ratio of 0.99. Regal Rexnord has a 12-month low of $97.18 and a 12-month high of $183.85. The stock has a market capitalization of $9.21 billion, a price-to-earnings ratio of -288.58, a price-to-earnings-growth ratio of 1.41 and a beta of 1.10. The stock has a 50-day simple moving average of $156.56 and a two-hundred day simple moving average of $153.74.

Regal Rexnord (NYSE:RRX) last posted its quarterly earnings results on Monday, May 6th. The company reported $2.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.98 by $0.02. The company had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.56 billion. Regal Rexnord had a negative net margin of 0.48% and a positive return on equity of 9.42%. Regal Rexnord’s revenue for the quarter was up 26.4% compared to the same quarter last year. During the same period last year, the firm posted $2.22 EPS. On average, equities research analysts expect that Regal Rexnord will post 9.82 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 12th. Investors of record on Friday, June 28th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.01%. The ex-dividend date of this dividend is Friday, June 28th. Regal Rexnord’s dividend payout ratio (DPR) is -291.67%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Norges Bank acquired a new position in shares of Regal Rexnord in the fourth quarter worth about $180,918,000. Third Point LLC acquired a new position in Regal Rexnord in the 3rd quarter worth about $92,872,000. The Manufacturers Life Insurance Company boosted its position in Regal Rexnord by 167.5% during the fourth quarter. The Manufacturers Life Insurance Company now owns 948,346 shares of the company’s stock worth $140,374,000 after purchasing an additional 593,862 shares in the last quarter. Franklin Resources Inc. grew its holdings in Regal Rexnord by 87.3% in the fourth quarter. Franklin Resources Inc. now owns 1,001,545 shares of the company’s stock valued at $148,249,000 after purchasing an additional 466,820 shares during the period. Finally, Schroder Investment Management Group purchased a new stake in shares of Regal Rexnord in the fourth quarter valued at approximately $49,041,000. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

RRX has been the topic of several recent analyst reports. Barclays reduced their price target on Regal Rexnord from $199.00 to $181.00 and set an “overweight” rating on the stock in a report on Tuesday, June 4th. StockNews.com downgraded Regal Rexnord from a “buy” rating to a “hold” rating in a research report on Monday, June 10th. Oppenheimer upped their price target on shares of Regal Rexnord from $185.00 to $210.00 and gave the stock an “outperform” rating in a report on Wednesday, March 13th. KeyCorp lifted their price objective on shares of Regal Rexnord from $180.00 to $210.00 and gave the company an “overweight” rating in a report on Monday, March 25th. Finally, Robert W. Baird upped their target price on shares of Regal Rexnord from $205.00 to $208.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 8th. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, Regal Rexnord has a consensus rating of “Moderate Buy” and an average price target of $192.00.

About Regal Rexnord

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.