Diamond Hill Capital Management Inc. Cuts Holdings in Regal Rexnord Co. (NYSE:RRX)

Diamond Hill Capital Management Inc. cut its stake in Regal Rexnord Co. (NYSE:RRX) by 0.5% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 3,166,312 shares of the company’s stock after selling 15,574 shares during the quarter. Regal Rexnord comprises approximately 2.1% of Diamond Hill Capital Management Inc.’s holdings, making the stock its 9th largest holding. Diamond Hill Capital Management Inc.’s holdings in Regal Rexnord were worth $525,228,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently bought and sold shares of RRX. Headlands Technologies LLC bought a new position in Regal Rexnord during the 2nd quarter valued at about $46,000. 1620 Investment Advisors Inc. purchased a new stake in shares of Regal Rexnord in the second quarter worth approximately $52,000. UMB Bank n.a. lifted its stake in shares of Regal Rexnord by 72.5% during the 3rd quarter. UMB Bank n.a. now owns 345 shares of the company’s stock worth $57,000 after acquiring an additional 145 shares during the last quarter. EntryPoint Capital LLC purchased a new position in Regal Rexnord during the 1st quarter valued at $68,000. Finally, GAMMA Investing LLC grew its position in Regal Rexnord by 13.9% in the 2nd quarter. GAMMA Investing LLC now owns 647 shares of the company’s stock valued at $87,000 after acquiring an additional 79 shares during the last quarter. 99.72% of the stock is owned by hedge funds and other institutional investors.

Regal Rexnord Stock Performance

Shares of NYSE RRX opened at $175.06 on Monday. The company has a current ratio of 2.45, a quick ratio of 1.38 and a debt-to-equity ratio of 0.87. The company has a 50 day simple moving average of $166.02 and a two-hundred day simple moving average of $156.48. Regal Rexnord Co. has a 12 month low of $105.11 and a 12 month high of $185.28. The stock has a market cap of $11.59 billion, a price-to-earnings ratio of 55.22, a PEG ratio of 1.90 and a beta of 1.04.

Regal Rexnord (NYSE:RRX) last released its quarterly earnings data on Monday, November 4th. The company reported $2.49 earnings per share for the quarter, beating analysts’ consensus estimates of $2.48 by $0.01. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.53 billion. Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%. The company’s revenue was down 10.4% on a year-over-year basis. During the same quarter last year, the business posted $2.10 EPS. As a group, analysts predict that Regal Rexnord Co. will post 9.2 earnings per share for the current year.

Regal Rexnord Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 14th. Shareholders of record on Tuesday, December 31st will be issued a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.80%. Regal Rexnord’s payout ratio is 44.16%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RRX. StockNews.com raised shares of Regal Rexnord from a “hold” rating to a “buy” rating in a research note on Wednesday, October 16th. The Goldman Sachs Group lifted their price target on Regal Rexnord from $176.00 to $195.00 and gave the company a “buy” rating in a report on Friday, August 2nd. Citigroup began coverage on Regal Rexnord in a research note on Monday, October 14th. They set a “buy” rating and a $200.00 price objective for the company. KeyCorp cut their target price on Regal Rexnord from $210.00 to $190.00 and set an “overweight” rating on the stock in a research note on Monday, July 15th. Finally, Loop Capital reissued a “buy” rating and set a $200.00 price target on shares of Regal Rexnord in a research report on Thursday, September 19th. One analyst has rated the stock with a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $193.00.

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.