Regal Rexnord Sees Unusually High Options Volume (NYSE:RRX)

Regal Rexnord Co. (NYSE:RRX) saw some unusual options trading on Wednesday. Stock traders bought 2,500 call options on the company. This represents an increase of approximately 1,016% compared to the typical volume of 224 call options.

Regal Rexnord Trading Up 3.0 %

RRX stock traded up $4.64 during midday trading on Wednesday, reaching $160.05. 99,936 shares of the company traded hands, compared to its average volume of 451,036. Regal Rexnord has a 52-week low of $130.94 and a 52-week high of $185.28. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.35 and a current ratio of 2.45. The business has a 50 day moving average of $165.69 and a 200-day moving average of $161.15. The firm has a market capitalization of $10.60 billion, a price-to-earnings ratio of 50.49, a P/E/G ratio of 1.83 and a beta of 1.04.

Regal Rexnord (NYSE:RRX) last issued its earnings results on Monday, November 4th. The company reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.48 by $0.01. Regal Rexnord had a return on equity of 9.48% and a net margin of 3.41%. The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.53 billion. During the same period in the prior year, the business earned $2.10 EPS. The business’s revenue for the quarter was down 10.4% compared to the same quarter last year. As a group, sell-side analysts expect that Regal Rexnord will post 9.24 earnings per share for the current fiscal year.

Regal Rexnord Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, January 14th. Shareholders of record on Tuesday, December 31st were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 0.87%. The ex-dividend date of this dividend was Tuesday, December 31st. Regal Rexnord’s dividend payout ratio is 44.16%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Citigroup decreased their price target on Regal Rexnord from $210.00 to $190.00 and set a “buy” rating for the company in a research note on Tuesday. Robert W. Baird cut their price objective on Regal Rexnord from $223.00 to $208.00 and set an “outperform” rating for the company in a report on Wednesday, November 6th. Loop Capital reissued a “buy” rating and set a $200.00 price target on shares of Regal Rexnord in a report on Thursday, September 19th. The Goldman Sachs Group boosted their price target on Regal Rexnord from $191.00 to $213.00 and gave the company a “buy” rating in a report on Thursday, December 12th. Finally, Barclays lowered their price objective on Regal Rexnord from $205.00 to $190.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 8th. One investment analyst has rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $202.00.

Insider Activity

In other news, CEO Louis V. Pinkham sold 8,774 shares of the firm’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $180.03, for a total value of $1,579,583.22. Following the completion of the transaction, the chief executive officer now owns 149,618 shares in the company, valued at $26,935,728.54. This trade represents a 5.54 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.82% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Regal Rexnord

Several hedge funds have recently made changes to their positions in RRX. Headlands Technologies LLC purchased a new stake in shares of Regal Rexnord during the 2nd quarter worth $46,000. 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 purchasing an additional 145 shares during the last quarter. Nomura Asset Management Co. Ltd. lifted its stake in shares of Regal Rexnord by 30.3% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 430 shares of the company’s stock worth $71,000 after purchasing an additional 100 shares during the last quarter. 1620 Investment Advisors Inc. raised its stake in Regal Rexnord by 17.4% in the third quarter. 1620 Investment Advisors Inc. now owns 452 shares of the company’s stock valued at $75,000 after buying an additional 67 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in Regal Rexnord by 30.0% in the third quarter. GAMMA Investing LLC now owns 841 shares of the company’s stock valued at $140,000 after buying an additional 194 shares during the last quarter. 99.72% of the stock is currently owned by hedge funds and other institutional investors.

Regal Rexnord Company Profile

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.