Zacks Investment Research cut shares of Regal Beloit (NYSE:RBC) from a buy rating to a hold rating in a report released 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.”
Other equities analysts have also recently issued reports about the company. Seaport Global Securities raised Regal Beloit from a neutral rating to a buy rating and increased their price target for the company from $82.00 to $88.00 in a report on Wednesday, February 7th. Barclays began coverage on Regal Beloit in a report on Thursday, February 15th. They set an equal weight rating and a $80.00 price target on the stock. ValuEngine raised Regal Beloit from a hold rating to a buy rating in a report on Tuesday, December 19th. Finally, Barrington Research reissued an outperform rating and set a $87.00 price target on shares of Regal Beloit in a report on Monday, February 12th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $86.08.
RBC stock opened at $72.20 on Wednesday. The company has a market capitalization of $3,208.68, a P/E ratio of 14.87, a price-to-earnings-growth ratio of 1.18 and a beta of 1.38. Regal Beloit has a 12-month low of $67.84 and a 12-month high of $87.50. The company has a current ratio of 2.21, a quick ratio of 1.15 and a debt-to-equity ratio of 0.44.
Regal Beloit (NYSE:RBC) last released its quarterly earnings data on Monday, February 5th. The industrial products company reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.01. The business had revenue of $820.70 million for the quarter, compared to analysts’ expectations of $794.65 million. Regal Beloit had a return on equity of 9.64% and a net margin of 6.34%. The firm’s quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 EPS. analysts forecast that Regal Beloit will post 5.57 EPS for the current year.
The business also recently announced 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 institutional investors have recently made changes to their positions in RBC. LSV Asset Management raised its holdings in Regal Beloit by 133.6% in the 4th quarter. LSV Asset Management now owns 543,660 shares of the industrial products company’s stock worth $41,644,000 after purchasing an additional 310,927 shares during the period. BlackRock Inc. raised its holdings in Regal Beloit by 4.3% in the 4th quarter. BlackRock Inc. now owns 4,243,407 shares of the industrial products company’s stock worth $325,044,000 after purchasing an additional 173,534 shares during the period. New Amsterdam Partners LLC NY bought a new position in Regal Beloit in the 4th quarter worth $5,520,000. Guggenheim Capital LLC raised its holdings in Regal Beloit by 306.0% in the 4th quarter. Guggenheim Capital LLC now owns 94,445 shares of the industrial products company’s stock worth $7,235,000 after purchasing an additional 71,185 shares during the period. Finally, Alliancebernstein L.P. raised its holdings in Regal Beloit by 5.5% in the 4th quarter. Alliancebernstein L.P. now owns 1,311,995 shares of the industrial products company’s stock worth $100,499,000 after purchasing an additional 67,830 shares during the period. 96.70% of the stock is currently owned by institutional investors.
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About Regal Beloit
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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