Regal Beloit (NYSE:RBC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Regal Beloit's shares have declined in the past month. Currently, the company is grappling with adverse impacts of rising costs and expenses. In the third quarter of 2018, its costs of sales increased 8.4% year over year and gross margin was down 30 basis points (bps). Rising prices of both aluminum and steel on account of Section 232 tariff as well as secondary inflation impact on the purchase of certain other components that include aluminum and steel as inputs are creating problems. Further, headwinds like high customer concentration risks and cyclical nature of business, as well as high debt levels, might dent near-term results of the company. In the past 30 days, the company's earnings estimates declined for 2019.”
RBC has been the subject of several other research reports. Goldman Sachs Group began coverage on Regal Beloit in a research report on Wednesday, October 3rd. They issued a “buy” rating and a $95.00 price objective for the company. Royal Bank of Canada reiterated a “buy” rating and issued a $90.00 price objective (down previously from $95.00) on shares of Regal Beloit in a research report on Monday, November 5th. BMO Capital Markets lowered their price objective on Regal Beloit to $83.00 and set a “market perform” rating for the company in a research report on Wednesday, November 7th. Wolfe Research downgraded Regal Beloit from an “outperform” rating to a “market perform” rating in a research report on Tuesday, January 8th. Finally, CIBC reiterated a “market perform” rating on shares of Regal Beloit in a research report on Tuesday, January 8th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $89.13.
Shares of NYSE RBC traded up $0.65 during midday trading on Thursday, hitting $73.64. 2,718 shares of the company’s stock were exchanged, compared to its average volume of 237,239. The firm has a market capitalization of $3.11 billion, a price-to-earnings ratio of 15.15, a PEG ratio of 1.10 and a beta of 1.47. The company has a current ratio of 2.61, a quick ratio of 1.42 and a debt-to-equity ratio of 0.54. Regal Beloit has a 12-month low of $66.04 and a 12-month high of $86.75.
Regal Beloit (NYSE:RBC) last issued its earnings results on Monday, November 5th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.61 by $0.06. The business had revenue of $925.40 million during the quarter, compared to analyst estimates of $924.18 million. Regal Beloit had a return on equity of 10.73% and a net margin of 6.34%. Regal Beloit’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.39 earnings per share. On average, analysts predict that Regal Beloit will post 5.91 earnings per share for the current year.
Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in Regal Beloit by 0.8% in the third quarter. Vanguard Group Inc. now owns 4,181,428 shares of the industrial products company’s stock worth $344,758,000 after purchasing an additional 33,214 shares during the period. Vanguard Group Inc grew its stake in Regal Beloit by 0.8% in the third quarter. Vanguard Group Inc now owns 4,181,428 shares of the industrial products company’s stock worth $344,758,000 after purchasing an additional 33,214 shares during the period. Franklin Resources Inc. grew its stake in Regal Beloit by 5.9% in the third quarter. Franklin Resources Inc. now owns 1,496,124 shares of the industrial products company’s stock worth $123,355,000 after purchasing an additional 83,900 shares during the period. LSV Asset Management grew its stake in Regal Beloit by 15.9% in the third quarter. LSV Asset Management now owns 1,387,151 shares of the industrial products company’s stock worth $114,370,000 after purchasing an additional 190,206 shares during the period. Finally, Massachusetts Financial Services Co. MA grew its stake in Regal Beloit by 8.0% in the third quarter. Massachusetts Financial Services Co. MA now owns 1,382,986 shares of the industrial products company’s stock worth $114,027,000 after purchasing an additional 101,878 shares during the period. Institutional investors own 92.65% of the company’s stock.
Regal Beloit Company Profile
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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