Zacks Investment Research Lowers Regal Beloit (RBC) to Hold

Zacks Investment Research downgraded shares of Regal Beloit (NYSE:RBC) from a buy rating to a hold rating in a report published on Friday.

According to Zacks, “Over the past six months, Regal Beloit’s shares have outperformed the industry. The company expects that solid segmental performance and acquisition benefits will continue to drive its top line in the quarters ahead. On the other hand, stronger volumes, improved productivity, incremental pricing and ongoing simplification efforts will likely boost the company’s profitability in the quarters ahead. However, rising cost of sales remains a major cause of concern for Regal Beloit. The company is currently facing price inflation on both aluminum and steel on account of newly imposed tariffs. Also, headwinds like high customer concentration risks and cyclical nature of business might dent near-term results of the company. Over the past 30 days, Zacks Consensus Estimate for the stock has remained unchanged for both 2018 and 2019.”

Several other research analysts have also recently issued reports on RBC. Goldman Sachs Group began coverage on shares of Regal Beloit in a report on Wednesday, October 3rd. They issued a buy rating and a $95.00 price objective for the company. BMO Capital Markets increased their price objective on shares of Regal Beloit from $89.00 to $92.00 and gave the company a market perform rating in a report on Wednesday, August 8th. Finally, Wolfe Research began coverage on shares of Regal Beloit in a report on Wednesday, June 27th. They issued an outperform rating and a $97.00 price objective for the company. Four analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $90.25.

Shares of NYSE:RBC opened at $83.53 on Friday. Regal Beloit has a 52 week low of $67.84 and a 52 week high of $86.75. The company has a market capitalization of $3.58 billion, a price-to-earnings ratio of 17.15, a PEG ratio of 1.39 and a beta of 1.50. The company has a current ratio of 2.24, a quick ratio of 1.22 and a debt-to-equity ratio of 0.53.

Regal Beloit (NYSE:RBC) last announced its quarterly earnings results on Monday, August 6th. The industrial products company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.59 by $0.01. Regal Beloit had a net margin of 6.77% and a return on equity of 10.30%. The company had revenue of $959.70 million for the quarter, compared to analyst estimates of $953.65 million. During the same quarter last year, the business earned $1.29 earnings per share. Regal Beloit’s revenue was up 10.4% compared to the same quarter last year. Sell-side analysts predict that Regal Beloit will post 5.92 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 12th. Stockholders of record on Friday, September 28th will be issued a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 1.34%. The ex-dividend date of this dividend is Thursday, September 27th. Regal Beloit’s dividend payout ratio (DPR) is presently 23.00%.

In other news, Director Christopher L. Doerr sold 6,085 shares of the stock in a transaction that occurred on Friday, August 10th. The shares were sold at an average price of $81.43, for a total value of $495,501.55. Following the completion of the transaction, the director now directly owns 17,900 shares in the company, valued at $1,457,597. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.30% of the company’s stock.

Large investors have recently modified their holdings of the stock. Intrinsic Edge Capital Management LLC bought a new stake in Regal Beloit during the second quarter worth approximately $6,215,000. Mutual of America Capital Management LLC lifted its position in shares of Regal Beloit by 3.2% in the 2nd quarter. Mutual of America Capital Management LLC now owns 37,751 shares of the industrial products company’s stock valued at $3,088,000 after acquiring an additional 1,174 shares in the last quarter. Dean Investment Associates LLC lifted its position in shares of Regal Beloit by 6.8% in the 2nd quarter. Dean Investment Associates LLC now owns 138,577 shares of the industrial products company’s stock valued at $11,336,000 after acquiring an additional 8,860 shares in the last quarter. Segall Bryant & Hamill LLC purchased a new stake in shares of Regal Beloit in the 2nd quarter valued at approximately $14,967,000. Finally, State of Alaska Department of Revenue lifted its position in shares of Regal Beloit by 38.6% in the 2nd quarter. State of Alaska Department of Revenue now owns 4,850 shares of the industrial products company’s stock valued at $396,000 after acquiring an additional 1,350 shares in the last quarter. Hedge funds and other institutional investors own 93.06% of the company’s stock.

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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