Rexnord (RXN) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Rexnord (NYSE:RXN) from a hold rating to a buy rating in a report issued on Wednesday. The firm currently has $31.00 price target on the industrial products company’s stock.

According to Zacks, “In the past month, Rexnord's shares have outperformed the industry. In second-quarter fiscal 2019, the company's adjusted earnings trumped the Zacks Consensus Estimate by 12.2% while grew 37.5% year over year on the back of solid top-line growth. The company expects to gain from product innovation, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. World Dryer and Centa Power buyouts are expected to boost the company's businesses while its plans to divest VAG operations are anticipated to free resources, which can be used for debt reduction. Core sales growth is predicted to be in a mid-single digit. In the past 30 days, earnings estimates on the stock improved for both fiscal 2019 and fiscal 2020.”

Several other equities research analysts have also commented on RXN. ValuEngine upgraded Rexnord from a hold rating to a buy rating in a research note on Friday, November 16th. Oppenheimer reiterated a buy rating and issued a $35.00 target price on shares of Rexnord in a research note on Monday, July 30th. Goldman Sachs Group began coverage on Rexnord in a research note on Tuesday, October 2nd. They issued a neutral rating and a $31.00 target price for the company. KeyCorp increased their target price on Rexnord from $33.00 to $34.00 and gave the company an overweight rating in a research note on Tuesday, July 31st. Finally, Bank of America increased their target price on Rexnord from $32.00 to $33.00 and gave the company a buy rating in a research note on Tuesday, July 31st. Three research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of Buy and an average target price of $32.50.

Shares of NYSE:RXN opened at $27.35 on Wednesday. The stock has a market cap of $2.90 billion, a price-to-earnings ratio of 16.72, a PEG ratio of 0.97 and a beta of 1.48. The company has a quick ratio of 1.50, a current ratio of 2.23 and a debt-to-equity ratio of 1.17. Rexnord has a 12 month low of $23.75 and a 12 month high of $32.11.

Rexnord (NYSE:RXN) last announced its quarterly earnings results on Tuesday, October 30th. The industrial products company reported $0.46 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.04. The company had revenue of $524.80 million during the quarter, compared to analyst estimates of $516.66 million. Rexnord had a positive return on equity of 16.99% and a negative net margin of 0.89%. The firm’s revenue was up 15.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.32 earnings per share. Research analysts predict that Rexnord will post 1.75 EPS for the current fiscal year.

In other Rexnord news, Director Theodore D. Crandall purchased 4,000 shares of Rexnord stock in a transaction that occurred on Thursday, November 1st. The stock was purchased at an average price of $27.84 per share, with a total value of $111,360.00. Following the completion of the acquisition, the director now owns 20,330 shares of the company’s stock, valued at approximately $565,987.20. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Craig Wehr sold 7,500 shares of the stock in a transaction dated Tuesday, November 6th. The shares were sold at an average price of $28.99, for a total value of $217,425.00. Following the completion of the transaction, the insider now directly owns 15,054 shares of the company’s stock, valued at approximately $436,415.46. The disclosure for this sale can be found here. 4.50% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Janus Henderson Group PLC boosted its holdings in Rexnord by 0.9% in the second quarter. Janus Henderson Group PLC now owns 15,165,954 shares of the industrial products company’s stock valued at $440,723,000 after purchasing an additional 140,597 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Rexnord by 1.6% in the third quarter. Vanguard Group Inc. now owns 9,090,969 shares of the industrial products company’s stock valued at $280,001,000 after purchasing an additional 141,884 shares during the last quarter. FMR LLC boosted its holdings in Rexnord by 10.1% in the third quarter. FMR LLC now owns 6,867,892 shares of the industrial products company’s stock valued at $211,531,000 after purchasing an additional 629,550 shares during the last quarter. Jennison Associates LLC boosted its holdings in Rexnord by 0.9% in the second quarter. Jennison Associates LLC now owns 3,498,406 shares of the industrial products company’s stock valued at $101,664,000 after purchasing an additional 31,160 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Rexnord by 3.0% in the second quarter. Dimensional Fund Advisors LP now owns 2,848,021 shares of the industrial products company’s stock valued at $82,763,000 after purchasing an additional 82,879 shares during the last quarter.

Rexnord Company Profile

Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies.

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